TransGlobe Energy Corporation entered into an agreement to acquire privately-held GHP Exploration for US$40.2 million. Under terms of the agreement, TransGlobe Energy will pay US$40.2 million for a 30 percent interest in eight development leases and associated infrastructure in the Arab Republic of Egypt.

The transaction, expected to close February 2008, effectively expands TransGlobe's presence in the Arab Republic of Egypt. Expected to be accretive on a net income and cash flow per share basis, the transaction is expected to be funded from an expansion of TransGlobe's existing credit facility and working capital.

Ross Clarkson, President & CEO said: "This acquisition further strengthens our position in the Arab Republic of Egypt. It provides TransGlobe Energy with enhanced drilling opportunities, increased reserves and a more robust production profile. It allows us to leverage our existing experience and operational success in Egypt and throughout the Middle East. In fact, recent drilling results are encouraging and the Company has plans to significantly increase oil production from the West Gharib area over the next twelve to eighteen months."

Clarkson continued: "While our Canadian properties have served us well in the past, the many growth opportunities on our Egyptian and Yemen properties demand even greater attention. As a result, and as disclosed in the December 18, 2007 press release, we plan to divest our Canadian assets in the first half of 2008. We plan to use the proceeds from this sale to maintain our strong balance sheet and to further grow our opportunities in the Middle East. I look forward to 2008 with great enthusiasm as we continue to leverage our operational success and build greater shareholder value."

Tags: GHP Exploration, TransGlobe Energy Corporation