FIELD ACTIVITIES / TransGlobe Energy Corporation Announces Progress in
Yemen and New Mexico
TSE, ASE SYMBOL: TGL
OTC Bulletin Board SYMBOL: TGLEF
SEPTEMBER 23, 1998
CALGARY, ALBERTA--TransGlobe Energy Corporation (ASE, symbol
"TGL"; TSE symbol "TGL"; OTC-BB symbol "TGLEF")
REPUBLIC OF YEMEN
In Block 32, TransGlobe has completed the re-interpretation of the
re-processed, existing seismic data over the Tasour oil discovery.
The new mapping indicates the Tasour structure may be larger than
originally mapped by TransGlobe. In addition, TransGlobe has
identified several new structural leads. A 2-D seismic program is
currently underway to further delineate the Tasour structure and
to firm up additional exploratory drilling locations on adjacent
structures and is expected to be completed by October 30th. The
seismic program will be followed by drilling of two appraisal
wells and one exploratory well during the first quarter of 1999.
TransGlobe has a 9.81 percent working interest in the Block 32
PSA.
In Block S-1, a work program and budget for 1998 and 1999 has been
prepared and will be submitted for approval by the Ministry of Oil
and Mineral Resources ("MOMR") in early October. At that meeting,
TransGlobe will turn operatorship over to Vintage Petroleum, Inc.
("VPI" - NYSE), subject to the approval of the MOMR. In addition,
work has commenced to reprocess the 141 square miles (365 square
kilometers) of existing 3-D seismic data made available by the
MOMR. A small portion, approximately 255 miles (410 kilometers)
of the existing 2-D seismic data also will be reprocessed during
1998. Acquisition of the 58 square miles of new 3-D seismic is
targeted for late 1998. TransGlobe has a 25 percent working
interest in the Block S-1 PSA.
MADERA, NEW MEXICO
TransGlobe installed a leased compressor on the Madera 30-1 well,
which increased the flow rate to 1.7 million cubic feet per day
(MMCF) from the previous rate of 1.2 MMCF. TransGlobe management
believes that the compressor will assist in maintaining maximum
production rates during the winter peak demand period. TransGlobe
has a 47.8 percent working (35.4 percent net revenue) interest in
the Madera 30-1 well.
REFINANCING OF SHORT TERM DEBT
TransGlobe negotiated an extension of a $700,000 Cdn promissory
note from September 1, 1998 to December 31, 1998 and the
cancellation of 257,350 existing warrants. To obtain the
extension the Company issued share purchase warrants allowing the
debenture holder to purchase 300,000 TransGlobe common shares at
$0.375 US per share until February 11, 2000.
In addition, TransGlobe negotiated an extension of unsecured
promissory notes held by insiders and associates, totaling
$500,000 Cdn, to March 31, 1999 and the cancellation of 178,569
existing warrants. In exchange for the extension the Company will
issue share purchase warrants, subject to Toronto and Alberta
Stock Exchange approval, allowing for the purchase of 214,283
TransGlobe common shares at $0.20 US per share until February 2,
2000. TransGlobe's total outstanding warrants and options will
increase to 2,478,920 (a net increase of 78,364).
This release includes certain statements that may be deemed to be
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements in this
release, other than statements of historical facts, that address
future production, reserve potential, exploration drilling,
exploitation activities and events or developments that the
company expects are forward-looking statements. Although
TransGlobe believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and
actual results or developments may differ materially from those in
the forward-looking statements. Factors that could cause actual
results to differ materially from those in forward-looking
statements include oil and gas prices, exploitation and
exploration successes, continued availability of capital and
financing, and general economic, market or business conditions.
TransGlobe Energy Corporation is an independent energy company
engaged in the acquisition, exploitation, exploration and
development of oil and gas properties in the United States and the
Republic of Yemen.
On behalf of the Board of Directors of
TRANSGLOBE ENERGY CORPORATION
Ross G. Clarkson, President & CEO
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