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TransGlobe Announces Production and Operating update for Egypt

12-21-2007 .

The Company's total production is expected to average approximately 7,000 Boepd during the fourth quarter of 2007. This represents a 34% increase over the third quarter of 2007 due to the addition of the West Gharib producing assets in Egypt.

Dated Brent oil prices were very strong averaging $82.50 per barrel in October and $92.61 during November, averaging 17% higher than the third quarter of 2007. North American natural gas prices showed continued weakness, averaging approximately C$6.00/Mcf during October/November. TransGlobe's production is 85% oil and natural gas liquids and 15% natural gas, mitigating the Company's sensitivity to gas pricing.

West Gharib, Arab Republic of Egypt (45% to 70% working interest, TransGlobe operated)

The development well currently drilling at Hana #11 (70% working interest) is expected to reach total depth in the next week. Hana #11 has encountered oil in the main producing zone of the Hana field and will be drilled to a total depth of 9,000+ feet (2,700+ meters) to evaluate several exploration targets below the Hana field. The next scheduled well at Hana #13 may also be drilled to evaluate deeper horizons, depending upon the results of Hana #11. The Hana wells can be placed on production immediately following completion and testing, during January.

The Company is finalizing an agreement for a third drilling rig for the West Gharib area. The rig is scheduled to commence operations in West Gharib by July 2008.

Nuqra Block 1, Arab Republic of Egypt (50% working interest, Operator)

The successful identification of a 460 meter (1,500 foot) interval of mature source rocks in the shallower Cretaceous section of the Narmer #1 exploration well and the discovery of oil on a non-owned block by Dana Gas in the Cretaceous section of Al Baraka #1 on the west side of the Nile has encouraged the Company to continue with additional exploration drilling on the Nuqra Block.

The existing seismic data was remapped and several Cretaceous targets were identified on the Nuqra Block for a future drilling program. Currently the Company is discussing rig sharing possibilities with the adjacent operators to facilitate a mid 2008 drilling program. TransGlobe has significantly increased its operating presence in Egypt with the acquisition of the West Gharib Concession which should facilitate cost effective exploration in the Nuqra Block.