Stock Quote:
TGL  $ 3.18  $ 0.12
TGA  $ 2.39  $ 0.08
BZQ18  $ 75.71  $ 2.66


TransGlobe Energy Corporation Announces 2000 Year End Results and Operations Review

CALGARY, ALBERTA--TransGlobe Energy Corporation (TSE, symbol 
"TGL"; OTC-BB symbol "TGLEF") announces its financial and 
operating results for the year ended December 31, 2000. The 
Company changed its year end from September 30 to December 31, 
effective in 1999, therefore the 1999 year is for the fifteen 
month period ended December 31.  All dollar values are expressed 
in United States dollars unless otherwise stated. 


* 50% increase in proven reserves 

* 800% increase in production during 2000 

* First oil production from the Tasour field on Block 32, Republic
of Yemen  

* Additional 4% working interest acquired in Block 32, Republic of

* Seven wells drilled in Yemen resulting in two oil wells, an oil 
discovery and a gas condensate discovery. 

* Four new gas wells brought into production in Canada 

* U.S. properties sold, proceeds reinvested in Republic of Yemen 


Block S-1, Republic of Yemen (25% working interest) 

Following the 1999 3-D seismic program on Block S-1, exploration 
drilling commenced early in 2000. Vintage Petroleum International 
Inc., a 100 percent subsidiary of Vintage Petroleum Inc. ("VPI" 
NYSE), the operator of the project, drilled four wells in the 
first exploration period with very encouraging results. Two wells 
were drilled into a large gas condensate pool with excellent 
reservoir quality. There are geochemical indications that a 
potential oil rim exists downdip from the gas condensate. 
Additional drilling is required to determine if an oil rim is 
indeed present on the An Naeem structure, similar to the adjacent 
Halewah field which produces 15,000 barrels of oil per day 
("Bopd") from an oil rim down dip of a large gas cap.   

The second exploration well, Harmel #1, encountered medium gravity
oil in three shallow zones. The well was recently pump tested 
using a variable speed hydraulic pump. The test yielded combined 
daily production ranging between 180 and 470 barrels of oil. The 
medium gravity sweet crude was tested from three separate zones 
between 465 to 673 meters (1,526 to 2,208 feet). The Ministry of 
Oil and Mineral Resources ("MOMR") has recently approved a nine 
month extension to the First Exploration Period to allow Vintage 
and TransGlobe to drill an appraisal well on the Harmel structure 
and to carry out longer term production testing. The appraisal 
well will provide the additional reservoir information necessary 
to determine if sufficient reserves exist to establish 
commerciality. Should development proceed, as many as forty 
additional shallow wells could be required to exploit the 
structure fully. A structural closure of up to 25 square 
kilometers (10 square miles) can be mapped on good quality 3-D 
seismic data. The Harmel #1 discovery is located approximately 10 
kilometers (6 miles) from the nearest pipeline tie-in point. The 
combination of shallow drilling depths and nearby pipeline 
facilities will enhance development economics significantly.  

Production testing of Fordus #1, the third exploration well on 
Block S-1, was completed in December 2000. Four separate zones 
were tested without recovering any significant hydrocarbons. The 
Fordus #1 well was subsequently plugged and abandoned. 

In addition to potential follow-up drilling locations at An Naeem,
Harmel and the Shell discovery at An Nagyah, TransGlobe has 
identified more than twenty additional undrilled prospects and 
leads utilizing 2-D and 3-D seismic on the 1,100,000 acre Block. 
The 2001 exploration program will encompass the acquisition of 230
square kilometers of new 3-D seismic to be followed by one 
exploration well in 2001 and additional drilling in 2002. The 
Second Exploration Period of 2.5 years will commence in March 
2002. The 2001 seismic and drilling program will partially satisfy
the Second Exploration Period work commitments. A production 
period of twenty years could be entered into should Vintage and 
TransGlobe wish to proceed with development of an oil field.  

Block 32, Republic of Yemen (13.81% working interest) 

The Block 32 joint venture group drilled two wells during 2000, 
resulting in one oil well at Tasour #4 and a dry hole at Tasour D.
The Tasour #5 well, which was drilling at year end, was 
subsequently completed as an oil well. 

The Block 32 development construction was completed during 2000 
and the Tasour field was placed on production in November 2000. 
The project cost came in 15% under budget and is the fastest field
development ever done in the Republic of Yemen. Production 
averaged 6,350 Bopd (875 Bopd net to TransGlobe) for the two 
months ended December 31, 2000. Production in 2001 is expected to 
average 7,200 Bopd (994 Bopd to TransGlobe). The development 
project consisted of the construction of an 8 inch diameter 
pipeline, 40 miles in length, and production facilities. The 
Tasour central production facilities are designed to process 
15,000 Bopd, but can be expanded to match the 8 inch pipeline 
capacity of 25,000 Bopd for a relatively small incremental 
investment. The Development Area, which is approximately 570 
square kilometres (220 square miles), encompasses all of the 
Tasour structure as well as eleven additional prospects identified
to date that could be drilled in the future. The 
development/production period will extend until 2020 with an 
optional five year extension. 

TransGlobe's independent engineering consultants, Fekete 
Associates Inc. of Calgary, have assigned proven plus probable 
reserves of 6.6 million barrels (914,200 barrels net to 
TransGlobe) for the Tasour "B" structure in their evaluation dated
January 1, 2001. This is essentially unchanged from the previous 

The Company expanded its interest in Block 32 by purchasing an 
additional four percent working interest for a total of 
$2,136,163. The transaction was effective January 1, 2000 and 
increased the Company's working interest to 13.81087%. The Company
made an initial payment of $1,176,163. A potential future 
obligation totaling $960,000 will be due in six payments of 
$160,000 for each cumulative million barrels of gross oil 
production commencing at 7 million barrels to a maximum of 12 
million barrels of oil from the Block. The purchase agreement and 
assignment of interest is subject to approval by MOMR in the 
Republic of Yemen. 

The Block 32 partnership plans to expand the production from the 
Development area during the coming years. There are currently 
eleven prospects and leads identified on the mapping of the 2-D 
seismic grid. A new 2-D seismic acquisition program of 120 
kilometers is planned to commence in June 2001. This program is 
expected to refine the drilling locations on three to four 
prospects located in the northwest area of Block 32. A drilling 
program consisting of one development well in the Tasour field and
one exploration well is planned for the fourth quarter of 2001. A 
successful development well will maintain production levels in the
Tasour field and deplete the pool efficiently. If the new 
exploration drilling proves successful then a fast track tie-in to
the Tasour facilities could raise production levels significantly 
in 2002.  


During 2000, the Company drilled four wells resulting in three gas
wells and one dry hole. One well was drilling at year end and was 
cased as a potential gas well in 2001. Additional activities 
included several well workover/re-activations and two 

Canadian production averaged 119 barrels of oil equivalent per day
("Boepd") in the year 2000, with a December exit rate of 180 Boepd
(60% gas at 10:1). 

The proven reserves were increased by 143% from 206 thousand 
barrels of oil equivalent (Mboe) to 502 Mboe, representing a 682% 
replacement of the 2000 annual production. All the reserve 
additions were natural gas and liquids which, when combined with 
the record prices for natural gas, have significantly increased 
the net present value of the Canadian reserves. On an escalated 
pricing basis, the net present value of the proven reserves 
discounted at 15% increased 400% from $1.1 million in 1999 to $5.5
million in 2000. (Using constant pricing has increased 560% from 
$1.2 million in 1999 to $8.0 million in 2000). 

TransGlobe increased its undeveloped land position to 10,000 net 
acres and generated a number of drillable gas prospects within its
Canadian core focus area in central Alberta. The Company has 
budgeted to drill several gas prospects during the year 2001, in 
addition to planned re-entries and workovers. TransGlobe is well 
positioned to profit from record natural gas prices in North 
America through expanded gas production.  


During the year 2000 the Company sold all its oil and gas 
properties in the United States. The net proceeds of $606,059 were
utilitized to fund a portion of the Company's acquisition of an 
additional 4% working interest in Block 32, Yemen. Production in 
the United States averaged 42 Boepd for the year 2000 compared to 
100 Boepd in 1999. The decision to divest these assets was made in
early 2000 and the Company did not engage in any further 
development or exploration activity on these lands.   



                                  Year Ended  Fifteen Months Ended 
                                 December 31,     December 31,
                                    2000             1999
Financial                      (U.S. Dollars)   (U.S. Dollars)
  Oil and gas revenue net
   of royalties                   $2,403,266        $1,096,232
  Cash flow from operations          929,529           190,923
    Basic per share                    $0.02             $0.01
  Net income (loss)                  307,967          (232,828)
    Basic per share                    $0.01            ($0.01)
  Capital expenditures - Canada    1,118,266           527,477
  Capital expenditures - U.S.         17,909            97,266
  Capital expenditures - Yemen     4,855,141         1,821,369
  Proceeds from property disposal    606,059         1,101,945

  Debt **                                  -          $748,405
  Common shares outstanding     
    Basic                         50,500,801        33,417,244
    Fully diluted                 57,822,107        38,977,559

  Oil and liquids (bopd)                 245               121*
  Gas (mcfpd)                            548               554*
  Total (boepd)                          299               176*

*Includes acquired Moiibus production from April 28th forward.

**Redeemed on February 29, 2000 and converted to share capital


Operating Results 

The average oil price for the year 2000 was $25.68 per barrel 
compared to $15.70 per barrel for the fifteen month period ended 
December 31, 1999. The average natural gas price for 2000 was 
$3.93 per Mcf compared to $2.01 per Mcf for 1999. 

The netback per barrel of oil equivalent ("Boe") was $17.37 during
2000 and $9.87 per Boe in 1999. The increase in the netback 
between periods is attributed to the increase in commodity prices 
in the year 2000.  

Financing Activities 

The Company financed the Block 32 development program and 
exploration program on Block S-1 with proceeds from three equity 
issues, the sale of the United States properties and the exercise 
of warrants due in 2000.  

The Company has a $760,000 revolving loan facility and a $665,000 
non-revolving acquisition facility with a Canadian chartered bank.
At December 31, 2000, $77,634 was drawn on the revolving loan 

Based on current projections, all of the 2001 capital program can 
be funded from cash flow and the undrawn loan facility. 

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. 


Ross G. Clarkson 

President & C.E.O. 


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


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

View Print Version