TransGlobe Energy Corporation

SOUTH ALAMEIN

On June 29, 2011, TransGlobe announced the signing of a Sale and Purchase Agreement to acquire a 50% operated working interest in the South Alamein Concession in the Western Desert of the Arab Republic of Egypt from Cepsa Egypt SA B.V., subject to the approval of the Egyptian Government and customary closing conditions.  The South Alamein Concession is 2,258 square kilometres (558,120 acres) and includes portions of the Alamein and Tiba basins, surrounded by several oil and gas fields producing from the Cretaceous and Jurassic formations. The concession includes an oil discovery well, Boraq-2X, which tested a combined 1,700 Bopd of 38° to 40° API oil from two Cretaceous zones. Initial work by TransGlobe will focus on appraising and developing the Boraq–2X discovery which includes drilling at least two appraisal wells and readying the Boraq–2X well for production. An extensive 3-D seismic acquisition program was executed over the entire South Alamein Concession area.  This has resulted in several well-defined prospects throughout the area and will provide TransGlobe with numerous exploration drilling opportunities.