TransGlobe Energy Corporation Announces Successful Appraisal Well and Production Start Up in Republic of Yemen

Mar 31, 2004 - 04 01 ET

CALGARY, ALBERTA--(CCNMatthews - Mar 31, 2004) - TransGlobe 
Energy Corporation ("TransGlobe" or the "Company") is pleased to 
announce a successful appraisal well at An Nagyah #5 and the 
start of oil production on Block S-1 in the Republic of Yemen.  

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

Successful appraisal well at An Nagyah #5:  

The An Nagyah #5 well was drilled to a total depth of 1,300 
meters and completed as an Upper Lam oil well after flowing at a 
stabilised rate of 1,150 barrels of light (44 degree API) oil per 
day on a 24 hour test.  

The An Nagyah #5 well encountered the Upper Lam sandstones with a 
14 meter oil bearing interval. A 7.0 meter reservoir interval in 
the oil bearing section was perforated between 1,053 and 1,060 
meters. The perforated interval flow tested at 1,150 barrels per 
day of light oil and 440 thousand cubic feet of natural gas per 
day on a 36/64 inch choke. No water was produced during the test 

The An Nagyah #5 well has proved the continuity and quality of 
the Upper Lam reservoir in the western area of the An Nagyah 
structure. An Nagyah #5 is located 2.2 kilometers west of the An 
Nagyah #4 well which tested light sweet oil at 1,378 Bopd from a 
30 meter perforated interval (May 14, 2003 announcement). The 
successful appraisal well at An Nagyah #5 is expected to increase 
the reserves of the field. The An Nagyah #5 well will be equipped 
for early production via trucking, after the drilling rig is 
moved to An Nagyah #6 later this week. The An Nagyah #6 well is 
located between the An Nagyah #2 and #4 wells and is expected to 
commence drilling in 7-10 days.  

Block S-1 Production Commences from An Nagyah:  

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. The An Nagyah #4 
well was placed on production March 28 and trucking commenced 
March 30, 2004. The well was initially flowing at a start up rate 
of 250 Bopd of clean oil and will be increased to 1,000 to 1,200 
Bopd over the next few days as the trucking operation is 
expanded. The oil production is currently being trucked 18 miles 
to the Jannah Hunt facility where it will be blended with the 
Marib light crude. With the addition of An Nagyah #5, total 
production will be increased to approximately 2,500 Bopd 
(approximately 625 Bopd to TransGlobe) in the second quarter.  

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 initial front end engineering and design 
("FEED") study was completed in February and bid requests have 
been issued for detailed engineering and for long lead time major 
equipment. 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. Additional development wells in the An 
Nagyah pool are expected to be drilled in the third and fourth 
quarters of 2004 and into 2005.  

TransGlobe is an international exploration and production company 
with its corporate office in Calgary, Alberta. Block S-1 is the 
second producing property for the Company in the Republic of 
Yemen. The Company holds a 13.8% working interest in Block 32 in 
the Republic of Yemen where oil production has been underway for 
more than three years. TransGlobe also has producing oil and gas 
properties in Alberta, Canada.  

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.  


(signed) Ross Clarkson

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

Executive Offices:
#2900, 330 -5th Avenue, S.W.,
Calgary, AB T2P 0L4




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


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