Transglobe Energy Corporation Announces Successful Appraisal Well In Republic Of Yemen

Source: www.gulfoilandgas.com 6/15/2004, Location: Middle East

Calgary, Alberta, Tuesday, June 15, 2004 -TransGlobe Energy Corporation ("TransGlobe" or the "Company") is pleased to announce the completion of an appraisal well at Harmel #2 on Block S-1 in the Republic of Yemen.

BLOCK S-1, REPUBLIC OF YEMEN (25% working interest)

Harmel #2:
The Harmel #2 well was drilled to a total depth of 856 meters and cased as a potential oil well. The Harmel #2 well is located 1.2 kilometers from the Harmel #1 discovery well. Full diameter cores were cut over three separate oil zones. The open hole well logs and cores indicate the three oil zones encountered in Harmel #1 also extend to Harmel #2.

The Harmel #1 well swab tested zones at a combined rate of 500 barrels per day of clean oil after acid stimulation. The medium gravity crude was encountered in three separate zones between 485 to 750meters (1,600 to 2,500 feet). A structural closure of up to 25 square kilometers (10 square miles) is estimated from 3-D seismic data.

The Harmel #2 cores will be analysed to determine the best completion and stimulation methods to optimise recovery and flow rates. Core analysis will take approximately three months, after which a completion rig will be moved to Harmel #2 to complete and test the well. Testing is scheduled to continue for several months with the oil being trucked and sold. If the testing program is successful, full development of the Harmel pool could require drilling of 80 to 90 wells.

The drilling rig is currently moving from the Harmel #2 location to the An Nagyah #8 location to drill a development well in the eastern area of the An Nagyah field. Additional development wells in the An Nagyah pool are expected to be drilled in the third and fourth quarters of 2004 and into 2005.

An Nagyah Field:
The early production facilities at the An Nagyah field were installed during the first quarter 2004 and field production operations were initiated on March 28, 2004. Current production from the An Nagyah field via trucking is approximately 900 Bopd to TransGlobe.The oil production is being trucked 18 miles to the Jannah Hunt facility where it will be blended with the Marib light crude.

Trucking operations will be phased out following the construction of a central production facility ("CPF") at An Nagyah and a 28 kilometer (18 mile) pipeline to the Jannah Hunt export pipeline. The pipeline and facilities are expected to be operational by early 2005. The 10 inch pipeline is designed to allow an ultimate capacity of 80,000 Bopd so that future discoveries can be placed on stream quickly. The CPF is designed for an initial capacity of 10,000 Bopd (2,500 Bopd to TransGlobe), with expansion capabilities. The facilities and pipeline are planned to be operational in the first half of 2005. It is expected that the An Nagyah field development will consist of 13 wells to delineate and produce the field.



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