TransGlobe announces Cdn$75.0 Million Bought-Deal Financing

TransGlobe Energy Corporation announced yesterday that it has entered into an agreement with a syndicate of underwriters under which the members of the syndicate have agreed to purchase for resale, on a bought-deal basis, 5,000,000 common shares (“Common Shares”) of the Company at Cdn$15.00 per Common Share (the “Offering”) to raise gross proceeds of approximately Cdn$75.0 million. Closing of the Offering, which is subject to customary conditions and regulatory approvals, including approval of the Toronto Stock Exchange and the NASDAQ, is expected to occur on or about February 1, 2011. TransGlobe has also granted the underwriters an over-allotment option to purchase, on the same terms, up to an additional 750,000 Common Shares. This option is exercisable, in whole or in part, by the underwriters, in their sole discretion, at any time up to 30 days after closing. The maximum gross proceeds raised under the Offering will be approximately Cdn$86.25 million, should the over-allotment option be exercised in full.

The proceeds of the Offering will be used to fund capital expenditures, to repay long-term debt and to pursue new business development opportunities in the Arab Republic of Egypt, including adding new acreage through farm-in arrangements, bid rounds or acquisitions from third parties.

The Common Shares will be offered in Canada in the Provinces of British Columbia, Alberta, Ontario, Manitoba and Quebec by way of a short-form prospectus and in the United Kingdom and certain other jurisdictions on a private placement basis.

TransGlobe Energy Corporation is a Calgary-based, growth-oriented oil and gas exploration and development company focused on the Middle East/North Africa region with production operations in the Arab Republic of Egypt and the Republic of Yemen. TransGlobe’s common shares trade on the Toronto Stock Exchange under the symbol TGL and on the NASDAQ Exchange under the symbol TGA.


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