Transglobe Energy Announces Successful Development Well And Approval Of A New Development In Yemen

Thursday, October 30, 2003 Calgary, Alberta - TransGlobe Energy Corporation had a successful development well at Tasour #11 on Block 32 and approval of the Block S-1 Development Plan in the Republic of Yemen.

Block 32, Yemen (13.81% working interest)

The Tasour #11 well was completed as an oil well and placed on production today at an initial rate of approximately 6,000 barrels of oil and 3,000 barrels of water per day. Tasour #11 is located in the western extension of the Tasour field initially discovered by the Tasour #10 step-out well.

With the addition of Tasour #11 the Tasour field is currently producing in excess of 20,000 Bopd (2,760 Bopd to TransGlobe). It is expected that production from the Tasour field will average approximately 16,000 Bopd (2,210 Bopd to TransGlobe) for the year 2004, which is consistent with the predicted natural declines for the field.

Further development drilling in the western extension is planned for 2004. The remapping of the Tasour field now shows a possible eastern extension which will be tested during 2004. The anticipated average production for 2004 could increase if the planned development drilling is successful.

Block S-1, Yemen (25.0% working interest)

On October 15, 2003 the Ministry of Oil and Minerals approved the Block S-1 Development Plan and Development Area of approximately 285,000 acres. The Development Area encompasses all of the An Naeem, Harmel and An Nagyah discoveries as well as several additional prospects that could be drilled in the future. The Development/Production period will extend until 2023 with an optional five year extension also possible.

The initial field development is focused on the An Nagyah light oil pool which was discovered and appraised during the 2002/2003 drilling program. The plan provides for early production commencing in the first quarter of 2004 by trucking up to 2,500 Bopd (625 Bopd to TransGlobe) from existing wells. Concurrently, construction of a central production facility at An Nagyah and a 28 kilometer (18 mile) 8 inch pipeline to the Jannah Hunt Halewah export pipeline is planned during 2004, with an anticipated completion by early 2005. The pipeline capacity would be in excess of 30,000 Bopd to allow future discoveries to be placed on stream quickly. The central production facility will be designed with an initial capacity of 10,000 Bopd (2,500 Bopd to TransGlobe). It is expected that the An Nagyah field development will consist of 13 wells to delineate and produce the field. Development/appraisal drilling is expected to commence on the An Nagyah field in the first half of 2004. The total number of wells will be adjusted as additional reservoir information is obtained from new drilling.

In addition to the An Nagyah field development, the Block S-1 Joint Venture Group plans to drill an appraisal well on the Harmel medium gravity oil discovery and to evaluate the An Naeem gas condensate discovery for a potential condensate gas cycling project. The Harmel appraisal well is expected to be drilled in 2004. It is anticipated that the Harmel pilot production project will commence after the An Nagyah field has been developed.