Release
TransGlobe Energy Corporation Announces Successful Wells in Yemen and Canada
CALGARY, ALBERTA--TransGlobe Energy Corporation (TSE, symbol "TGL"; NASD OTC-BB symbol "TGLEF") is pleased to announce today a successful development well in the Tasour field located on Block 32 in the producing Sayun Basin in the Republic of Yemen and a successful multi-zone gas discovery in Canada. BLOCK 32, REPUBLIC OF YEMEN (9.81% working interest) The Tasour 4 well was drilled 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 well has been completed as a producer and will be tied in to the adjacent Tasour production facilities. The drilling rig was moved to the Tasour 'D' location and commenced drilling on September 19th. Results from Tasour 'D' are anticipated by the end of October 2000. The construction of the Tasour production facilities is nearing completion. The 65 kilometer pipeline to the Canadian Occidental production facility is completed and the connection to the sales pipeline is underway. Small delays in the delivery of equipment will postpone the start of oil sales by 2-3 weeks to the end of October 2000. Initial production rates are expected to be 10,000 bopd (1,000 net to TransGlobe) with the addition of the Tasour 4 well. Production could increase to 12,000 to 15,000 bopd (1,200 to 1,500 to TransGlobe) with success at Tasour 'D'. CANADA TransGlobe has participated in a multi-zone gas discovery at Pakowki Lake in southern Alberta. The well is currently being completed and will be tied in to a nearby gas gathering system. Production rates are expected to be in excess of 1.0 mmcfd. TransGlobe has a 33.3% working interest in the discovery. The Company plans to drill two new gas prospects in Central Alberta during the 4th quarter. 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 & C.E.O. -30-
TransGlobe Energy Corporation
Ross G. Clarkson
President & C.E.O.
(403) 264-9888
(403) 264-9898 (FAX)
or
TransGlobe Energy Corporation
Lloyd W. Herrick
Vice President & C.O.O.
(403) 264-9888
Website: www.trans-globe.com
E-mail: trglobe@trans-globe.com
Ross G. Clarkson
President & C.E.O.
(403) 264-9888
(403) 264-9898 (FAX)
or
TransGlobe Energy Corporation
Lloyd W. Herrick
Vice President & C.O.O.
(403) 264-9888
Website: www.trans-globe.com
E-mail: trglobe@trans-globe.com