Stock Quote:
TGL  $ 2.00  $ 0.00
TGA  $ 1.58  $ -0.03
BZZ17  $ 57.89  $ 0.66

Release

TransGlobe Energy Corporation Announces Proposed Unit Offering and First Quarter Results

CALGARY, ALBERTA--TransGlobe Energy Corporation ("TransGlobe" or 
"the Company") (TSE, symbol "TGL"; NASD OTC-BB symbol "TGLEF") is 
pleased to announce that it has entered into a letter of intent 
with a Canadian investment dealer for a best efforts offering and 
announces its financial and operating results for the three months
ended March 31, 2000. All dollar values are expressed in United 
States dollars unless otherwise stated.  

PROSPECTUS OFFERING 

TransGlobe entered into a letter of intent with a Canadian 
investment dealer for a best efforts offering, and filed a 
preliminary prospectus for, a maximum of Cdn$3,000,000 and minimum
of Cdn$1,500,000 worth of Units of the Company ("the Offering") 
with the British Columbia, 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. The Offering 
will be priced in the context of the market, subject to the 
approval of The Toronto Stock Exchange, within a few weeks, upon 
clearance of the prospectus by the securities commissions. 

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, including the drilling of two additional wells on the 
Block.  

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 
requirements.  

HIGHLIGHTS FOR THE QUARTER 

* Development program underway on Block 32, Republic of Yemen, 
first oil production expected in October, 2000 

* Exploration drilling program in progress on Block S-1, Republic 
of Yemen 

* Rights offering completed  

* Convertible debentures redeemed for Common Shares 

EXPLORATION UPDATE 

Block 32, Republic of Yemen (9.8% working interest) 

DNO ASA, the operator of Block 32, is proceeding on schedule with 
the approved development plan for the Tasour field. The Tasour 
development plan consists of the construction of production 
facilities and a 65 kilometer (40 mile) pipeline to connect with 
Canadian Occidental's export pipeline. Initial production is 
targeting 5,000 to 7,000 barrels of oil per day ("Bopd") 
(approximately 500 to 700 Bopd to TransGlobe) from the two 
existing Tasour oil wells (Tasour #1 & #3).  First oil sales are 
expected in October of 2000. 

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

The operator of Block S-1, Vintage Petroleum Inc. ("Vintage") 
("VPI" NYSE), has completed testing of the first well at An Naeem 
# 1, as part of a three well exploration program.  The well was 
drilled to a total depth of 1,612 meters (5,288 feet) to evaluate 
a possible extension of the Halewah field, which produces from the
Alif formation on the adjacent concession.  The Halewah field 
currently produces 25,000 Bopd from an oil rim under a significant
gas cap.  The An Naeem #1 well encountered approximately 30.5 
meters (100 feet) of net pay in two Alif zones.  The well flow 
tested at a combined rate of 40 MMcfd of gas and 1,020 barrels per
day of condensate on a 40/64 inch choke from two intervals in the 
Alif zone. The upper 11 meters (36 feet) of potential Alif gas 
pay, which also had excellent open hole log characteristics, was 
not tested.  No water was recovered during the test period.  The 
flow rates associated with the test results are evidence of the 
excellent reservoir properties that characterize the Alif sands. 
The characteristics of the gas and condensate tested at An Naeem 
#1 are similar to the gas cap in the Halewah field. In addition, 
Vintage successfully tested 7.7 MMcf/d of gas and 245 barrels per 
day of condensate from a newly identified dolomite zone above the 
Alif zone. An evaluation of data obtained from the well is 
underway to determine the potential for the existence of an oil 
rim downdip on the An Naeem structure, as exists in the adjacent 
Halewah field.  

The drilling rig has been moved from An Naeem #1 to the second 
location, Harmel #1, to test a separate Alif prospect. The Harmel 
#1 well spud on May 19, 2000 and will be drilled to a depth of 
1,900 meters (6,234 feet). The third well of the program will be 
drilled on either an Alif prospect at Fordus, a step out on the 
discovery made at An Nagyah by Shell Oil Company in the early 
1990's, or a new well to test the existence of an oil pool downdip
on the An Naeem structure.  Any new discoveries will result in 
additional wells being added to the program. 


/T/

FINANCIAL AND OPERATING UPDATE
 
----------------------------------------------------------------
                                              Three months ended
                                                    March 31
                                         -----------------------
Financial                                      2000         1999
----------------------------------------------------------------
  Oil and gas revenue net of royalties   $  266,815   $   48,554
  Cash flow from operations                 (42,655)    (132,916)
         Basic per share                      $0.00        $0.00
  Net loss                                 (140,449)    (153,916)
         Basic per share                      (0.00)       (0.01)
  Capital expenditures - Canada             200,243        4,315
-----------------------------------------
  Capital expenditures - United States        1,765        3,420
  Capital expenditures - Yemen           $  219,790   $  258,859
                                         -----------------------
                                              As at        As at
                                           March 31, December 31,
                                               2000         1999
                                         -----------------------
  Debt                                   $        -   $  748,405
  Common shares outstanding 
     Basic                               41,554,933   33,417,244
     Fully diluted                       46,411,350   38,977,558
Production
----------------------------------------------------------------
  Oil and liquids (bopd)                        108           70
  Gas (mcfpd)                                   412           31
  Total (boepd)                                 149           73
----------------------------------------------------------------

/T/

Production 

Production from Canada and the United States averaged 149 barrels 
of oil equivalent per day (Boed) in the first quarter of 2000 
compared to 73 Bopd from the United States in the three month 
period ended March 31, 1999, the comparable period. The Canadian 
properties were acquired when the Company purchased Moiibus 
Resource Corporation ("Moiibus") in April 1999. Production during 
the first quarter 2000 was lower than expected due to shut in 
production at Camao and Montana.  At Camao approximately 30 Boed 
was shut in due to increased gas gathering system pressures.  The 
operator has accelerated plans to install booster compression and 
anticipates startup this summer.  In Montana production was 
curtailed because the Prevost #1 well was flowing intermittently. 
With the installation of pumping facilities the operator expects 
to have production restored to 15-25 Bopd, net to TransGlobe, by 
the end of May.  

Operating Results 

Revenue net of royalties was $266,815 for the first quarter 2000, 
an increase from $48,554 in the comparable period. The increase is
due to the addition of the Canadian properties from the 
acquisition of Moiibus and from significant increases in both oil 
and gas prices. The average oil price for the first quarter ended 
March 31, 2000 increased to $26.53 per barrel as compared to 
$10.32 per barrel for the quarter ended March 31, 1999. The 
average natural gas price for the 2000 first quarter was $2.01per 
Mcf compared to $1.66 per Mcf in the comparable period. 

The netback per barrel of oil equivalent ("Boe") was $13.21 during
the quarter. The comparable figure for the same period in 1999 was
$2.06 per Boe. The increase in netbacks between periods is 
primarily due to the significant increase in oil and gas prices. 

Capital Expenditures 

In Yemen, the Company incurred $219,790 in capital expenditures 
for the three month period ended March 31, 2000. These costs were 
primarily related to the seismic program and commencement of the 
Tasour development program on Block 32. For the three month period
ended March 31, 1999 the Company incurred $258,859 in capital 
expenditures in Yemen primarily related to the seismic acquisition
and interpretation in Block 32.  Capital expenditures of $200,243 
in Canada in the first quarter 2000 relate mainly to crown land 
purchases at Cherhill and Elk Island, completion costs at Elk 
Island, and recompletion costs on a horizontal well at Camao. 
Canadian activity in the comparable period was to acquire office 
equipment. Capital expenditures in the United States were minimal 
in both periods as the domestic focus has shifted to Canada.  

Financing Activities 

The Company completed a rights offering financing in January 2000,
and raised gross proceeds of US$935,022 by issuing 2,601,283 
shares. The proceeds from the rights offering will be used to pay 
a portion of the Company's estimated share of capital expenditures
on Block 32 for facilities and pipeline construction costs.  

The Company called all of the US$748,405 10% convertible 
debentures due January 1, 2004 (the "Debentures") for redemption 
on February 28, 2000. All holders of the US$748,405 Debentures 
elected to convert into Common Shares.  As a result, 4,989,354 
Common Shares were issued in respect of the principal and 12,957 
Common Shares in respect to accrued interest. TransGlobe currently
has 41,609,933 Common Shares outstanding. With the Debentures 
redeemed, TransGlobe has no debt outstanding and an undrawn 
revolving reducing demand loan of Cdn$1,000,000. The Company's 
credit facility will reduce by Cdn$75,000 per month commencing 
June 28, 2000. 

OUTLOOK 

2000 will be the year efforts of the Company's international focus
will begin to pay off. After many years of planning, negotiating, 
and exploration TransGlobe will experience first oil production in
Yemen on Block 32. The development drilling program will follow 
immediately with two development wells planned for the fourth 
quarter 2000. In addition, the exploratory drilling program on 
Block S-1 will be completed. The first well, An Naeem #1, 
encountered gas and condensate in a thick pay section with 
excellent reservoir qualities. This has significantly enhanced the
prospectivity of Block S-1, lending credibility that hydrocarbons 
are present on the Block. The potential exists for a significant 
oil pool lower on the An Naeem structure, which may be tested with
a well in 2000. The second well, Harmel #1, is currently drilling 
with results expected by late June. This well and the planned 
third well are targeting large exploration prospects of 50 - 100 
million barrels of oil recoverable, each having the potential to 
significantly increase corporate reserves and enhance shareholder 
value. 

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)
E-mail: trglobe@trans-globe.com
Website: www.trans-globe.com

or

TransGlobe Energy Corporation
Lloyd W. Herrick
Vice President & C.O.O.
(403) 264-9888
(403) 264-9898 (FAX)

View Print Version