NEWS RELEASE TRANSMITTED BY Marketwire



FOR: TRANSGLOBE ENERGY CORPORATION

TSX SYMBOL:
 TGL
NASDAQ SYMBOL:
 TGA

TransGlobe Energy Corporation Announces 2002 First Quarter Results

May 17, 2002 - 02 36 ET

CALGARY, ALBERTA--TransGlobe Energy Corporation ("TransGlobe" or 
the "Company") is pleased to announce its financial and operating 
results for the three month period ended March 31, 2002.  All 
dollar values are expressed in United States dollars unless 
otherwise stated.  Conversion of natural gas to oil on the basis 
of 6,000 cubic feet of natural gas being equivalent to one barrel 
of oil. 

HIGHLIGHTS 

* Daily production of 1,487 barrels of oil equivalent 

* Cash flow of $1,266,633 

* Tasour Central Production Facility ("CPF") expansion completed, 
Block 32, Republic of Yemen 

* Entered second exploration period, Block S-1, Republic of Yemen 


/T/

FINANCIAL AND OPERATING UPDATE

                                      Three Months Ended March 31
Financial                           2002            2001       Change

Oil and gas revenue net
 of royalties                  1,971,072       2,489,965         (21)%
Operating expense                412,406         448,519          (8)%
General and
 administrative expense          192,903         132,723          45%
Depletion and depreciation       878,000         734,000          20%
Income taxes                     171,664         169,167           1%
Cash flow from operations      1,266,633       1,739,300         (27)%
 Basic and diluted per share        0.02            0.03         (33)%
Net income                       315,003       1,005,300         (69)%
 Basic and diluted per share        0.01            0.02         (50)%
Capital expenditures           1,369,537       1,119,375          22%
Working capital                1,279,135         820,031          56%
Common shares outstanding                                            
 Basic (weighted average)     51,311,468      50,507,190             
 Diluted (weighted
  average)                    51,867,390      51,301,932

Production

Oil and liquids (Bpd)              1,338           1,285           4%
 Average price ($ per barrel)      21.03           22.45          (6)%
Gas (Mcfpd)                          895           1,164         (23)%
 Average price ($ per Mcf)          2.28            6.24         (63)%
Total (Boed) (6 : 1)               1,487           1,479           1%
Operating expense ($ per Boe)       3.08            3.37          (9)%

/T/

EXPLORATION UPDATE 

Block 32, Republic of Yemen (13.81087% working interest) 

The Asswairy #1 well commenced drilling in December 2001 and 
reached total depth in early 2002.  Although several horizons with
oil shows were tested, no hydrocarbons were recovered, therefore 
the well was plugged and abandoned.  The original 2002 Block 32 
joint venture budget and work program included the drilling of at 
least one additional exploration well.  The Block 32 joint venture
group reviewed the proposed drilling plans for the balance of 2002
and are considering expanding the 2002 drilling program to include
two firm wells and two contingent wells.  Three of the eleven 
seismically identified prospects on the block are ready to be 
drilled.  In addition, depending upon the results of the Tasour 
reservoir modeling and field performance, one of the wells could 
be a development well at Tasour.  The start of drilling has been 
scheduled to commence in September/October to allow sufficient 
time to procure the necessary wellheads, production casing and 
drilling materials for the expanded drilling plan. 

Block S-1, Republic of Yemen (25% working interest) 

The first exploration period ended on March 28, 2002 and the Block
S-1 joint venture group elected to proceed with a second 
exploration period of 2 1/2 years.  The An Naeem #2 well drilled 
in 2000 has pre-qualified as a second exploration period 
commitment well.  The 2001 3-D seismic survey has also qualified 
as a second exploration period commitment.  Two additional wells 
are required to satisfy the balance of the second exploration 
period commitments.  Upon entering the second exploration period, 
a mandatory 25% relinquishment reduced the area to 3,363 square 
kilometers (approximately 861,000 acres).  The relinquished lands 
were not considered prospective. 

The 2001 3-D seismic program, evaluated a trend of Alif and Lam 
prospects identified on existing 2-D seismic data.  The trend 
extends from the adjacent Jannah Hunt, Dhahab and Al Nasr oil 
fields southeast to the Shell discovery at An Nagyah.  The Dhahab 
and Al Nasr fields are currently producing in excess of 40,000 
Bopd.  Approximately 400 square kilometers of additional 3-D 
seismic data on the adjacent blocks (including the Dhahab and Al 
Nasr fields) was acquired through a data trade with Jannah Hunt 
and Occidental Petroleum. 

Three new exploration wells and an appraisal well (on the Harmel 
discovery) are planned for the second half of 2002.  The three 
exploration locations will be finalized in early June.  The 
proposed appraisal well at Harmel #2 has been designed to test and
evaluate the shallow oil zones encountered in Harmel #1.  A pilot 
project is planned to complete and equip both the Harmel #1 and #2
for longer term production to determine the feasibility of a 
full-scale commercial development. 

Canada 

At Cherhill, the Company completed and tied in a 100% working 
interest gas well, which commenced production in February 2002 and
is currently producing 600 Mcfd.  The Morinville well was tied in 
and commenced production in late April at an initial rate of 800 
Mcfd. The Company has a 31% working interest in the well.  In 
March 2002 the Company acquired additional acreage and production 
facilities in the Nevis area.  Plans are underway to drill a Leduc
reef test for potential oil on the 100% working interest lands in 
the second half of 2002. 

OPERATING UPDATE 

Production 

Production from Tasour averaged 9,380 Bopd (1,296 Bopd to 
TransGlobe) during the first quarter of 2002.  The production was 
curtailed during the quarter by fluid handling capacity, pump 
changes and facility shut downs while modifications were carried 
out at the Tasour CPF.  Production has increased to 11,000-12,000 
Bopd (1,500-1,650 Bopd to TransGlobe) since the CPF facility 
expansion was completed in late April. 

Production from Canada averaged 191 Boepd during the first quarter
of 2002 compared to 262 Boepd during the first quarter of 2001.  
The decline in production is primarily attributed to natural 
declines during the year and reduced rates at Pakowki Lake due to 
the start of water production in late December 2001.  Canadian 
production declines will be offset by new production from Cherhill
and Morinville.  An additional 100 Boepd of new production from 
Morningside will contribute to the Canadian production in the 
second half of 2002. 

MANAGEMENT'S DISCUSSION AND ANALYSIS 

Management's discussion and analysis ("MD&A") should be read in 
conjunction with the unaudited interim financial statements for 
the three months ended March 31, 2002 and 2001 and the audited 
financial statements and MD&A for the year ended December 31, 2001
included in the Company's annual report.  All dollar values are 
expressed in United States dollars unless otherwise stated. 

Operating Results 

Net income for the first quarter 2002 was $315,003 ($0.01 per 
share) compared to a net income of $1,005,300 ($0.02 per share) in
2001 with cash flow from operations of $1,266,633 ($0.02 per 
share) compared to $1,739,300 ($0.03 per share) respectively.  The
decrease in net income and cash flow in 2002 is primarily a result
of a significant decrease in oil and gas prices in Canada and a 
reduction in production in Canada. 

Revenue net of royalties was $1,971,072 for the first quarter 2002
compared to $2,489,965 for the same period in 2001.  In 2002, 
revenues net of royalties were $1,773,072 and $198,000 from Yemen 
and Canada respectively.  In 2001, revenues net of royalties were 
$1,865,432 and $624,533 from Yemen and Canada respectively.  
Revenues net of royalties in Yemen decreased 5% due to an 
adjustment to cost oil sharing amounting to $120,000 and a 5% 
decrease in oil prices which were partially offset by a 7% 
increase in production.  The average oil price for the Company's 
production in Yemen for the first quarter 2002 was $21.19 per 
barrel compared to $22.27 in 2001.  Oil produced from the Tasour 
field in Yemen is marketed by Nexen Marketing International Ltd. 
and the oil price is based on a Brent price less a 
quality/transportation differential between the Brent blend and 
the Yemen Masila crude oil blend.  Revenue in Canada decreased due
to a 63% decrease in gas prices, a 37% decrease in oil and liquids
price and a 27% decrease in production.  Gas prices averaged $2.28
per Mcf in Canada for the first quarter 2002 and $6.24 per Mcf for
the same period in 2001.  Oil and liquids prices in Canada 
averaged $16.11 per barrel for the first quarter of 2002 and 
$25.62 per barrel for the same period in 2001. 

Operating costs of $412,406 averaged $3.08 per Boe in the first 
quarter of 2002 compared to $448,519 ($3.37 per Boe) in 2001.  The
decrease is a result of lower operating costs on Yemen Block 32 
operations which averaged $2.55 per barrel in 2002 (Canada was 
$6.69 per Boe). 

The netback per Boe was $11.65 during the first quarter 2002. The 
comparable figure for the same period in 2001 was $15.34 per Boe. 
The decrease in netbacks between periods is primarily due to the 
significant decrease in oil and gas prices in Canada and the 
reduction in production in Canada. 

General and administrative expenses were $192,903 for the three 
month period ended March 31, 2002 as compared to $132,723 in the 
comparable period in 2001.  The increase is attributed to the 
contractual performance bonus payment of $73,630 paid in common 
shares of the Company. 

Depletion and depreciation was $878,000 for the first quarter 2002
compared to $734,000 in 2001.  The increase is attributable to the
inclusion of significantly more costs in the depletable base in 
Yemen.  In Yemen, unproven properties in the amount of $9,194,230 
were excluded from costs subject to depletion and depreciation 
representing all costs incurred in Block S-1 and a portion of the 
costs on Block 32 relating to exploration not directly incurred on
the currently producing property.  These costs will be included in
the depletable base over the period of the development term of 
20-25 years as the Blocks are fully developed. 

Current income tax in the amount of $171,664 ($169,167 in 2001) 
represents income taxes incurred and paid under the laws of the 
Republic of Yemen pursuant to the Production Sharing Agreement on 
Block 32. 

Capital Expenditures 

Capital expenditures were $1,059,633 and $309,904 in Yemen and 
Canada respectively in 2002.  Expenditures in Yemen on Block 32 
were primarily for drilling Asswairy #1, system expansions and 
well workovers at Tasour.  Block S-1 expenditures were primarily 
for pre-drilling inventory for the 2002 exploration drilling 
program. 

Canadian capital expenditures in 2002 relate mainly to completion 
work at Cherhill, tie-ins at Cherhill and Morinville, and the 
acquisition of undeveloped land and tangible assets at Nevis. 

Liquidity and Capital Resources 

TransGlobe expects to fund its capital requirements for the 
balance of 2002 out of cash flow, debt and equity financing as may
be required.  At March 31, 2002, the Company had working capital 
of $1,279,135, a revolving credit facility of $Cdn2,500,000 and an
acquisition credit facility of $Cdn2,000,000 to support its 
capital expenditure program.  The Company has certain flexibility 
in adjusting its Canadian capital expenditure program should 
commodity price fluctuations affect cash flows and thus its 
ability to borrow funds. 


/T/

Consolidated Statements of Income and Deficit
FOR THE THREE MONTH PERIOD ENDED MARCH 31
(Unaudited - Expressed in U.S. Dollars)

                                                2002             2001

REVENUE
Oil and gas sales, net of royalties    $   1,971,072     $  2,489,965
Other income                                     400            1,742
                                       -------------------------------
                                           1,971,472        2,491,707
                                       -------------------------------

EXPENSES
Operating                                    412,406          448,519
General and administrative                   192,903          132,723
Interest on long-term debt                     1,496            1,998
Depletion and depreciation                   878,000          734,000
                                       -------------------------------
                                           1,484,805        1,317,240
                                       -------------------------------
Net income before income taxes               486,667        1,174,467
Income taxes                                 171,664          169,167
                                       -------------------------------
NET INCOME                                   315,003        1,005,300
Deficit, beginning of period             (17,724,698)     (20,786,935)
                                       -------------------------------
Deficit, end of period                 $ (17,409,695)    $(19,781,635)
                                       -------------------------------
Net income per basic and
 diluted share                                $ 0.01           $ 0.02
Weighted average number of common
 shares outstanding
  Basic                                   51,311,468       50,507,190
  Diluted                                 51,867,390       51,301,932
                                       -------------------------------



Consolidated Balance Sheets
(Expressed in U.S. Dollars)

                                            March 31,     December 31,
                                                2002             2001
                                          (Unaudited)
ASSETS
Current
Cash                                   $     804,674     $  1,174,846
Accounts receivable                          926,399          975,773
Prepaid expenses                              63,482           60,687
                                       -------------------------------
                                           1,794,555        2,211,306
Capital assets
Canada                                     3,283,650        3,044,746
Republic of Yemen                         13,848,070       13,591,437
                                       -------------------------------
                                       $  18,926,275     $ 18,847,489
                                       -------------------------------
LIABILITIES
Current
 Accounts payable and
  accrued liabilities                  $     515,420     $    828,959
Provision for site restoration
 and abandonment                             110,209          106,209
                                       -------------------------------
                                             625,629          935,168
                                       -------------------------------
SHAREHOLDERS' EQUITY
Share capital                             35,710,341       35,637,019
Deficit                                  (17,409,695)     (17,724,698)
                                       -------------------------------
                                          18,300,646       17,912,321
                                       -------------------------------
                                       $  18,926,275     $ 18,847,489
                                       -------------------------------



Consolidated Statements of Cash Flows
FOR THE THREE MONTH PERIOD ENDED MARCH 31
(Unaudited - Expressed in U.S. Dollars)

                                                2002             2001

CASH FLOWS RELATED TO THE FOLLOWING ACTIVITIES:

OPERATING
Net income                             $     315,003     $  1,005,300
Adjustments for:
 Depletion and depreciation                  878,000          734,000
 Performance bonus expense
  paid in shares                              73,630                -
                                       -------------------------------
Cash flow from operations                  1,266,633        1,739,300
Changes in non-cash working capital         (166,151)         333,792
                                       -------------------------------
                                           1,100,482        2,073,092
                                       -------------------------------
FINANCING
Issue of share capital                          (308)           5,499
Issuance of long-term debt                         -            3,626
                                       -------------------------------
                                                (308)           9,125
                                       -------------------------------
INVESTING
Purchase of capital assets
Yemen                                     (1,059,633)        (751,029)
Canada                                      (309,904)        (368,346)
Change in non-cash working capital          (100,809)        (682,230)
                                       -------------------------------
                                          (1,470,346)      (1,801,605)
                                       -------------------------------
NET INCREASE (DECREASE) IN CASH             (370,172)         280,612
Cash, beginning of period                  1,174,846           64,914
CASH, END OF PERIOD                    $     804,674     $    345,526
                                       -------------------------------
Cash flow from operations per
 basic and diluted share               $        0.02     $       0.03
                                       -------------------------------

Supplemental Disclosure of Cash Flow Information
 Interest paid                         $       1,496     $      1,998
 Taxes paid - Yemen                    $     171,664     $    169,167
                                       -------------------------------

/T/

Notes to the Consolidated Financial Statements 

1.  Basis of presentation 

The interim consolidated financial statements of TransGlobe Energy
Corporation ("TransGlobe" or the "Company") for the three month 
periods ended March 31, 2002 and 2001 have been prepared by 
management in accordance with accounting principles generally 
accepted in Canada on the same basis as the audited consolidated 
financial statements as at and for the year ended December 31, 
2001.  These interim consolidated financial statements should be 
read in conjunction with the consolidated financial statements and
the notes thereto in TransGlobe's annual report for the year ended
December 31, 2001. 

2.  Share capital 

The Company is authorized to issue 100,000,000 common shares with 
no par value. 


/T/

Continuity of common shares                             2002
                                                Shares         Amount

Balance, December 31, 2001                  51,244,801   $ 35,637,019
Performance bonus expense paid in shares       250,000         73,630
Private placement, issue costs                       -           (308)
                                           ---------------------------
Balance, March 31, 2002                     51,494,801   $ 35,710,341
                                           ---------------------------

/T/

The Company accounts for its stock-based compensation plans using 
the intrinsic-value method.  Under the intrinsic-value method, 
compensation costs are not recognized in the financial statements 
for share options granted to employees and directors when issued 
at market value. 

Effective January 1, 2002, Canadian accounting standards require 
disclosure of the impact on net income of using the fair value 
method for stock options issued on or after January 1, 2002.  No 
stock options have been granted since January 1, 2002, therefore 
if the fair-value method had been used, the effect on the 
Company's 2002 net income and net income per share would have been
nil in this period. 


/T/

3.  Segmented information

                                          Three Months Ended March 31
                                                2002             2001
Oil and gas revenue net of royalties
 Yemen                                 $   1,773,072     $  1,865,432
 Canada                                      198,000          624,533
                                       -------------------------------
                                           1,971,072        2,489,965
Operating
 Yemen                                       297,277          330,003
 Canada                                      115,129          118,516
                                       -------------------------------
                                             412,406          448,519
Depletion and depreciation
 Yemen                                       803,000          645,000
 Canada                                       75,000           89,000
                                       -------------------------------
                                             878,000          734,000
                                       -------------------------------
Segmented operations                         680,666        1,307,446
 Other income                                    400            1,742
 General and administrative                  192,903          132,723
 Interest on long-term debt                    1,496            1,998
 Income taxes                                171,664          169,167
                                       -------------------------------
 Net income                            $     315,003     $  1,005,300
                                       -------------------------------

/T/

4.  Subsequent event 

Subsequent to the quarter end, the Company issued a three year 
letter of credit in the amount of $1,500,000 in support of the 
commitments of the second exploration period on Block S-1 in 
Yemen.  This letter of credit is secured by a term deposit of an 
equal amount of which the Company borrowed $750,000 on its line of
credit.  This letter of credit will be released upon the 
fulfillment of the Block S-1 commitments (drilling two wells). 

The above includes certain statements that may be deemed to be 
"forward-looking statements" within the meaning of the US Private 
Securities Litigation Reform Act of 1995.  All statements in this 
release, other than statements of historical facts, that address 
future production, reserve potential, exploration drilling, 
exploitation activities and events or developments that the 
company expects are forward-looking statements.  Although 
TransGlobe believes the expectations expressed in such 
forward-looking statements are based on reasonable assumptions, 
such statements are not guarantees of future performance and 
actual results or developments may differ materially from those in
the forward-looking statements.  Factors that could cause actual 
results to differ materially from those in forward-looking 
statements include oil and gas prices, exploitation and 
exploration successes, continued availability of capital and 
financing, and general economic, market or business conditions. 

TRANSGLOBE ENERGY CORPORATION 

Ross G. Clarkson, President & C.E.O. 

-30-


FOR FURTHER INFORMATION PLEASE CONTACT:

TransGlobe Energy Corporation
Ross G. Clarkson
President & C.E.O.
(403) 264-9888
(403) 264-9898 (FAX)

or

TransGlobe Energy Corporation
Lloyd W. Herrick
Vice President & C.O.O.
(403) 264-9888
(403) 264-9898 (FAX)
Email: trglobe@trans-globe.com
Website: www.trans-globe.com