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Release

TransGlobe Energy Corporation Announces Oil Discovery in Republic of Yemen

CALGARY, ALBERTA--TransGlobe Energy Corporation (TSE symbol "TGL";
OTC-BB symbol "TGLEF") announced the results of testing of the 
Harmel #1 exploration well on Block S-1 in the 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 Harmel #1, the 
second of four exploration wells on Block S-1 in the Republic of 
Yemen.  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 
utilising a submersible pump will be carried out to determine the 
ultimate productivity of the co-mingled zones. 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 analysed 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 
commerciality. 

Several deeper zones were also tested in Harmel #1 however no 
significant hydrocarbons were recovered.  The completion rig is 
now being moved to the  An Naeem #2 well to carry out testing on a
potential oil zone in the Alif formation.  The An Naeem #1 well 
flow tested at a combined rate of 40 million cubic feet per day of
gas and 1,020 barrels per day of condensate from the Alif 
formation. No water was recovered during the test period.  The An 
Naeem #2 well was drilled to test for the existence of an oil rim 
down dip of the gas and condensate tested in the An Naeem #1 well.
Following testing on An Naeem #2 the rig will be moved to Fordus 
#1 to carry out testing on several indicated oil zones. 

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  

TRANSGLOBE ENERGY CORPORATION 

Ross G. Clarkson 

President & CEO 

-30-

TransGlobe Energy Corporation
Ross G. Clarkson, President & CEO
(403) 264-9888
(403) 264-9898 (FAX)
Website: www.trans-globe.com
E-mail: trglobe@trans-globe.com

or

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

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