TransGlobe Energy Corporation Announces Successful Development Well and Award of New Exploration Block in the Republic of Yemen

Jun 23, 2004 - 01 47 ET

CALGARY, ALBERTA--(CCNMatthews - Jun 23, 2004) - TransGlobe 
Energy Corporation ("TransGlobe" or the "Company") (TSX symbol 
"TGL"; AMEX symbol "TGA") is pleased to announce a successful 
development well at Tasour #12 on Block 32 and the award of a new 
exploration block in the Republic of Yemen. 

Block 32, Yemen (13.81% working interest) 

The Tasour #12 development well was completed as an oil well and 
placed on production at an initial rate of approximately 6,100 
barrels of oil per day with 6,600 barrels of water per day, from 
the main producing zone the Qishn S1-A . The Tasour #12 well is 
located in the central area of the Tasour field. A second oil 
zone in the Qishn S1-C zone was also encountered which may be 
completed in the future. 

With the addition of Tasour #12 the Tasour field is producing in 
excess of 21,000 Bopd (approximately 2,900 Bopd to TransGlobe). 
It is expected that production from the Tasour field will average 
approximately 18,000+ Bopd (2,485 Bopd to TransGlobe) for the 
remainder of 2004, which is consistent with the 2004 work plan 
and predicted natural declines for the field. 

Further development drilling in the western extension is planned 
for the fourth quarter of 2004. The remapping of the Tasour field 
utilizing recently acquired 3-D seismic shows a possible eastern 
extension which is anticipated to be drilled in late 2004. 

TransGlobe has entered into a one year fixed price contract 
commencing July 1, 2004, for the sale of 10,000 barrels of oil 
per month from Block 32 at US$33.90 per barrel for Dated Brent 
plus or minus the Yemen Government official selling price 
differential. The fixed price contract represents approximately 
30% of TransGlobe's net barrels (after royalties and taxes) from 
the Tasour field in Block 32. 

Block 72, Yemen (33.0% working interest) 

The Ministry of Oil and Minerals has selected the joint venture 
group comprised of DNO ASA (operator at 34%), TG Holdings Yemen 
Inc. (33%) and Ansan Wikfs (Hadramaut) Limited (33%) as the 
successful bidder for Block 72 in the International Bid Round for 
Exploration and Production of Hydrocarbons. TG Holdings Yemen Inc 
is a wholly owned subsidiary of TransGlobe Energy Corporation. 
The award is subject to government approval and ratification of a 
Production Sharing Agreement. 

Block 72 encompasses 1,822 square kilometers (approximately 
450,234 acres) and is located in the western Masila Basin 
adjacent to the Canadian Nexen Masila Block where more than one 
billion barrels of oil have been discovered. The Block 72 Joint 
Venture Group plans to carry out a seismic acquisition program 
and the drilling of two exploration wells during the first 
exploration period of thirty months. 

TransGlobe is an international exploration and production company 
with its corporate office in Calgary, Alberta. In addition to its 
interest in Block 72, the Company holds a 25% working interest in 
Block S-1 and a 13.81% working inertest in Block 32 in the 
Republic of Yemen. On Block S-1 the Company is participating in a 
major oil development program comprising 13 development wells and 
construction of an oil pipeline and a central production 
facility. Block 32 was developed and placed on production in 2000 
and is currently producing in excess of 22,000 Bopd 
(approximately 3,038 Bopd to TransGlobe). 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. 


s/s Ross Clarkson 

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



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)