TransGlobe Energy Corporation provides a mid-quarter production and operations update for the second quarter of 2008.

Total Company production averaged 7,260 barrels of oil per day (Bopd) during the month of May. Following the closing of the sale of the Canadian assets on April 30, the Company's production now consists 100% of oil, produced in the Arab Republic of Egypt (Egypt) and the Republic of Yemen (Yemen).

The Company-operated West Gharib Concession in Egypt represented 47% of the Company's May production or 3,380 Bopd. Production from TransGlobe's Yemen assets averaged 3,880 Bopd during May, representing 53% of the Company's production.

Egypt • Drilled a potential oil well at South Rahmi, currently being completed. • Currently drilling a water injection well at Hoshia for pressure maintenance/water flood. • The drilling rig is scheduled to move to Hana for a deep exploration/appraisal test in the next week. This will be followed by several Hana development/appraisal wells. • A new 1,200 HP drilling rig arrived in Egypt from China on June 12. This rig will be moved to a drilling location in the Arta field for assembly, inspection and testing. It is expected that the rig will be fully operational and commence drilling in early July. • The new drilling rig is contracted for two years with extension provisions. • Completed seismic test lines to provide design parameters for a planned 300+ km2 3-D seismic acquisition program scheduled to commence in August/September.

Yemen • Block 32: scheduled to commence a two-well drilling program in late June. The first well is targeting a Qishn exploration prospect east of Tasour to be followed by a development appraisal well at Godah (Godah #10). • Block 72: the new 3-D seismic program is being processed and interpreted. The first of two planned exploration wells is scheduled to commence drilling in August. The first well will target a Qishn prospect mapped on the new south-eastern portion of the 3-D seismic data. The second well is scheduled for the 4th Quarter.

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