TransGlobe Energy Corporation Announces Update On Republic Of Yemen Operations

Oct 18, 2002 - 11 34 ET

CALGARY, ALBERTA--TransGlobe Energy Corporation ("TransGlobe" or 
the "Company") (TSX symbol "TGL"; OTC-BB symbol "TGLEF") is 
pleased to announce production from Tasour 7 resulting in record 
production from the Tasour field on Block 32, in the Republic of 

Block 32, Yemen (13.81% working interest) 

The Tasour #7 step out well was completed and tied in as a 
multi-zone producing oil well. The well was completed and placed 
on production at 8,501 barrels of oil per day ("Bopd"), which is 
the capacity of the pump. The Tasour #7 well encountered the main 
upper Qishn producing zone in a structurally higher position than 
the existing producers, thereby extending the field to the south 
to an area that was previously assumed to be below the oil water 
contact. In addition to the full oil column in the main producing 
zone, the well also discovered a new pool in the Qishn sands below
the main zone. The new zone is also being produced with the main 
upper Qishn reservoir. 

Additional appraisal drilling of two-three more wells will be 
contingent on the production performance of Tasour #7 and 
re-mapping the main field extension. The new pool discovery will 
also be analysed and may present additional drilling targets. The 
results from Tasour #7 are expected to increase the recoverable 
oil reserves for the Tasour Field. 

The drilling rig has moved to a non-owned adjacent block for 
two-three wells as part of a multi-well, rig sharing contract to 
reduce costs. The drilling rig should be available to the Block 32
Joint Venture group in late December 2002. TransGlobe is working 
with the Operator, DNO ASA, with the view to possibly drilling 
another infill well, Tasour #8, followed by an exploratory 
prospect at Al Ghoraf #1 on the western portion of Block 32. 
Additional development wells at Tasour will be considered for 

The Tasour field is producing at a record level of 15,591 Bopd 
(2,153 Bopd to TransGlobe) which is approaching the current 
capacity of the export pumps.  TransGlobe expects that the Tasour 
field will produce at or near current levels until additional 
wells are drilled in Q-1 and Q-2 2003. Contingent upon successful 
drilling results and production performance, the installation of 
additional export pumps may be undertaken during 2003 to raise the
export capacity to 25,000 Bopd through the eight inch pipeline 
connecting the Tasour CPF (central production facility) to the 
Nexen export pipeline. If future wells at Tasour prove successful,
it is TransGlobe's view that the total production for the Tasour 
field may reach more than 20,000 Bopd (2,760 Bopd to TransGlobe) 
during 2003. 

Production from Block 32 was partially curtailed for three days 
following the offshore tanker incident at the Yemen port of Minah 
al Dabah on October 6. The production was curtailed to accommodate
tanker rescheduling at the Nexen Masila terminal. Additional 
security has been implemented at the loading facility. 

Cash Flow Targets Revised Upward 

The Company is revising its 2002 cash flow estimate upwards to 
US$7,600,000 or US$0.15 per share. The revision is due to higher 
than anticipated oil prices, the excellent production performance 
of the Tasour field and expected increased production with the 
addition of the Tasour #7 well. 

This release 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. 


Ross Clarkson, President & CEO 



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


TransGlobe Energy Corporation
Lloyd W. Herrick
Vice President & C.O.O.
(403) 264-9888
(403) 264-9898 (FAX)