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TransGlobe Energy Corporation Announces Third Quarter Results

CALGARY, ALBERTA--TransGlobe Energy Corporation ("TransGlobe" or 
"the Company") (TSE, symbol "TGL"; NASD OTC-BB symbol "TGLEF") is 
pleased to announce its financial and operating results for the 
nine months ended September 30, 2000. All dollar values are 
expressed in United States dollars unless otherwise stated.  


* Tasour production start up on Block 32, Republic of Yemen 

* Tasour development construction completed on time and under 

* Acquisition of additional working interest in Block 32, Republic
of Yemen 

* Harmel #1 oil discovery in Block S-1, Republic of Yemen 

* An Naeem #2 encountered an interpreted gas cap, Block S-1 

* Two gas discoveries in Alberta, Canada 

* Prospectus offering closed 


Block 32, Republic of Yemen (13.8% working interest) 

The Tasour field commenced production operations on November 3, 
2000, marking the culmination of four years of exploration and 
development effort on Block 32 by the Company. Tasour field 
production is currently at 7,000 barrels of oil per day ("Bopd"), 
representing 970 Bopd to TransGlobe.  

The Tasour #4 well was drilled in the third quarter to a total 
depth of 1,757 meters (5,765 feet) and flowed at 2,500 barrels per
day of 29 degree API oil on a submersible pump test from the Qishn
sand reservoir. No water was recovered during the test.  The 
Tasour D well commenced drilling during the third quarter and was 
subsequently plugged and abandoned as no hydrocarbons were 
encountered.  The well tested an exploration structure separate 
from the main Tasour field now on production.  Plans are underway 
to drill another well on Block 32 prior to year end. 

On November 15, 2000, the Company announced signing a letter 
agreement to purchase an additional four percent working interest 
in Block 32 for a total of $2.13 million.  The transaction is 
effective January 1, 2000 and will increase TransGlobe's working 
interest to 13.81087 percent on the entire Block, including the 
producing Tasour field.  The purchase also includes the 
proportionate historical cost pools attributable to the interest 
acquired.  The Company is required to make an initial payment of 
the $1.17 million at closing to be financed with available cash 
and bank debt.  Additional payments totaling $960,000 are due upon
reaching cumulative gross production targets of 7 million to 12 
million barrels of oil.  The purchase agreement and assignment of 
interest is subject to approval by the Ministry of Oil and Mineral
Resources in the Republic Yemen.  

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

Production testing continued on Block S-1 throughout the third 
quarter. The operator of the Block, Vintage Petroleum Yemen Inc. 
("Vintage" - VPI NYSE), a 100% subsidiary of Vintage Petroleum 
Inc., completed testing Harmel #1, the second of four exploration 
wells on Block S-1. Three separate zones, previously untested in 
the region, were swab tested at a combined rate of 500 barrels per
day of clean oil after acid stimulation.  A longer-term production
test utilizing a submersible pump will be carried out, following 
the Fordus #1 testing program, to further evaluate the 
productivity and reservoir quality. The medium gravity sweet crude
was encountered in three separate zones between 485 to 750 meters 
(1,600 to 2,500 feet).  A structural closure of up to 25 square 
kilometers (10 square miles) is estimated from 3-D seismic data.  

TransGlobe's independent engineering firm, Fekete Associates Inc.,
has analyzed the seismic, well data and test results and conducted
a probabilistic volumetric estimate of the hydrocarbons in-place 
for the three zones tested in the Harmel structure.  The potential
in-place hydrocarbon volume for all three zones ranges from 97 
million barrels to 660 million barrels in-place with a most likely
estimate (50% probability) of 253 million barrels in-place.  
Appraisal drilling and well testing will be required to determine 
reservoir continuity and productivity. The additional data is 
required to estimate recoverable reserves and to determine 

An Naeem #2, the fourth exploration well on Block S-1, was drilled
and tested through the targeted Alif zone to a total depth of 
1,424 meters (4,670 feet) to evaluate the possible existence of an
oil rim approximately 50 meters (165 feet) downdip of the An Naeem
#1 well drilled earlier this year.  The An Naeem #2 well 
encountered approximately 36 meters (120 feet) of net pay in the 
Alif formation.  The Alif zone tested at a combined daily flow 
rate of 27.7 million cubic feet ("MMcf") of gas and 880 barrels of

Although the flow rates associated with the test results are 
evidence of the excellent reservoir properties that characterize 
the Alif sands, there is currently no commercial market for 
natural gas in the Republic of Yemen.  The characteristics of the 
gas and condensate tested are similar to that in the gas cap at 
the Halewah field and those encountered in the An Naeem #1 well.  
The adjacent Halewah field currently produces 15,000 Bopd from an 
oil rim under a gas cap in the Alif formation. 

The An Naeem #1 well was drilled earlier this year to evaluate a 
possible extension of the Halewah field identified on 3-D seismic 
acquired in 1999.  The An Naeem #1 well encountered approximately 
30.5 meters (100 feet) of net pay in the Alif zone and 
approximately 12.2 meters (40 feet) of potential pay in an upper 
dolomite section.  Testing of the Alif zones revealed combined 
daily flow rates of 40 MMcf of gas and 1,020 barrels of 
condensate.  Similarly, the upper dolomite interval tested daily 
rates of 7.7 MMcf of gas and 245 barrels of condensate. 

The two wells confirm the existence of a significant interval of 
hydrocarbon bearing pay in the Alif formation on the An Naeem 
structure.  A compositional analysis of the hydrocarbons obtained 
from the An Naeem #2 well will be integrated into the continuing 
technical evaluation of the An Naeem structure to determine the 
potential for the existence of an oil rim still further downdip.  
A third well in the An Naeem structure may be proposed to target 
the potential oil rim. The thicker Alif interval containing more 
net pay combined with no indication of a water contact in An Naeem
#2 provides additional support for drilling a third well.    

The operator has moved the completion rig to Fordus #1 (the third 
exploration structure drilled in the program) to test several 
potential hydrocarbon bearing zones.  It is anticipated that 
testing of Fordus #1 will be completed by year end. 

Canada and United States 

TransGlobe participated in a multi-zone gas discovery at Pakowki 
Lake in southern Alberta.  The well will be tied in to a nearby 
gas gathering system prior to year end.  Production rates are 
expected to be in excess of 1.0 MMcfpd. The Company has a 33.3% 
working interest in the discovery. TransGlobe also drilled a 
multi-zone exploration gas discovery at 10-29 on an Elk Island 
prospect in central Alberta.  The well is currently being 
completed and will be tied in to a nearby gas gathering system 
prior to year end. Initial production rates are expected to be in 
excess of 1.0 MMcfpd. TransGlobe has a 50% working interest in the
discovery. The Company plans to drill an exploration well on its 
Morningside gas prospect in Central Alberta during the fourth 

TransGlobe Oil and Gas Corporation, a wholly owned subsidiary of 
TransGlobe, sold all of its U.S. production for gross proceeds of 
$600,000 effective November 1, 2000.  The production sold totaled 
50 barrels of oil equivalent per day ("Boepd") to the Company.  
The funds will be reinvested in core focus areas in Yemen and 



                             Three Months Ended   Nine Months Ended
                                 Sept. 30              Sept. 30
      Production               2000     1999       2000       1999
Oil and liquids (Bopd)          125      156        108        121
Gas (Mcfpd)                     596      875        438        473
Total (Boepd)                   185      243        152        168
Oil and gas revenue net
 of royalties              $415,792 $357,364   $904,524   $611,580
Cash flow from operations    74,623  122,798    (83,716)   (27,384)
Net loss                   (299,027)  (3,502)  (634,660)  (260,184)
  Basic per share             (0.01)       -      (0.02)     (0.01)
Capital expenditures -
 Canada                     231,973  327,763    598,588    341,349
Capital expenditures -
 United States              (10,744)  19,530     15,440     (1,961)
Capital expenditures -
 Yemen                   $1,648,667 $661,707 $2,297,358 $1,419,627
                                                As at        As at
                                             Sept. 30,     Dec. 31,
                                                 2000         1999
Debt                                      $         -  $   748,405
Common shares outstanding
  Basic                                    49,789,040   33,417,244
  Fully diluted                            58,269,029   38,977,558



Production from Canada and the United States averaged 185 Boepd 
for the third quarter of 2000 compared to 243 Boepd in the 
comparable period in 1999. The lower production was attributable 
primarily to curtailed Camao gas production and natural production
declines in the Montana and Nevis properties. It is anticipated 
that new gas production from recent drilling activity at Pakowki 
Lake and Elk Island, combined with production increases at Camao, 
will result in a year end exit rate of approximately 300 Boepd for
Canada after the sale of the United States production. 

Operating Results (expressed in United States dollars unless 
otherwise stated) 

Revenue net of royalties was $415,792 for the three months ended 
September 30, 2000, an increase from $357,364 in the comparable 
period. Although there was a 24% decline in production from 1999, 
revenue net of royalties increased from the previous period due to
significant increases in both oil and gas prices. The average oil 
price for the third quarter of 2000 increased to $29.19 per barrel
compared to $18.87 per barrel for the equivalent period in 1999. 
The average natural gas price for the third quarter in 2000 was 
$3.69 per million cubic feet ("Mcf") compared to $1.87 per Mcf in 
the comparable period. 

The netback per barrel of oil equivalent ("Boe") was $18.78 during
the three months ended September 30, 2000. The comparable figure 
for the same period in 1999 was $12.25 per Boe. The increase in 
netbacks between periods is due to the increase in oil and gas 
prices which more than offset the unit cost increase of royalties 
and operating costs.  The increase in royalty cost related to 
higher commodity prices and a lower Alberta royalty tax rebate 
rate. The increase in operating costs per unit was due to 
workovers on wells in the United States and lower production. 

General and administrative expenses in the third quarter 2000 
included an amount of $310,000 representing the settlement of a 
claim from a shareholder in the State of Florida. The 
shareholder's claim related to a 1996 private placement 
transaction concluded by previous management. TransGlobe issued 
500,000 common shares of the company, 1,500,000 warrants and cash 
of $75,000 to satisfy the settlement. Each warrant entitles the 
holder to purchase one common share of the company for $0.47 per 
common share until September 8, 2002.  The exercise price of the 
warrants represents the market price of the common shares of the 
Company at the time the settlement was negotiated. 

Capital Expenditures 

In Yemen the Company incurred $1,648,667 in capital expenditures 
for the three month period ended September 30, 2000 on Block 32 
and Block S-1. Block 32 expenditures related to the Tasour 
development program and drilling expenditures for Tasour #4 and 
Tasour D wells.  Block S-1 expenditures represent TransGlobe's 25%
working interest in the fourth well, An Naeem #2. For the three 
month period ended September 30, 1999 the Company incurred 
$661,707 in capital expenditures in Yemen related to drilling 
appraisal wells on Block 32.  Capital expenditures of $231,973 
incurred in Canada in the third quarter 2000 were primarily to 
drill wells at Pakowki Lake and Elk Island. Canadian activity in 
the comparable period was related primarily to costs of drilling a
gas well at Rimbey. Capital expenditures in the United States were
minimal in both periods, as the domestic focus has shifted to 

Financing Activities 

In July TransGlobe closed a prospectus offering of 4,477,612 Units
of the Company at Cdn$0.67 per Unit ("the Offering). The Offering 
was over-subscribed and the maximum offering amount of Cdn$3.0 
million was sold.  Each Unit consisted of one common share and 
one-half of a transferable warrant. Each whole warrant entitles 
the holder to purchase one common share of the Company for 
Cdn$0.85 until January 27, 2001, and Cdn$1.15 until January 27, 

TransGlobe completed an arm's length private placement in August, 
2000 for 875,000 units at $0.40 per unit for gross proceeds of 
$350,000. Each unit consisted of one common shares and one 
warrant. Each warrant entitles the holder to purchase one common 
share of the Company for $0.50 per share, expiring on August 25, 

Most of the warrants issued in a private placement during the 
summer of 1999 were exercised prior to expiry on August 20, 2000. 
Warrants to purchase 2,231,495 common shares of the Company at an 
exercise price of Cdn$0.60 provided gross proceeds in the amount 
of Cdn$1,338,897. 

The proceeds from the financings and the exercise of the warrants 
will fund TransGlobe's share of the capital commitments on Block 
S-1 and Block 32 for the remainder of the year.  


The start of Tasour production on Block 32 is a turning point for 
TransGlobe. The new Tasour production, combined with an increased 
interest in Block 32 and recent drilling success in Canada, will 
substantially increase the Company's cash flow going forward. If 
current oil prices persist the Company's Yemen operations on both 
Block 32 and Block S-1 can be internally funded from cash flow in 
2001.  The Company intends to reinvest all Block 32 revenue into 
the Yemen projects where TransGlobe has the ideal combination of 
large land positions, numerous prospects and low operation costs. 
Additional drilling of development and exploration wells to 
increase production rates is planned for Block 32. The initial 
results from Block S-1 are very encouraging and will in all 
likelihood lead to the start of a commercial development in 2001. 
TransGlobe's management is excited to be involved in these world 
class projects and looks forward to contributing to the common 
goal of adding to shareholder value.    

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. 

On behalf of the Board of Directors of 


Lloyd W. Herrick, 

Vice President & COO 


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


TransGlobe Energy Corporation
Lloyd Herrick, Vice President & COO
(403) 264-9888

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