Stock Quote:
TGL  $ 2.02  $ 0.02
TGA  $ 1.58  $ 0.01
BZM18  $ 73.88  $ -0.83


TransGlobe Energy Corporation Announces Drilling Success On First Well On Block S-1, Republic Of Yemen

CALGARY, ALBERTA--TransGlobe Energy Corporation (TSE symbol "TGL";
OTC-BB symbol "TGLEF") announced that the first of three 
exploration wells on Block S-1 in the Republic of Yemen, has been 
drilled and cased as a potential Alif zone oil well. 


Vintage Petroleum International Inc., a 100 percent subsidiary of 
Vintage Petroleum Inc. (NYSE symbol "VPI") operator of Block S-1, 
has drilled and cased the first well (An Naeem #1) as a potential 
Alif zone oil well.  An Naeem #1 was drilled to a total depth of 
1,612 meters (5,288 feet) to evaluate an extension of the Halewah 
field which currently produces approximately 25,000 barrels of oil
per day from the Alif zone. The An Naeem #1 well encountered what 
is interpreted on open hole logs to be 30.5 meters (100 feet) of 
potential net pay in the Alif zone.  Initial testing of the 
formation is underway to determine the existence of oil in 
commercial quantities with results anticipated in a few weeks. 

Subsequent to the testing of An Naeem #1, the drilling rig will be
moved to the second prospect (Harmel #1) to test a separate Alif 
prospect which, like the An Naeem prospect, was identified through
the interpretation of 3D seismic acquired in 1999. The Harmel well
location is approximately 8 kilometers (five miles) southwest of 
the An Naeem well. Depending upon the results of the An Naeem and 
Harmel wells, the third well of the program will be drilled either
on the Fordus prospect or on a prospect that is an offset to the 
An Nagyah well drilled by Shell in the early 1990's.  The An 
Nagyah #1 well encountered apparent gas and oil zones in the 
sub-salt Lam formation.  

The first three wells are targeting prospects with a combined 
gross reserve potential of  100 million barrels of recoverable 
oil. Depending upon the results of the first three wells, 
additional wells may be added to the current drilling program to 
appraise discoveries. 

Block S-1 is strategically adjacent to the Yemen Hunt Oil Co. and 
Jannah Hunt (a subsidiary of Yemen Hunt Oil Co.) blocks, which 
have proven reserves of approximately 900 million barrels of oil 
and 7 TCF of gas. The close proximity to the pipelines and 
infrastructure installed by Yemen Hunt Oil Co. is anticipated to 
significantly shorten the time period and expenditures required to
develop a commercial oil discovery. TransGlobe entered into a farm
out agreement which allows Vintage to earn a 75 percent working 
interest in Block S-1 by funding 100 percent of the first 
US$20,000,000 of the Block S-1 exploration work.  The current 
three well drilling program is anticipated to satisfy the balance 
of Vintage's earning commitments. TransGlobe will retain a 25 
percent working interest in Block S-1 after Vintage earns.  


DNO ASA, the operator of Block 32, advises that the approved 
development plan for the Tasour field is proceeding on schedule. 
The initial 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 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 

A detailed seismic acquisition program to define Tasour 
development locations and to firm up additional exploratory 
locations was completed on March 8, 2000 and is currently being 
processed and interpreted. Results of the seismic evaluation will 
be used to finalize a development drilling program planned for 
late 2000. Depending on the results of the development wells, 
production could increase to 15,000 to 20,000 bopd (approximately 
1,500 to 2,000 bopd to TransGlobe) by mid 2001.  

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

View Print Version