Transglobe Announces Exploration Discovery At Osaylan, Block S-1

Source: www.gulfoilandgas.com 11/17/2006, Location: Middle East

TransGlobe Energy Corporation announce a new oil discovery at Osaylan #2, Block S-1, Yemen (25% working interest). The Osaylan #2 exploration well commenced drilling October 15 and was drilled to a total measured depth of 1,675 meters, targeting Alif and Lam sandstones. Osaylan #2 tested a 22 meter perforated Lam interval at a flowing rate of 1,307 barrels per day of 42.1 API oil and 629 thousand cubic feet of natural gas on a 32/64 inch choke at a flowing pressure of 425 psi.

Osaylan #2 is located 1.2 kilometers west northwest of Osaylan #1 which encountered minor oil shows in the Lam formation. The Osaylan discovery is located 18 kilometers from the An Nagyah central production facility.

Following Osaylan #2, the rig is scheduled to drill Al Qurain #1, an Alif/Lam exploration prospect located 5 kilometers west of the An Nagyah field.

Seismic operations: The 610 square kilometer 3-D seismic acquisition program scheduled for 2006/2007, on the southeast part of Block S-1, has been postponed pending resolution of local labour disputes.


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