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Transglobe Energy Corporation Announces Start Of Drilling Operations In Yemen And Convertible Debenture Financing

CALGARY, ALBERTA--TransGlobe Energy Corporation (ASE, symbol 
"TGL"; TSE symbol "TGL"; OTC-BB symbol "TGLEF") announced the 
operator of Block 32 in Yemen, DNO ASA, a Norwegian public 
company, is preparing for drilling the first appraisal well on the
Tasour structure.  A drilling rig has been contracted and the 
drilling is expected to start within the next two weeks. 

The new seismic acquired in 1998 on Block 32 has been interpreted 
by TransGlobe and provides improved and encouraging definition of 
the Tasour structure, which was penetrated by the Tasour 1 well in
late 1997.  The Tasour 1 well tested 4870 barrels of oil per day. 
The test was limited by the pump size.  Independent engineering 
analysis of the test results indicate the reservoir zone may be 
capable of production in excess of 10,000 barrels of oil per day. 

The work program for 1999 includes the drilling of three new 
wells.  The first two wells will be drilled on the Tasour 
structure with the primary objective to appraise the Tasour 1 
discovery.   The first well will test the eastward extension of 
the structure and is located six kilometers (approximately four 
miles) to the east of the Tasour 1 discovery. The second appraisal
well will also test deeper reservoir horizons that are productive 
in the nearby Sunah field operated by Canadian Occidental 
Petroleum Ltd.  Development of the Tasour field could start in 
1999 if this drilling program proves commercial volumes of oil.   


The Block 32 partners are:
              TransGlobe Energy Corporation, 9.81 percent
              DNO ASA, 20 percent
              Ansan Wikfs (Hadramaut) Limited, 45.19 percent
              Norsk Hydro Yemen AS, 25 percent


On February 11, 1999, TransGlobe completed a private placement of 
$748,404.50 convertible subordinated secured debentures.  The 
convertible debentures bear interest at 10 percent per annum 
payable semi-annually, mature January 1, 2004, and are secured by 
a floating charge/general security agreement over the assets of 
the Company registered in British Columbia and Alberta only, and 
subordinate to up to $750,000 bank indebtedness.  The debentures 
are convertible at  $0.15 per share at any time during the term at
the option of the holder, and redeemable by the Company after 
January 1, 2000 only if either (a) the then current market price 
based on a 20 day closing average is at least twice the conversion
price; or (b) the Company pays a prepayment bonus.  The interest 
payments are also convertible in certain circumstances at the 
holder's option into common shares of the Company at a price per 
share which is the greater of the ten day weighted average trading
price prior to the debenture holder's election to convert and the 
one day weighted average trading price for the trading day prior 
to the debenture holder's election to convert, to be issued upon 
the receipt of The Toronto Stock Exchange's approval.  The Company
raised  $748,404.50; of which  $420,000 was from arms' length 
investors and $328,404.50 was conversion of the insiders and their
associates' promissory notes due March 31, 1999, subject to 
shareholder approval.  If the principal of the convertible 
debentures is converted, up to 4,989,363 Common Shares could be 
issued.   If the interest due under the convertible debentures is 
convertible into Interest Shares, the number of Interest Shares 
will depend upon the market price of the Company's Common Shares 
at that time.  The Company has reserved up to 1,200,000 Interest 
Shares for issuance.  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.  These securities were 
placed with Canadian residents. 

The private placement was done to eliminate the Company's short 
term debt and to help provide the Company with adequate funding 
for the drilling program on Block 32, Yemen.  The Company raised 
enough in its recent rights offering to pay the Company's 
estimated share of the cost to drill and test the first Tasour 
appraisal well on Block 32 in Yemen and a portion of the Company's
estimated share of the cost to drill and test the second Tasour 
appraisal well.  In addition, the Company closed the sale of its 
Madera property for $1.1 million (after commission), enabling it 
to repay $700,000 (Canadian $) owed to an arm's length party in 
respect of the debenture due December 31, 1998 and all the money 
due to the Company's bank.  The proceeds of the private placement 
may be used for working capital and/or to drill part of the second
Tasour well. 

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. 

(All dollar values are expressed in the United States dollars 
unless otherwise stated.)   

On behalf of the Board of Directors of  



TransGlobe Energy Corporation
Ross G. Clarkson
(403) 264-9888
(403) 264-9898 (FAX)
The Alberta Stock Exchange has neither approved nor disapproved
the information contained herein.

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