2009-08-16-2008-10-01-2008-10-01

Purchased additional 25% in West Gharib properties.

TransGlobe Energy Corp., Calgary, (Toronto: TGL) has acquired an additional 25% in certain leases on its West Gharib properties in Egypt from an undisclosed Cyprus-based private partner for US$18 million. The deal is valued at US$45,000 per flowing barrel of oil per day and US$16.20 per barrel proved and probable reserves, according to TransGlobe. TransGlobe now holds 100% working interest on all nine West Gharib leases, in which it originally acquired interest in September 2007 from privately held Dublin International Petroleum (Egypt) Ltd. and Drucker Petroleum Inc. from Tanganyika Oil (Bermuda) I Ltd., Vancouver, (OMX: TYKS) for US$59 million in cash. TransGlobe now holds 100% working interests in eight development leases and associated infrastructure on 178 square kilometers (approximately 44,059 acres) in the West Gharib concession area onshore the western Gulf of Suez in Egypt. The assets include 24 producing wells in seven fields. Production from the new assets is approximately 400 barrels of oil per day. TransGlobe funded the deal through its expanded credit facility and working capital. Depending upon the size of future reserve additions in the East Hoshia and South Rahmi fields, TransGlobe has agreed to pay the partner a success fee up to US$5 million and US$2 million, respectively. TransGlobe president and chief executive Ross Clarkson says, "The West Gharib acquisition established TransGlobe as a producing operator in the Middle East and we are very pleased to increase our interest. The early drilling successes have proved the value of the assets. We believe there are more production and reserve gains to come from the West Gharib lands."