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TransGlobe Energy Corporation Announces 2001 First Quarter Results

CALGARY, ALBERTA--TransGlobe Energy Corporation ("TransGlobe" or 
"the Company") (TSE, symbol "TGL"; OTC-BB symbol "TGLEF") is 
pleased to announce its financial and operating results for the 
three months ended March 31, 2001. All dollar values are expressed
in United States dollars unless otherwise stated.  


* Record daily production of 1,402 barrels of oil equivalent  

* Record cash flow of $1,739,300 and earnings of $1,005,300 

* Tasour #5, Block 32, Yemen initial production of 7,060 barrels 
of oil per day, Feb. 2001 

* Seismic contracts awarded for Block S-1 and Block 32, Yemen 

* Increased land holdings in Canada 



                                              Three months ended
                                                    March 31
Financial                                     2001          2000
 Oil and gas revenue net of royalties   $  2,489,965   $   266,815
 Cash flow from operations                 1,739,300       (42,655)
  Basic per share                              $0.03             -
 Net income (loss)                         1,005,300      (140,449)
  Basic per share                       $       0.02             -
 Capital expenditures - Canada               368,346       200,243
 Capital expenditures - United States              -         1,765
 Capital expenditures - Yemen           $    751,029   $   219,790

                                               As at         As at
                                            March 31,     March 31,
                                                2001          2000
Debt                                    $     81,260   $         -
 Common shares outstanding  
  Basic                                   50,507,190    37,587,485
  Diluted                                 51,301,932    40,306,837
 Oil and liquids (Bopd)                        1,286           108
 Gas (Mcfpd)                                   1,164           412
 Total (Boed)                                  1,402           149


Two significant events affected operations between the three month
periods ended March 31, 2001 and 2000. The most significant is the
new production from the Tasour field on Block 32, Yemen; this 
field started producing in November, 2000. The other is the 
absence of operations in the United States in 2001. The Company 
divested its oil and gas properties in the United States effective
October 31, 2000. Proceeds from the sale of these properties were 
re-invested in Yemen.   


The first full quarter of production for the Tasour field in Yemen
yielded an average production rate of 1,215 barrels of oil per day
("Bopd") to TransGlobe. The field commenced production in 
November, 2000. Oil production was 862 Bopd to TransGlobe for 
November/December 2000. The increase from the last two months of 
2000 was due to the addition of production from Tasour #5 in 
February 2001. It is expected that production from the Tasour 
field will average 7,200 Bopd (994 Bopd to TransGlobe) for the 
year 2001.    

Production from Canada averaged 187 barrels of oil equivalent per 
day (Boed) in the first quarter of 2001 compared to 101 Boed in 
2000 for the comparable period. The increase in production is 
attributable to two new gas wells which were brought into 
production at the end of 2000, increased production at Camao as a 
result of recompleting a gas well and the acquisition/tie-in of a 
gas well at Nevis. With the sale of the United States properties 
and the addition of gas production from new wells 
drilled/recompleted in Canada, 60% of TransGlobe's Canadian 
production was gas and 40% was oil in the first quarter of 2001, a
reverse of product mix from 2000. Production in the United States 
averaged 48 Boed in 2000, primarily oil, from four wells in 

Operating Results 

Net income for the first quarter 2001 was $1,005,300 ($0.02 per 
share) compared to a net loss of  $140,449 in 2000 with cash flow 
from operations of $1,739,300 ($0.03 per share) compared to a 
deficiency of $(42,655) respectively. The increase in net income 
and cash flow in 2001 is primarily a result of the addition of 
production from Yemen on Block 32. 

Revenue net of royalties was $2,489,965 for the first quarter 2001
compared to $266,815 for the same period in 2000 reflecting the 
impact of Yemen production on TransGlobe's operations. In 2001, 
revenues net of royalties were $1,865,432 and $624,533 from Yemen 
and Canada respectively. In 2000, revenues net of royalties in 
Canada amounted to $179,478 and $87,337 in the United States. 
Revenue in Canada increased due to a 215% increase in gas prices 
and an 85% increase in production. Gas prices averaged $6.24 per 
Mcf in Canada in 2001 and $1.98 per Mcf in 2000. Oil prices in 
Canada averaged $24.77 per barrel in 2001 and $26.26 per barrel in
2000. The average oil price for the Company's production in Yemen 
for the first quarter 2001 was $22.27 per barrel. Oil produced 
from the Tasour field in Yemen is marketed by Nexen Marketing 
International Ltd. and the oil price is based on a Brent price 
less a quality/transportation differential between the Brent blend
and the Yemen Masila crude oil blend. 

The netback per barrel of oil equivalent ("Boe") was $16.19 during
the first quarter 2001. The comparable figure for the same period 
in 2000 was $13.21 per Boe. The increase in netbacks between 
periods is primarily due to the significant increase in gas prices
and reduction in per unit operating costs. Operating costs 
averaged $3.56 per barrel in the first quarter of 2001 compared to
$6.17 per barrel in 2000. The decrease on a relative basis is due 
to the Yemen Block 32 operations which averaged $3.02 per barrel 
in 2001. 

Capital Expenditures 

Capital expenditures were $751,029 and $368,346 in Yemen and 
Canada respectively in 2001. Expenditures in Yemen were primarily 
for drilling and completing Tasour #5 on Block 32 and costs for 
the Harmel long term production test on Block S-1. In 2000, the 
Company incurred $219,790 in capital expenditures for a seismic 
program and commencement of the Tasour development program on 
Block 32. Canadian capital expenditures in 2001 relate to several 
Crown land purchases, drilling a well at Morningside and 
recompletion costs in the Morinville area. Capital expenditures of
$200,243 in Canada in the first quarter 2000 relate mainly to 
Crown land purchases at Cherhill and Elk Island, completion costs 
at Elk Island, and recompletion costs on a horizontal well at 
Camao. Capital expenditures in the United States were minimal in 
2000 as the domestic focus shifted to Canada. The properties in 
the United States were divested  in 2000 to fund activity in 


The Company's growth strategy for 2001 will continue to favor 
exploration and development on the Yemen properties. Seismic 
acquisition and drilling on both our Yemen projects is planned for
2001/2002. In the Block 32 development area (13.81087% working 
interest) drilling and seismic work will be carried out on the 
Tasour structure as well as seismic and exploration drilling on 
some of the additional eleven prospects. The 2001 Block 32 joint 
venture budget and work program includes the acquisition of 120 
kilometers of seismic, drilling at least one development well in 
the Tasour field and one exploration well. The primary focus of 
this year's seismic program is to further define the Tasour field 
and to refine drilling locations on several prospects located in 
the northwestern portion of the development area.  The 
northwestern portion of the development area was selected to 
evaluate the trend mapped towards Block 32 from the recently 
announced discovery at Sharyoof on the adjacent Block 53. Two 
Qishn wells were drilled on Block 53 at Sharyoof with announced 
well tests of 5,000 and 16,500 Bopd respectively. The seismic 
acquisition is anticipated to take place between June and August 
and drilling is expected to commence in October.  Now that the 
Tasour facilities and pipeline are operational they can be used to
develop any new discoveries quickly, which significantly enhances 
future investment in Block 32. 

The results of the four well drilling program carried out on Block
S-1 in 2000 (25% working interest) are very encouraging. Both 
discoveries, Harmel a large shallow oil pool and An Naeem a gas 
condensate discovery, will see further appraisal work. The 2001 
joint venture budget included an additional 230 square kilometers 
(90 square miles) of 3-D seismic, one exploration well, one 
appraisal well at Harmel #2 and conducting extended production 
tests on Harmel #1 and #2. The start-up of the 3-D seismic 
acquisition is expected in July 2001. The completion of the 
acquisition, processing and interpretation are projected for 
December 2001, which will defer the drilling schedule into the 
first quarter of 2002. The 3-D seismic program will evaluate a 
potential trend of the Alif and Lam formations identified on 
existing 2-D seismic. The trend extends from the adjacent Jannah 
Hunt, Dhahab and Al Nasr oil fields southeast to the Shell 
discovery at An Nagyah. An exploration well is planned for this 
area in early 2002. The proposed Harmel #2 appraisal well will be 
designed to test and evaluate the shallow oil zones encountered in
Harmel #1. It is anticipated that Harmel #2 will be drilled in 
conjunction with the exploration drilling program during the first
quarter of 2002 to save costs. Assuming Harmel #2 encounters 
similar oil reservoirs to Harmel #1, a pilot project is planned to
complete and equip both Harmel #1 and #2 for longer-term 
production to determine the feasibility of a full-scale commercial
development. Although the production rates are low by Yemen 
standards, the Harmel structure's size and the shallow drilling 
depth greatly improve the economics of a potential development. 
The gas condensate discovery at An Naeem #1 and #2 will be further
evaluated during 2001 to determine if an oil rim does indeed exist
down dip. TransGlobe's management continues to view Block S-1 as 
highly prospective for large oil accumulations and will focus a 
significant amount of exploration effort on the area. It will take
several years to evaluate the potential of Block S-1 due to the 
size of the block and the numerous potential reservoir zones. 

In Canada, the Company participated in an exploratory multi-zone 
gas test at Morningside in central Alberta. The well (37.5% 
working interest) was cased as a potential gas well. In May 2001, 
TransGlobe took over operatorship and acquired the balance of the 
interest in the joint lands (1,400 net acres) and increased its 
working interest in the well to 60%. In addition to re-completing 
the well  the Company plans to re-enter a suspended well for 
Mannville gas production during the second quarter.  The wells 
could be tied in for production during the third quarter. 
Additional drilling on the 100% acreage will be contingent upon 
the re-completion activities.   At Elk Island in Central Alberta, 
the Company acquired an additional 1,980 acres (990 net acres) of 
land.  A multi-zone exploratory gas well (50% working interest) is
scheduled to be drilled in the second quarter of 2001. The Company
has assembled acreage on gas prospects at Cherhill, Thorsby, 
Rimbey, Fort Kent and Wrentham.  During 2001, the Company plans to
either drill or farm out these prospects. 

Mary Chandler, Vice President, Finance and Chief Financial 
Officer, has informed the Company of her intent to resign her 
position at the end of June. On behalf of the board, management 
would like to thank Ms. Chandler for her contributions over the 
years and wishes her success in her future endeavors. The Board 
welcomes Dave Ferguson to the management team as Vice President, 
Finance and Chief Financial Officer. Mr. Ferguson is a chartered 
accountant and has over 18 years' experience in the oil and gas 
industry with public and private companies. 

This release includes certain statements that may be deemed to be 
"forward-looking statements" within the meaning of the US Private 
Securities Litigation Reform Act of 1995.  All statements in this 
release, other than statements of historical facts, that address 
future production, reserve potential, exploration drilling, 
exploitation activities and events or developments that the 
company expects are forward-looking statements.  Although 
TransGlobe believes the expectations expressed in such 
forward-looking statements are based on reasonable assumptions, 
such statements are not guarantees of future performance and 
actual results or developments may differ materially from those in
the forward-looking statements.  Factors that could cause actual 
results to differ materially from those in forward-looking 
statements include oil and gas prices, exploitation and 
exploration successes, continued availability of capital and 
financing, and general economic, market or business conditions.  


TransGlobe Energy Corporation
Ross G. Clarkson, President & C.E.O.
(403) 264-9888
(403) 264-9898 (FAX)


TransGlobe Energy Corporation
Lloyd W. Herrick, Vice President & C.O.O.
(403) 264-9888
(403) 264-9898 (FAX)

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