TransGlobe Announces Successful Appraisal Well in Yemen

TransGlobe Energy Corporation announced a new oil zone was successfully appraised on Block S-1, Yemen (25.0% working interest). An Nagyah #18 was completed as the first producing Lower Lam B oil well after flowing at a stabilized rate of 1,300 barrels of light (43 degree API) oil per day and 838 thousand cubic feet of gas per day on a 48/64 inch choke. The well commenced drilling on October 18, 2005 and reached a total depth of 2020 meters, with a 780 meter horizontal section.

The Lower Lam B formation is found below the main Lam A producing horizon in the An Nagyah field. The An Nagyah #18 well adds a new oil zone and additional reserves to the An Nagyah field. It is expected that an additional one to two horizontal wells will be required to completely develop the Lower Lam B pool.

The An Nagyah #18 well is connected to the An Nagyah facilities with a temporary pipeline to enable production to continue until a permanent flow line is constructed.

The drilling rig is now moving to the next drilling location at Hatat #1. The Hatat #1 well is an exploration well to test a fractured Basement prospect in the An Naeem area, approximately 22 kilometers north north-west of An Nagyah.