BLOCK 32, REPUBLIC OF YEMEN (13.81% working interest)

Oil test on Godah #1:

The Godah #1 well was drilled to a total depth of 1,841 meters and completed as an oil well. Godah #1 tested a 4.0 meter Qishn sandstone section at a flowing rate of 1,839 barrels of oil per day and 4.4 million cubic feet of gas per day. No water was produced with the oil. This is the first well drilled on the Godah structure.An appraisal location, Godah #2, approximately 1,100 meters to the northeast is expected to commence drilling in approximately four weeks. The appraisal well should encounter the reservoir sands further down structure to evaluate the position of the oil/water contact. Godah #1 is the first of twelve exploration wells planned for 2006 on TransGlobe's four international projects. Development drilling is also planned for Block S-1 in Yemen and for the Canadian properties. TransGlobe's 2006 budget is expected to be funded entirely from cash flow and working capital.

CORPORATE 2006 FORECAST

TransGlobe expects 2006 production to average between 5,300 to 5,600 Boepd with 2006 cash flow from operations to be between $43 million and $45 million, based on an average dated Brent oil price of $55.00/Bbl and an AECO gas price of Cdn$7.50/Mcf, from existing fields in Yemen and planned developments in Canada. This forecast excludes any potential production from the Godah discovery.