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TransGlobe Energy Corporation Announces Prospectus Unit Offering

CALGARY, ALBERTA--TransGlobe Energy Corporation (TSE symbol "TGL";
OTC-BB symbol "TGLEF") is pleased to announce that it has received
a final receipt for a prospectus dated July 4, 2000 for a best 
efforts offering of a maximum of 4,477,612 Units and minimum of 
2,238,806 Units of the Company at Cdn$0.67 per Unit ("the 
Offering") from the BC, Alberta and Ontario Securities 
Commissions. 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 six months from the closing and Cdn$1.15 until 18 months 
from the Closing.  

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. Approximately 95% of the pipeline has been built.
Completion of the Tasour Central Production facility and the 
export pipeline connection is expected in early September 2000.  
Initial production of 5,000 to 7,000 bopd is expected in October 
2000 (approximately 500 to 700 bopd to TransGlobe). 

On June 15th the Block 32 partnership approved a two well drilling
program planned for the fourth quarter of 2000.  Depending on the 
results of the development wells, production could increase to 
10,000 to 15,000 bopd (approximately 1,000 to 1,500 bopd to 
TransGlobe) by early 2001.  

TransGlobe has a 25% working interest in Block S-1; the other 75% 
is being earned by the operator of Block S-1, Vintage Petroleum 
International Inc. a 100 percent subsidiary of Vintage Petroleum 
Inc. (NYSE symbol "VPI").  Vintage has recently commenced drilling
the third earning well (Fordus #1). It is expected at the 
completion of the Fordus #1 well, Vintage will have satisfied its 
earning commitments pursuant to the farm-in agreement and 
TransGlobe will be required to fund its 25% working interest of 
any further exploration/development work. Vintage and TransGlobe 
have expanded the current drilling campaign to four wells, subject
to Ministry of Oil and Mineral Resources approval.  The fourth 
well will be drilled on the An Naeem structure, down dip of the An
Naeem #1 discovery well.  An Naeem #1 tested 40 MMcfd and 1,020 
barrels of condensate per day.  Analysis of the well test results 
strongly supports the presence of oil in a structurally lower 
position than was tested in An Naeem #1. The An Naeem #2 well will
be drilled immediately following the Fordus #1 well.  Based on 
preliminary results to date, it appears likely that additional 
wells and 3D seismic will be required to appraise the two 
discoveries and further evaluate the Block's potential.  

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  


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
(403) 264-9898 (FAX)

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