TransGlobe Energy Corporation Announces Successful Appraisal Well in Republic of Yemen

Jun 15, 2004 - 09 27 ET

CALGARY, ALBERTA--(CCNMatthews - Jun 15, 2004) - TransGlobe 
Energy Corporation ("TransGlobe" or the "Company") is pleased to 
announce the completion of an appraisal well at Harmel #2 on 
Block S-1 in the Republic of Yemen.  

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

Harmel #2:  

The Harmel #2 well was drilled to a total depth of 856 meters and 
cased as a potential oil well. The Harmel #2 well is located 1.2 
kilometers from the Harmel #1 discovery well. Full diameter cores 
were cut over three separate oil zones. The open hole well logs 
and cores indicate the three oil zones encountered in Harmel #1 
also extend to Harmel #2.  

The Harmel #1 well swab tested zones at a combined rate of 500 
barrels per day of clean oil after acid stimulation. The medium 
gravity crude was encountered in three separate zones between 485 
to 750 meters (1,600 to 2,500 feet). A structural closure of up 
to 25 square kilometers (10 square miles) is estimated from 3-D 
seismic data.  

The Harmel #2 cores will be analysed to determine the best 
completion and stimulation methods to optimise recovery and flow 
rates. Core analysis will take approximately three months, after 
which a completion rig will be moved to Harmel #2 to complete and 
test the well. Testing is scheduled to continue for several 
months with the oil being trucked and sold. If the testing 
program is successful, full development of the Harmel pool could 
require drilling of 80 to 90 wells.  

The drilling rig is currently moving from the Harmel #2 location 
to the An Nagyah #8 location to drill a development well in the 
eastern area of the An Nagyah 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.  

An Nagyah Field:  

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. Current production 
from the An Nagyah field via trucking is approximately 900 Bopd 
to TransGlobe. The oil production is being trucked 18 miles to 
the Jannah Hunt facility where it will be blended with the Marib 
light crude.  

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 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. 

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.  



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)