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TransGlobe Announces Successful Rights Offering; Call for Redemption of Debentures

CALGARY, ALBERTA--TransGlobe Energy Corporation (the "Company"), 
(TSE symbol "TGL"; NASD OTC BB symbol "TGLEF"), announces that on 
January 21, 2000, the Company successfully completed a rights 
offering financing and raised US$935,022 by issuing 2,597,283 
shares.  The funds will be applied to putting the Tasour field 
into production. The Tasour field is located in Block 32 in the 
Republic of Yemen. This offering was held in response to requests 
from shareholders and in order to raise equity financing while 
affording the opportunity to existing shareholders to maintain 
their level of participation in the Company.  

The proceeds from the Rights Offering will be used to pay the 
Company's estimated share of Block 32 facilities and pipeline 
construction costs and to drill additional development wells on 
the Tasour discovery (in which the Company has an 9.81087% 
interest). TransGlobe discovered oil at the Tasour-1 exploration 
well in January 1998. A successful appraisal well was drilled at 
Tasour-3 in 1999.  The Tasour field is located in the southern 
portion of Block 32, adjacent to Canadian Occidental's Masila 
producing area.  Production from the Tasour field is expected to 
start in mid 2000 at a rate of 5,000 to 7,000 barrels of oil per 
day (490 to 687 bopd net to TransGlobe).  

In addition the Company has decided to call all of the 
US$748,404.50 10% convertible subordinated secured debentures due 
January 1, 2004 (the "Debentures") for redemption on February 28, 
2000.  The Company is entitled to redeem the Debentures at par, 
although the Debenture holders have the right to elect to convert 
the Debentures into fully paid and non-assessable common shares of
the Company at US$0.15 per share.  

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 & C.E.O.  


TransGlobe Energy Corporation
Ross G. Clarkson
President & C.E.O.
(403) 264-9888
(403) 264-9898 (FAX)


TransGlobe Energy Corporation
Lloyd W. Herrick
Vice President & C.O.O.
(403) 264-9888
(403) 264-9898 (FAX)
The Canadian Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.

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