CORP / Transglobe Energy Corporation Announces Florida
Shareholder Files Lawsuit Seeking Damages For Actions
During Tenure Of Previous Company President
TSE, ASE SYMBOL: TGL
ASE SYMBOL: TGL.S
NASDAQ SYMBOL: TGLEF
MAY 22, 1998
CALGARY, ALBERTA--TransGlobe Energy Corporation (ASE and TSE
symbol "TGL", NASDAQ symbol "TGLEF"), an oil and gas exploration
and production company developing petroleum projects in Yemen and
North America, said a Florida shareholder and a related company
have filed a civil suit against TransGlobe and its previous
President, Richard L. Coglon, in the United States District Court
(Middle District of Florida). TransGlobe has been served with a
summons but not yet with the complaint, a copy of which has been
obtained through other sources.
"We understand the lawsuit may relate to a private placement and
press releases issued during the tenure of TransGlobe's previous
president, but the plaintiffs failed to provide any details of the
alleged 'misstatements of fact' or alleged 'omissions to state
material facts' of which they complain," said Ross G. Clarkson,
president. "Therefore we are unable to comment on the merits of
the lawsuit." In the complaint, the plaintiffs say that they
dealt exclusively with Richard L. Coglon as TransGlobe's
representative and purchased 270,000 units of TransGlobe.
"The individual shareholder filing the lawsuit, E. Carl Anderson
of Lutz, Florida, is not unknown to TransGlobe," Clarkson noted.
"Mr. Anderson is a registered shareholder who purchased a 100,000
unit private placement made by TransGlobe during early 1996. In
the private placement subscription agreement signed at that time,
he said his address was Mr. Coglon's law office in a downtown
Vancouver, British Columbia office building that has no
residential occupancy, and said he was a director of TransGlobe.
TransGlobe's corporate records do not indicate Mr. Anderson was
ever a director of TransGlobe, nor do they indicate any private
placements to either plaintiff beyond the 100,000 units."
"We have also been advised that a Florida resident named E. Carl
Anderson is well acquainted with shareholder lawsuits, having
filed at least two previous claims of alleged misdeeds regarding
the public markets in the United States," Clarkson noted.
"Regardless, we must deal with Mr. Anderson's complaint when it is
formally served on TransGlobe. We have retained Florida counsel
(who have defended previous securities lawsuits brought by a Mr.
E. Carl Anderson) and will vigorously defend TransGlobe and seek a
speedy dismissal of the lawsuit."
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