2009-08-10-2008-05-01-2008-06-01

Acquired assets, gaining 15 Bcfe proved, 1,450 BOE/d.

Direct Energy Marketing Ltd., Calgary, a subsidiary of Centrica Plc, (London: CAN) has completed its acquisition of the Canadian oil and gas assets of TransGlobe Energy Corp., Calgary, (NasdaqGS: TGA; Toronto: TGL.TO) for C$56.7 million in cash. The assets include properties in central Alberta. Production is approximately 1,450 barrels of oil equivalent per day or 8.7 million cubic feet (75% gas). Direct estimates reserves to be approximately 15 billion cubic feet equivalent. The acquisition includes 50,000 acres with development potential. TransGlobe will use the proceeds to pay debt incurred from the acquisition of producing assets in Egypt late in 2007 and early in 2008. The company reports a deal value of C$39,100 per barrel of oil equivalent per day and C$14.87 per barrel equivalent proved plus probable. Direct chairman and chief executive Deryk King says, "These assets are a strong strategic and operational fit with our existing upstream gas portfolio and this acquisition is in line with our strategy of increasing the level of vertical integration across Direct Energy. We continue to evaluate opportunities to add reserves and production to our upstream business where value can clearly be added from such acquisitions." TransGlobe president and chief executive Ross Clarkson says, "The Canadian properties were an important part of our business prior to TransGlobe becoming an operator in Egypt. Our strategy is to become a pure Middle East/North Africa growth story, and the sale of the Canadian assets facilitated the acquisition of producing properties in Egypt that have great growth potential." He says TransGlobe's current production is more than 7,200 barrels of oil per day from Egypt and Yemen provides strong cash flow to fund an aggressive drilling program. The effective date is Jan. 1. Tristone Capital was advisor to TransGlobe.