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

TransGlobe is very pleased with recent developments in its Egyptian operations. The Company has drilled four oil wells to date this quarter (one exploration discovery and three development wells). The Hana #18 exploration well found a multi-zone oil pool. The well is expected to test at a combined rate of approximately 2,900 barrels of oil per day ("Bopd"). The new pool and all future appraisal and development wells will be named "Hana West". Indications to date are that this well, and the planned follow-up wells, will add significantly to TransGlobe's reserves and daily oil production.

Testing of Hana #18 commenced with the lowermost zone on November 20th. The lower pools (Zones #4 and #5) were suspended after testing at a combined rate of over 1,280 Bopd (see table below). The final tests in Zone #1, #2 and #3 are expected to increase the total combined rate to approximately 2,900 Bopd. The Hana #18 well is expected to be placed on permanent production by year-end at a pump-limited rate of 830+ Bopd from Zone #1. Larger pumping equipment is being sourced to increase the production rate to 1,500+ Bopd from Zone #1 in this well.

The Company is evaluating higher-rate pumping alternatives to increase production from the Hana West development wells. Additional development wells will be required to produce all five zones concurrently. The Hana #18 well was connected by pipeline to the Hana production facility prior to testing and all test production is being sold.

• Drilling has commenced on an appraisal well at Hana West #2, with the second rig scheduled to move to the next appraisal well at Hana West #3 following the East Hoshia #2 exploration well. The East Hoshia #2 exploration well is targeting a deeper (9,000+ ft) multi-zone exploration prospect.
• Well sites are being constructed for appraisal/development wells at Hana West #4 and Hana West #5.
• TransGlobe has completed a 360+ km2 3-D seismic acquisition program covering the East Hoshia, Hoshia, North Hoshia, Arta and East Arta development areas. The processed data will be available for interpretation and mapping by year-end.

Republic of Yemen (Yemen) - Block 32 (13.8% working interest): moving the drilling rig to drill Tasour #25, a development well. - Block 72 (33% working interest): the first of two planned exploration wells (Seer #1) was drilled to a total depth of 1,794 meters and subsequently plugged and abandoned. The second well is scheduled to be drilled in mid 2009. The Block 72 joint venture partners have been granted approval to enter the second exploration period (30 months), commencing January 12, 2009. - Blocks S-1 and 75 (25% working interest): preparing to commence drilling development wells on the An Nagyah field early in 2009. A 3-D seismic acquisition program was awarded and is expected to commence imminently on Blocks 75 and S-1. Exploration drilling on Block 75 is anticipated after the new 3-D seismic is processed and interpreted.

Total Company production averaged 6,845 Bopd during the month of November and is expected to average 7,700 Bopd during December.

The Company-operated West Gharib Concession in Egypt increased to 3,294 Bopd in November due to improved pump performance at Hoshia and new production from the Hana field at month-end. December production is expected to average 4,100 Bopd with the addition of the new discovery well at Hana West for a portion of the month and new development wells at Hana. The West Gharib 2008 exit rate is expected to be in excess of 4,500 Bopd.

TransGlobe's assets in Yemen produced an average 3,551 Bopd during November and are expected to average 3,600 Bopd during December. November production from the Company's properties in Yemen was lower due to unscheduled maintenance work and natural declines at the Tasour and Godah fields on Block 32.

It is estimated that TransGlobe's 2008 average production will be in excess of 7,400 Boepd and will represent a 30% increase over 2007 average production of 5,651 Boepd. The Company anticipates exiting 2008 with over 8,000 Bopd of production.

The Hana West discovery on the West Gharib property is expected to have a major impact on TransGlobe's 2009 oil production rates. The Company plans to issue 2009 production guidance in January, after the first two appraisal wells (Hana West #2 and #3) are completed.

Tags: TransGlobe Energy Corporation