TransGlobe Energy Corporation Provides Mid-Quarter Update

Calgary, Alberta – March 10, 2008 / TransGlobe Energy Corporation (“TransGlobe” or the “Company”) is pleased to announce a mid-quarter production and operating update. All dollar values are expressed in United States dollars unless otherwise stated. The calculations of barrels of oil equivalent (“Boe”) are based on a conversion rate of six thousand cubic feet (“Mcf”) of natural gas to one barrel (“Bbl”) of crude oil. Boes may be misleading, particularly if used in isolation. A Boe conversion ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Production Summary
The Company’s total production averaged approximately 6,970 Boepd in January and 7,800 Boepd in February. New wells, estimated to increase total Company production to approximately 8,000+ Boepd for March 2008, were brought on production during February on the West Gharib leases. The estimated 8,000+ Boepd in March 2008 represents a 17 percent increase over the fourth quarter of 2007 (6,837 Boepd) as a result of new wells and the acquisition of additional interest in the West Gharib producing assets in Egypt on February 5th.



West Gharib (75% to 100% working interest, TransGlobe operated)

Operations and Exploration
TransGlobe assumed operatorship of the West Gharib properties on September 25, 2007. During the first 150 days of operating these assets, the Company:

  • integrated TransGlobe offices and offices belonging to former owner of assets into one location;
  • hired an expatriate General Manager with extensive Egypt experience for the Cairo office;
  • hired a geologist, a geophysicist and an engineer to work on the West Gharib project in the Calgary office;
  • acquired an additional 30% working interest in the properties;
  • drilled two new oil wells, both now producing, increasing oil production by 500 Bopd to 3,400 Bopd gross;
  • completed drilling on a third development well in the Hana field; this well is anticipated to commence producing by the end of March;
  • initiated a Health, Safety and Environment program for the office and field operations;
  • initiated a 3-D seismic program, with work to commence in April 2008;
  • contracted a third drilling rig, scheduled to commence work in July 2008;
  • received approval for the East Hoshia Development lease, increasing total West Gharib lands to 52,900 acres.

TransGlobe has budgeted $29.0 million for exploration and development capital projects on the West Gharib leases during 2008.


YEMEN EAST – Masila Basin

Block 32 (13.81087% working interest)

Operations and Exploration
One development well was completed and placed on production (Dec. 28) in the Godah field. A new exploration well commenced drilling to the west of the Tasour field in early March. Four additional wells are scheduled for Block 32 during 2008.

A six-inch natural-gas pipeline connecting the Godah production facility to the Tasour Central Production Facility (“CPF”) is being constructed to supply associated gas production to the Tasour CPF for fuel gas. It is expected that up to 60% of diesel being consumed for power generation can be replaced with natural gas, resulting in lower operating costs. The gas project is expected to be completed in the first quarter of 2008.

Block 72 (33% working interest)

Operations and Exploration
A seismic acquisition program, consisting of 410 km2 of 3-D and 98 km of 2-D seismic is nearing completion, and mapping is expected to be carried out during the second quarter of 2008. An exploration well is expected to commence drilling in the second half of 2008, following the interpretation of the new seismic data. The first exploration phase of Block 72 has been extended 12 months to January of 2009.

YEMEN WEST- Marib Basin

Block S-1 & Block 75 (25% working interest)

Operations and Exploration

Gas injection has commenced in the western portion of the field to improve production performance and increase recoverable reserves. It has been proposed to the Ministry of Oil and Minerals (“MOM”) that natural gas from the An Naeem #1 well be used to augment this injection. The Block S-1 Joint Venture group is also considering possibilities for a gas sales agreement utilizing known deposits of gas on S-1. At present, TransGlobe has not booked the significant gas reserves associated with the An Naeem discovery. An approved gas development plan is required to proceed with recognizing the reserves and proceed with development.

A combined 400 km2 3-D seismic program is planned for 2008 to define additional exploration drilling locations on the northwest portion of Block S-1 and the north portion of Block 75.

(TransGlobe Press Release)


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