TransGlobe Energy Announces Two New Oil Wells on Block 32, Yemen

Source: www.gulfoilandgas.com 5/5/2006, Location: Middle East

TransGlobe Energy Corporation announces successful oil wells at Godah #2 and at Tasour #21 on Block 32 in Yemen (13.81% working interest). The Godah #2 appraisal well was drilled to evaluate the extent of the oil accumulation found at the Godah #1 exploration well. Godah #2, located approximately 1,100 meters to the northeast of Godah #1, encountered the Qishn S-1A sands 20 meters structurally lower than at Godah #1.

Godah #2 was production tested from a 4.0 meter interval at a stabilized rate of 1,160 barrels of oil per day and 117 thousand cubic feet per day of gas (maximum test pump capacity). The well will be equipped with a larger Electrical Submersible Pump ("ESP") and suspended as a potential oil producer. The well logs and the production test have demonstrated an oil column of at least 23 meters. Additional drilling in a structurally lower position and further to the east will be required to determine the location of the oil/water contact and the eastern extent of the pool.

The Godah discovery is located approximately 14 km east of the Tasour Field. The Godah #1 and #2 wells have confirmed the presence of oil at commercial rates. A plan is being prepared to drill additional development/appraisal wells and to connect them to the Tasour main CPF facilities with a 23 km pipeline. The Godah discovery will increase production and reserves within Block 32.

The Tasour #21 delineation well was drilled to a total depth of 1,996 meters and completed as a producing Qishn oil well. The well encountered oil bearing upper Qishn S-1A sands in a separate fault segment located south of the Tasour Field. The well was completed and placed on production as a Qishn S-1A oil producer with an initial production rate of 785 Bpd of oil and 2,355 Bpd of water. The well is now being equipped with a larger ESP to increase the total fluid production from the well.

In addition to development/appraisal drilling at Godah and Tasour, the Block 32 Joint Venture Group plans to drill additional exploration wells during 2006. An exploration well targeting a fractured Basement prospect immediately south of the Tasour field is planned to commence drilling in the third quarter.


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