CALGARY, ALBERTA--(CCNMatthews - May 5, 2006) - TransGlobe Energy Corporation ("TransGlobe" or the "Company") (TSX:TGL) (AMEX:TGA) announces successful oil wells at Godah #2 and at Tasour #21 on Block 32 in the Republic of Yemen.
Block 32, Yemen (13.81% working interest)
New field discovery at Godah:
The Godah #2 appraisal well was drilled to evaluate the extent of the oil accumulation found at the Godah #1 exploration well. Godah #2, located approximately 1,100 meters to the northeast of Godah #1, encountered the Qishn S-1A sands 20 meters structurally lower than at Godah #1. Godah #2 was production tested from a 4.0 meter interval at a stabilized rate of 1,160 barrels of oil per day and 117 thousand cubic feet per day of gas (maximum test pump capacity). The well will be equipped with a larger Electrical Submersible Pump ("ESP") and suspended as a potential oil producer. The well logs and the production test have demonstrated an oil column of at least 23 meters. Additional drilling in a structurally lower position and further to the east will be required to determine the location of the oil/water contact and the eastern extent of the pool.
The Godah discovery is located approximately 14 km east of the Tasour Field. The Godah #1 and #2 wells have confirmed the presence of oil at commercial rates. A plan is being prepared to drill additional development/appraisal wells and to connect them to the Tasour main CPF facilities with a 23 km pipeline. The Godah discovery will increase production and reserves within Block 32.
Tasour Field extension found at Tasour #21:
The Tasour #21 delineation well was drilled to a total depth of 1,996 meters and completed as a producing Qishn oil well. The well encountered oil bearing upper Qishn S-1A sands in a separate fault segment located south of the Tasour Field. The well was completed and placed on production as a Qishn S-1A oil producer with an initial production rate of 785 Bpd of oil and 2,355 Bpd of water. The well is now being equipped with a larger ESP to increase the total fluid production from the well.
In addition to development/appraisal drilling at Godah and Tasour, the Block 32 Joint Venture Group plans to drill additional exploration wells during 2006. An exploration well targeting a fractured Basement prospect immediately south of the Tasour field is planned to commence drilling in the third quarter.
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, well production performance, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.
TRANSGLOBE ENERGY CORPORATION
s/s Lloyd Herrick
Lloyd W. Herrick
Vice President & COO