TransGlobe Energy Provides Yemen Operational Updates

Source: www.gulfoilandgas.com 10/4/2006, Location: Middle East

TransGlobe Energy Corporation announced a successful Qishn oil well at Godah #3, Block 32 in Yemen (13.81% working interest)and other operational updates.

Drilling operations: The Godah #3 appraisal well was drilled to evaluate the extent of the oil accumulation found at the Godah #1 and #2 locations. Godah #3 was drilled at a location approximately 1,100 meters to the west/south west of Godah #1. The Godah # 3 appraisal well was drilled to a total depth of 1,747 meters and completed as a producing Qishn S1-A oil well.

Godah #3 was production tested from a 5 meter interval at a stabilized rate of 1,511 barrels of oil per day and 122 thousand cubic feet per day of gas (maximum test pump capacity). The well will be suspended as an oil producer.

The drilling rig will be moving to a location at Godah #4, approximately 3 kilometers (kms) east/northeast of Godah #1 (1 km north/northeast of Godah #2), to further appraise and develop the Godah pool. The Godah #4 well is positioned to evaluate the oil/water contact in a structurally lower position than Godah #2 and to evaluate an eastern pool extension.

In early June, the joint venture partnership approved the development of the Godah field. The operator is currently installing equipment to commence production from Godah #2 & #3 in late October at an estimated initial rate of 1,000 to 2,000 Bpd per well. The facilities have been designed to handle additional production from the planned Godah #4 well. The partnership also approved the construction of the permanent facilities required to develop the Godah field. The development consists of a 23km, 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. The Godah field is located approximately 14 km east of the Tasour Field.

A second, larger, drilling rig commenced drilling an exploration well at Tasour #23 on September 5th. Tasour #23 is targeting a fractured basement prospect south of the Tasour field and is expected to take an additional 30 to 40 days to drill and evaluate.

Seismic operations: In addition a 275 square kilometer 3-D seismic acquisition program commenced in September of 2006. The 3-D seismic program consists of two parts. The first part of the program will cover the Godah discovery extending to the eastern boundary of Block 32 (210 square kilometers). A second part will cover an area northwest of Tasour (65 square kilometers). 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 and northwest of Tasour.

Production: With the addition of the Tasour 22ST Qishn oil well (announced August 31st, 2006) the Tasour field production averaged 15,500 Bopd (2,150 Bopd to TransGlobe) in September. The Tasour 22ST well continues to produce in excess of 8,000 Bopd (1,105 to TransGlobe).

Block 72, Yemen (33% working interest)

The 255 km of new 2-D seismic data acquired at the end of 2005 has been processed, along with 500 km of existing 2-D seismic data. Interpretation and mapping is nearing completion. The first of two exploration wells is scheduled to commence drilling in December of 2006.


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