TRANSGLOBE ENERGY CORPORATION ANNOUNCES UPDATE ON
REPUBLIC OF YEMEN OPERATIONS

Monday, February 10, 2003 Calgary, Alberta - TransGlobe Energy Corporation (“TransGlobe” or the “Company”) (TSX symbol "TGL"; OTC-BB symbol "TGLEF") is pleased to announce increased production rates on Block 32 in the Republic of Yemen.

Block 32, Yemen (13.81% working interest)

The oil production from the Tasour-field was increased to more than 17,500 BOPD at the end of January (TransGlobe’s share 2,417 Bopd before royalties and tax) due to the installation of increased pump capacity for the export pipeline. Additional work on the export pump system to expand the shipping capacity to 25,000 Bopd is expected to be complete by the end of February. Currently there are three wells shut in as the production capability exceeds the export pump capacity. With the completion of the additional work, Tasour field has the capacity to produce more than 20,000 Bopd with all six wells on full production.

Drilling of a well on the Haibish structure to the northwest of Tasour is now almost completed. The well did not encounter hydrocarbons of commercial quantities. TransGlobe’s share of the well costs (approximately US$170,000) will be recovered from future cost-oil from Tasour production. The drilling rig will be moved to a non-owned adjacent block for one well as part of a multi-well rig sharing contract to reduce costs. It is expected that the drilling rig will be available to the Block 32 Joint Venture group in June 2003, to drill a development well at Tasour #9.

This release includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the US 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.