TransGlobe Energy Corporation

Reserves

RESERVES AND ESTIMATED FUTURE NET REVENUES

In 2008 and 2009, DeGolyer and MacNaughton Canada Limited ("DeGolyer") of Calgary, Alberta, independent petroleum engineering consultants based in Calgary and part of the DeGolyer and MacNaughton Worldwide Petroleum Consulting group headquartered in Dallas, Texas, were retained by the Company's Reserve Committee, to independently evaluate 100 percent of TransGlobe's reserves as at December 31, 2008 and December 31, 2009.

Total Proved reserves for the Company increased 53 percent from 12.6 million barrels of oil ("MMBbl") at December 31, 2008 to 19.2 MMBbl at December 31, 2009, representing a 303 percent production replacement in 2009.

Total Proved plus Probable reserves for the Company increased by 22 percent from 19.8 MMBbl at December 31, 2008 to 24.2 MMBbl at December 31, 2009, representing a production replacement of 234 percent in 2009.

Total Proved plus Probable plus Possible reserves for the Company increased by 9 percent from 28.0 MMBbl at December 31, 2008 to 30.5 MMBbl at December 31, 2009, representing a production replacement of 176 percent in 2009.

The Company's Reserves Committee, comprised of independent directors, has reviewed and recommended acceptance of the 2009 year-end reserve evaluations prepared by DeGolyer.

The 2008 and 2009 year-end reserves were prepared by the Company's independent reserve evaluators in accordance with the Canadian National Instrument (NI) 51-101 policy.

Disclosure provided herein in respect of Boe may be misleading, particularly if used in isolation. A Boe conversion ratio of 6 Mcf:1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

The recovery and reserve estimates of crude oil, NGL and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, NGL and natural gas reserves may be greater than, or less than, the estimates provided herein. Note that columns may not add due to rounding.

All reserves (gross and net) presented are based on DeGoyler's forecast pricing effective December 31, 2009 and December 31, 2008, respectively.

RESERVES

ESTIMATED FUTURE NET REVENUES

All evaluations and reviews of future net cash flow are stated prior to any provision for interest costs or general and administrative costs and after the deduction of estimated future capital expenditures for wells to which reserves have been assigned. It should not be assumed that the estimated future net cash flow shown below is representative of the fair market value of the Company's properties. There is no assurance that such price and cost assumptions will be attained and variances could be material. The recovery and reserve estimates of crude oil, NGL and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, NGL and natural gas reserves may be greater than or less than the estimates provided herein.

Pursuant to the SEC pronouncement in 2009, the Constant price case for 2009 is based on the average of the reference price received on the first of each month during 2009, adjusted from respective differentials at year ended 2009.  Prior to 2009, the 2008 constant price cased were run using the December 31, 2008 pricing.  The prices were held constant for the life of the reserves.

The following tables summarize the constant pricing used to estimate future net revenues:

* Egypt prices are based on prices received for production from West Gharib.
** Yemen prices are based on prices received for production from Block 32 and Block S-1.

The following table summarizes the independent evaluator's price forecast used to estimate future net revenues:

* Percentage change represents the increase in each year after 2013 to the end of the reserve life.