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TransGlobe Energy Corporation Announces Results of its An Naeem # 2 Exploration Well in the Republic of Yemen

CALGARY, ALBERTA--TransGlobe Energy Corporation (TSE symbol "TGL";
OTC-BB symbol "TGLEF") announces the results of its An Naeem #2 
exploration well on Block S-1, Republic of Yemen.   

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

Vintage Petroleum Yemen Inc., a 100% subsidiary of Vintage 
Petroleum Inc., ("VPI" NYSE) has completed testing An Naeem #2, 
the fourth exploration well on Block S-1 in the Republic of Yemen.
 The An Naeem #2 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 rates of 27.7 million cubic feet (Mmcf) of gas
and 880 barrels of condensate.  

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 nearby Halewah field, which produces from the Alif formation 
on the adjacent concession, currently produces 15,000 barrels of 
oil per day from an oil rim under a gas cap. 

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 million cubic feet (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 

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 with no indication of a water contact encountered in An 
Naeem #2 provides additional support for drilling a third well.   

Currently, the operator plans to test the previously drilled 
Fordus well followed by a longer-term production test of the 
Harmel #1 well. As previously announced, the Harmel #1 initially 
swab tested at a combined rate of 500 barrels of oil per day 
(Bopd) of 20 degrees API gravity oil from three shallow zones.  
Efforts are underway to move the completion rig used on the An 
Naeem #2 well to the Fordus well. Vintage is operator of the 
project and has a 75 percent interest in the S-1 Damis Block.  

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 


Ross G. Clarkson, 

President & CEO 


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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