CALGARY, ALBERTA--(CCNMatthews - Nov. 21, 2005) - TransGlobe Energy Corporation (TSX:TGL) (AMEX:TGA) ("TransGlobe" or the "Company") is pleased to announce a new oil zone was successfully appraised on Block S-1 in the Republic of Yemen.
Block S-1, Yemen (25.0% working interest)
An Nagyah #18 was completed as the first producing Lower Lam B oil well after flowing at a stabilized rate of 1,300 barrels of light (43 degree API) oil per day and 838 thousand cubic feet of gas per day on a 48/64 inch choke. The well commenced drilling on October 18, 2005 and reached a total depth of 2020 meters, with a 780 meter horizontal section.
The Lower Lam B formation is found below the main Lam A producing horizon in the An Nagyah field. The An Nagyah #18 well adds a new oil zone and additional reserves to the An Nagyah field. It is expected that an additional one to two horizontal wells will be required to completely develop the Lower Lam B pool.
The An Nagyah #18 well is connected to the An Nagyah facilities with a temporary pipeline to enable production to continue until a permanent flow line is constructed.
The drilling rig is now moving to the next drilling location at Hatat #1. The Hatat #1 well is an exploration well to test a fractured Basement prospect in the An Naeem area, approximately 22 kilometers north north-west of An Nagyah.
TransGlobe is a growth oriented international exploration and production company with its corporate office in Calgary, Alberta, Canada. TransGlobe is well positioned for continued growth with interests in three production sharing agreements in the Republic of Yemen (two producing, one exploration), one exploration concession in the Arab Republic of Egypt and 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.
TRANSGLOBE ENERGY CORPORATION
s/s Ross Clarkson
Ross G. Clarkson,
President & CEO