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TransGlobe Energy Corporation Announces Successful Prospectus Unit Offering

CALGARY, ALBERTA--TransGlobe Energy Corporation (TSE symbol "TGL";
OTC-BB symbol "TGLEF") is pleased to announce that it has closed 
the maximum offering of 4,477,612 Units of the Company at Cdn$0.67
per Unit (the "Offering) by Yorkton Securities Inc. The Offering 
was oversubscribed and the maximum offering amount of Canadian 
$3.0 million was sold.  Each Unit consists of one Common Share and
one-half of a transferable warrant. Each whole warrant will 
entitle 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, 
2002. The Toronto Stock Exchange has listed at the opening on 
Thursday, July 27, 2000 the additional 4,477,612 common shares 
forming part of the units, 2,238,806 common shares to be issued on
the exercise of the warrants and the 447,761 common shares to be 
issued on the exercise of the Agent's Compensation option. 

The proceeds from the financing will be used to fund the balance 
of the Company's share of the development program on Block 32 in 
Yemen (9.81% working interest), including the drilling of two 
additional wells on the Block.  DNO ASA, the operator of Block 32,
advises that the Tasour field development work is proceeding on 
schedule and slightly under budget.  Tasour field development 
consists of the construction of production facilities and a 65 
kilometer (40 mile) pipeline to connect with Canadian Occidental's
export pipeline. Initial production of 5,000 to 7,000 bopd is 
expected in October 2000 (approximately 500 to 700 bopd to 

These securities will not be registered under the US Securities 
Act of 1933 and may not be offered or sold in the United States 
absent registration or an applicable exemption from registration 

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
(403) 264-9898 (FAX)

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