TransGlobe Completes Acquisition of Producing Fields in Egypt

TransGlobe Energy Corporation announced the closing of the acquisition of two privately held companies, holding interests in eight development leases and associated infrastructure in the West Gharib Concession area in Egypt.

West Gharib, Egypt (45% to 70% operated working interest)

TransGlobe Petroleum International Inc., a wholly owned subsidiary of TransGlobe Energy Corporation, has acquired all the shares of Dublin International Petroleum (Egypt) Limited and Drucker Petroleum Inc. from Tanganyika Oil (Bermuda) I Ltd. for US$59 million, plus working capital adjustments, as at July 1, 2007. Dublin and Drucker together hold a 70% working interest in one development lease and a 45% working interest in seven additional development leases comprising the West Gharib Production Sharing Concession ("PSC"). TransGlobe has assumed operatorship of the West Gharib Concession Agreement.

The West Gharib PSC is located onshore in the western Gulf of Suez rift basin of Egypt. Major oil and gas discoveries have been made in this prolific basin. To date eight billion barrels of oil and five trillion cubic feet of gas have been discovered. The eight approved West Gharib development leases encompass 178 square kilometers (approximately 44,059 acres) and are valid for 20 years. Modern 3-D seismic covers the majority of the development leases. One additional development lease is currently awaiting approval by the Egyptian General Petroleum Corporation ("EGPC"). Current gross oil production from the eight development leases is approximately 3,000 Bopd. TransGlobe's working interest share of production is approximately 1,500 Bopd (approximately 750 net Bopd after the production sharing split with the Government of Egypt). There are seven oil fields on the lands which are producing from 24 wells. The oil produced ranges from 16 degrees API to 26 degrees API and is currently trucked 15 kilometers to the Ras Gharib terminal. Independent reserve auditors have assessed TransGlobe's share of the eight leases to contain 3.24 MMBbls of working interest proved reserves and 6.30 MMBbls of working interest proved plus probable reserves. This acquisition has increased TransGlobe's reserves by approximately 35% for Proved and by 54% for Proved plus Probable as at July 1, 2007.

Two drilling rigs are under long term contracts on the West Gharib development leases. One rig is currently drilling an exploration well and the second is also expected to start drilling another exploration well imminently. TransGlobe is currently searching for a third rig for the West Gharib project to accelerate the exploration and development program.