Transglobe Provides Operations Update on Block 32, Yemen

Source: www.gulfoilandgas.com 8/31/2006, Location: Middle East

TransGlobe Energy Corporation announces a successful Qishn oil well at Tasour #22ST and updated operations on Block 32 (13.81% working interest) in Yemen. The Tasour #22ST development well was drilled to a total depth of 1,853 meters and completed as a producing Qishn oil well. The well encountered oil bearing upper Qishn S-1A, S-1B and S-1C sands in a crestal position on the eastern edge 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 6,440 Bpd of oil and 2,766 Bpd of water (889 barrels of oil to TransGlobe, pre-tax and royalty).

Tasour #22ST was side tracked to its current position following a Sarr/Qishn test offsetting Tasour #21 on the south eastern portion of the field. A test of the Qishn formation confirmed that the southeastern area of Tasour is in communication with the existing producers in the field and is being effectively drained. The Sarr prospect was not successful.

The drilling rig is currently moving to a location at Godah #3, approximately 14 kilometers east of Tasour, to appraise/develop the Godah pool discovered in January 2006. The 2006 drilling program has been expanded to drill Godah #4 following the Godah #3 well.

In early June, the partnership approved the development of the Godah field. The operator is currently installing equipment to commence production during the fourth quarter of 2006 at initial rates of 2,000 to 4,000 Bopd (275 to 550 Bopd to TransGlobe). The partnership also approved the construction of the permanent facilities required to develop the Godah field. The development consists of a 14 mile (23 km) 10 inch pipeline to the Tasour Central Production Facility ("CPF") and expansion of the Tasour CPF to process the Godah oil. The pipeline and expanded Tasour facilities could be operational by mid 2007.

A second, larger, drilling rig is currently moving to Block 32 to drill an exploration well at Tasour #23. Tasour #23 is targeting a fractured basement prospect south of the Tasour field and is expected to take 50 to 60 days to drill and evaluate.

In addition, plans to acquire a 200+ square kilometer 3-D seismic program in 2007 have been accelerated. It is expected the 3-D acquisition will now commence in September of 2006. The 3-D seismic program will cover the Godah discovery and extend to the eastern boundary of Block 32. The new 3-D seismic should assist in the development of the Godah field and in the exploration drilling planned for the eastern portion of Block 32.


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