TransGlobe Energy Corporation Announces First Quarter 2014 Financial and Operating Results

TransGlobe Energy Corporation Announces First Quarter 2014 Financial and 
Operating Results 
NEWS RELEASE TRANSMITTED BY Marketwired 
FOR: TransGlobe Energy Corporation 
TSX SYMBOL:  TGL
NASDAQ SYMBOL:  TGA 
MAY 7, 2014 
TransGlobe Energy Corporation Announces First Quarter 2014 Financial and
Operating Results 
CALGARY, ALBERTA--(Marketwired - May 7, 2014) - TransGlobe Energy Corporation
("TransGlobe" or the "Company") (TSX:TGL)(NASDAQ:TGA) is
pleased to announce its financial and operating results for the three months
ended March 31, 2014. All dollar values are expressed in United States dollars
unless otherwise stated.  
/T/ 
--  First quarter production averaged 18,067 Bopd (17,932 Bopd sales); 
--  First quarter funds flow of $32.5 million; 
--  First quarter earnings of $16.7 million (includes a $3.5 million 
unrealized loss on convertible debentures); 
--  Spent $14.3 million on exploration and development during the quarter; 
--  Drilled nine wells in the quarter resulting in seven oil wells, one dry 
hole, and one well that was suspended for a future sidetrack; 
--  Ended the quarter with $107.6 million in cash and cash equivalents; 
positive working capital of $258.9 million or $171.1 million net of debt 
(including convertible debentures); 
--  Collected $29.4 million in accounts receivable from the Egyptian 
Government during the quarter; 
--  Received all access approvals for 15 of 18 wells at North West Gharib; 
drilling is expected to commence in June.  
/T/ 
A conference call to discuss TransGlobe's 2014 first quarter results
presented in this news release will be held Wednesday, May 7, 2014 at 9:00 AM
Mountain Time (11:00 AM Eastern Time) and is accessible to all interested
parties by dialing 416-340-2218 or toll free at 1-866-225-0198 (see also
TransGlobe's news release dated May 1, 2014). The webcast may be accessed
at http://www.gowebcasting.com/5453 
/T/ 
FINANCIAL AND OPERATING RESULTS                                           
(US$000s, except per share, price, volume amounts and % change)            
Three months ended March 31      
----------------------------------- 
Financial                                     2014        2013   % Change 
------------------------------------------------------------------------- 
------------------------------------------------------------------------- 
Oil revenue                                153,140     159,915         (4)
Oil revenue, net of royalties               78,366      79,366         (1)
Production and operating expense            19,578      14,532         35 
General and administrative expense           7,008       7,100         (1)
Depletion, depreciation and                                               
 amortization expense                       13,165      11,180         18 
Income taxes                                19,281      23,921        (19)
Funds flow from operations                  32,487      36,005        (10)
 Basic per share                              0.44        0.49            
 Diluted per share                            0.43        0.44            
Net earnings                                16,692      24,878        (33)
Net earnings - diluted                      16,692      21,427        (22)
 Basic per share                              0.22        0.34            
 Diluted per share                            0.22        0.26            
Capital expenditures                        14,365      18,193        (21)
Working capital                            258,858     277,997         (7)
Long-term debt, including current                                         
 portion                                         -      17,097       (100)
Convertible debentures                      87,765      93,842         (6)
Common shares outstanding                                                 
 Basic (weighted average)                   74,637      73,805          1 
 Diluted (weighted average)                 75,520      82,228         (8)
Total assets                               692,341     672,675          3 
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Operating                                                                 
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Average production volumes (Bopd)           18,067      18,001          - 
Average sales volumes (Bopd)                17,932      17,909          - 
Average price ($ per Bbl)                    94.89       99.21         (4)
Operating expense ($ per Bbl)                12.13        9.02         35 
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/T/ 
CORPORATE SUMMARY 
TransGlobe Energy Corporation's ("TransGlobe" or the
"Company") total production averaged 18,067 barrels of oil per day
("Bopd") during the quarter which is down slightly from Q4-2013
production. 
In the Eastern Desert the Company is currently proceeding with lease
construction on the approved NW Gharib wells. Drilling in NW Gharib is expected
to commence in June, with a second rig arriving in July. Year-to-date the
Company has drilled eleven wells in the Eastern Desert resulting in nine oil
wells, one water injector well and one well which was plugged back to surface
casing and suspended for a future sidetrack. The Company has received access
approvals to begin the seismic acquisition program in the NW Gharib, SW Gharib
and SE Gharib blocks, and expects seismic acquisition to commence in the third
quarter of 2014 subject to crew availability. The Eastern Desert seismic
acquisition program will include 1,000+ square kilometers of 3-D and 300+
kilometers of 2-D. 
In the Western Desert the Company participated in three wells year-to-date at
East Ghazalat, resulting in two oil wells and one dry hole. The 3-D seismic
acquisition program for the South Ghazalat block is expected to cover 800
square kilometers. TransGlobe has applied for and received military access
approvals for South Ghazalat. 
Dated Brent oil prices averaged $108.18 in the first quarter of 2014, which was
consistent with Q4-2013 prices. Egypt crude is sold at a quality discount to
Dated Brent and received a blended price of $94.43 during the quarter. The
Company had funds flow of $32.5 million and ended the quarter with positive
working capital of $258.9 million or $171.1 million net of debt (including the
convertible debentures). The Company collected $29.4 million of accounts
receivable from the Egyptian government during the quarter, resulting in an
accounts receivable balance of $174.0 million as at March 31, 2014. 
The Company had net earnings in the quarter of $15.6 million, which included a
$3.5 million non-cash unrealized loss on convertible debentures. The $3.5
million loss represents a fair value adjustment in accordance with IFRS, but
does not represent a cash loss or a change in the future cash outlay required
to repay the convertible debentures.  
On March 15, 2014, TransGlobe announced a proposed merger with Caracal Energy
Inc. ("Caracal"). On April 14, 2014, the arrangement agreement was
terminated due to the fact that Caracal received an unsolicited cash offer to
acquire all of the outstanding shares of Caracal, and the unsolicited offer
constituted a "Superior Proposal" under the terms of the arrangement
agreement. Accordingly, Caracal terminated the agreement and paid TransGlobe
the reverse termination fee of $9.25 million in accordance with the terms of
the agreement. The Company was disappointed with the termination of the
agreement to merge with Caracal. Although the Caracal merger was a much larger
transaction than what we had been seeking, it met all the attributes of a deal
that would have increased shareholder returns while maintaining our stated
strategy of onshore, operated oil development and exploration in our region of
expertise. Management and the board of directors remain committed to expanding
the Company's portfolio of assets to increase returns to shareholders and
mitigate the risks inherent in a concentrated portfolio, particularly political
or economic concentration. In addition, TransGlobe has obtained the required
approvals for the previously announced (and subsequently suspended) dividend of
$0.05/share per quarter. TransGlobe will also pay a special dividend of
$0.10/share from the proceeds of the reverse termination fee received from
Caracal. 
The Annual General and Special Meeting of Shareholders was rescheduled to June
10, 2014, which was the earliest date available following the termination of
the Caracal arrangement agreement.  
The Company remains in a strong financial position and is embarking on an
exciting period of high potential exploration commencing with drilling at NW
Gharib, in parallel with a large 3-D seismic acquisition program on the new
concessions. The Company believes that the same structural configuration that
created the pools found in the West Gharib and West Bakr concessions is present
in the NW Gharib, SW Gharib and SE Gharib blocks, which will be tested over the
next few years. In addition, the Company will continue to pursue business
development opportunities both within and outside of Egypt. 
/T/ 
Annual General and Special Meeting of Shareholders             
Tuesday, June 10, 2014 at 3:00 p.m. Mountain Time              
Centennial Place West, Ten Peaks Room                    
3rd Floor, 250 5th Street S.W., Calgary, Alberta, Canada          
/T/ 
OPERATIONS UPDATE 
ARAB REPUBLIC OF EGYPT 
West Gharib, Arab Republic of Egypt (100% working interest, operated) 
Operations and Exploration 
Five wells were drilled in the Arta/East Arta area during the first quarter
resulting in two Lower Nukhul oil wells, two Upper Nukhul oil wells, of which
one well was plugged back to surface casing and suspended for a future
sidetrack. The two Lower Nukhul oil wells were completed and placed on
production at initial rates of 300 Bopd and 700 Bopd respectively. The two
Upper Nukhul wells are scheduled for completion and stimulation during the
second quarter. 
Subsequent to quarter-end, one additional development oil well was drilled at
Hana, which is scheduled for completion in May. The drilling rig then moved to
the Arta well which was plugged and suspended in the first quarter for a
potential sidetrack location and is currently drilling. The drilling rig is
scheduled to remain in West Gharib during the first half of 2014 and is
scheduled to move to the North West Gharib concession for exploration/appraisal
drilling for the remainder of 2014. 
Production 
Production from West Gharib averaged 11,100 Bopd to TransGlobe during the first
quarter, a 7% (883 Bopd) decrease from the previous quarter. 
Production to TransGlobe averaged 10,230 Bopd in April. 
Production at West Gharib thus far in the year has been adversely impacted by a
combination of lower than expected drilling results, premature failures of new
progressive cavity pumps ("PCPs") and increased water cuts associated
with natural declines. 
The two Arta Lower Nukhul development wells drilled early in Q1 encountered
approximately 50% less net pay at the top of the structure. The two wells are
currently on production at approximately 1,000 Bopd combined, which is 1,000
Bopd less than in the original 2014 plan. 
In 2013, the Company received several consignments of PCPs from a new
manufacturer who was the successful bidder in the 2013 tender process. The new
pumps were used to replace existing PCPs and for new wells starting in late
2013 / early 2014. Unfortunately approximately 60% of the new pumps failed
prematurely from as early as a few weeks up to three months, which is
significantly less than the historical run times of 1 to 2 years for PCPs in
West Gharib. The poor PCP performance has adversely impacted 2014 production
due to increased down time associated with the more frequent pump changes,
slower response time for pump changes due to increased demands on service rig
availability and a shortage of properly sized replacement pumps which has
impacted well optimization plans. Approximately 40% of the West Gharib
production was produced using PCPs with the balance produced using sucker rod
pumps. The PCPs are often used for higher volume producers, which further
impacts production when shut-in for pump changes. The Company is working with
the pump manufacturer to determine if the problem is an elastomer design issue,
a manufacturing issue for this batch of pumps, or some combination of both. The
Company received a new consignment of pumps from this supplier which may or may
not have similar problems depending upon the root cause of the failures.
Concurrently the Company placed a special order for additional pumps with
another supplier/manufacturer which are expected to arrive in Egypt early in
the third quarter. The Company is currently tendering a 2 year supply agreement
for PCPs. This contract is expected to be awarded by early June, at which time
the Company can procure a proper supply of new pumps. It is estimated that the
PCP failures impacted 2014 average Q1 production by approximately 1,000 Bopd
and will continue to impact future production until the faulty pumps are
replaced with more reliable pumps. Given the current outlook for the supply
chain delivery time, we do not expect the pump situation to be fully resolved
and all wells properly optimized until Q4-2014. 
/T/ 
Quarterly West Gharib Production                                           
 (Bopd)                                  2014             2013             
--------------------------------------------------------------------------- 
Q-1       Q-4       Q-3       Q-2
---------------------------------------------------------------------------
Gross production rate                  11,100    11,983    12,274    12,829
TransGlobe working interest            11,100    11,983    12,274    12,829
TransGlobe net (after royalties)        6,350     6,600     6,865     7,066
TransGlobe net (after royalties and                                        
 tax) (i)                               4,562     4,592     4,812     4,995
---------------------------------------------------------------------------
(i) Under the terms of the West Gharib Production Sharing Concession,      
 royalties and taxes are paid out of the Government's share of production  
 sharing oil.                                                               
/T/ 
West Bakr, Arab Republic of Egypt (100% working interest, operated) 
Operations and Exploration 
The Company drilled three oil wells during the first quarter (two in the
K-field and one in the H-field). The first K-field well encountered oil in the
Asl A, B and E which was completed in the Asl E and placed on production at an
initial rate of 190 Bopd in late January. The second K-field well encountered
oil in the Asl A, which was completed and is producing approximately 20 Bopd
due to high water cuts. The H-field well only encountered oil in the Bakr
formation and was placed on production at the end of March at an initial rate
of 30 Bopd. 
Subsequent to quarter end, the Company drilled two wells in the H-field
resulting in an oil well and a water injection well for the H-field water
flood. The oil well encountered oil pay in the three Yusr zones (A, B & C)
and will be completed in the lower most Yusr C zone this month. 
The rig is currently drilling in the K-field and it is expected that it will
continue working in West Bakr throughout 2014. 
Production 
Production from West Bakr averaged 5,757 Bopd to TransGlobe during the first
quarter, a 4% (236 Bopd) increase from the previous quarter. Production
increases compared to 2013 are attributable to new drilling and successful well
work over activities. 
Production averaged 5,240 Bopd in April. In general 2014 production is behind
plan due to lower production from new wells, which is a combination of
completing multi-zone wells in the deeper formations first (which have lower
productivity due to thinner zones and structural proximity to water) along with
mixed early drilling results in 2014. 
/T/ 
Quarterly West Bakr Production                                             
 (Bopd)                                  2014             2013             
--------------------------------------------------------------------------- 
Q-1       Q-4       Q-3       Q-2
---------------------------------------------------------------------------
Gross production rate                   5,757     5,521     5,393     4,889
TransGlobe working interest             5,757     5,521     5,393     4,889
TransGlobe net (after royalties)        2,024     2,026     1,488     1,624
TransGlobe net (after royalties and                                        
 tax) (i)                               1,611     1,631     1,102     1,274
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(i) Under the terms of the West Bakr Production Sharing Concession,        
 royalties and taxes are paid out of the Government's share of production  
 sharing oil.                                                               
/T/ 
North West Gharib Block, Arab Republic of Egypt (100% working interest) 
Operations and Exploration 
During the fourth quarter of 2013 and the first quarter of 2014 the Company
prepared and submitted an initial 18 wells for the necessary approvals on the
North West Gharib ("NWG") block in the Eastern Desert. The Company
has received environmental approval for 18 wells and military access approval
for the first 15 wells submitted, with the remaining approvals anticipated in
the coming weeks. The Company is proceeding with lease construction on the
approved wells and is finalizing a long term drilling contract for a 1,200
horsepower ("hp") drilling rig which is expected to start drilling on
NWG #1 in June. The NWG #1 well is targeting an Upper/Lower Nukhul prospect
immediately north of the West Gharib main Arta Lower Nukhul pool. In addition,
the drilling rig currently in West Gharib is scheduled to move to NWG in July
and remain in NWG for the balance of the year. 
The Company has identified 79 drilling locations based on existing 3-D seismic
and geological modeling of the area. Based on current mapping the Company has
internally estimated a prospective resource of 71 million barrels on an
un-risked deterministic basis for the NWG block. The 2014 drilling program will
target up to 58 million barrels of the total 71 million barrels of prospective
resource identified to date. 
New Exploration Blocks, Eastern & Western Desert (100% working interest,
operated) 
Exploration Seismic 
Based on surface and remote-sensing mapping, the Company believes the same
structural configuration that created the pools found in the West Gharib
concession is likely present in the NWG, SW Gharib ("SWG") and SE
Gharib ("SEG") blocks. The historical field size distribution data
indicates that the average field size in the broader onshore Gulf of Suez
(Eastern Desert) area is roughly 20 million barrels per field of recoverable
resource. The Company has identified an additional 15 areas of interest
("leads") in the NWG block, four leads on the SWG block and two leads
on the SEG block that will be followed up and further refined by field mapping
and the high-resolution seismic acquisition program. The Company has approved a
large (1,000+ square kilometers of 3-D and 300+ kilometers of 2-D) seismic
acquisition program for the Eastern Desert in 2014. The Company has submitted
and received the necessary military approvals for the planned Eastern Desert
seismic program. The Company is targeting early Q3 to commence seismic
acquisition in the Eastern Desert. 
In the Western Desert, the Company will conduct an 800 square kilometer 3-D
seismic acquisition program during the initial evaluation of the South Ghazalat
concession. During the quarter the Company submitted the applications for and
received the necessary military approvals. This large block is situated on the
western margin of the prolific Abu Gharadig Basin, immediately west of the
non-operated East Ghazalat block, where a Jurassic gas-condensate discovery was
made and announced late in 2013. 
The total seismic program (approximately 1,800 square kilometers of 3-D seismic
and 300 kilometers of 2-D seismic) is out to tender, with bids due in early
May. It is expected that the contracts will be finalized and awarded during the
second quarter. The Company's target is to commence acquisition in the
Eastern Desert during third quarter of 2014 subject to crew availability. It is
expected the full program, providing broad coverage of the new concessions,
will be completed in early 2015. 
East Ghazalat Block, Arab Republic of Egypt (50% working interest) 
Operations and Exploration 
The Company participated in two wells during the quarter resulting in one oil
well at Safwa and one dry hole at East Ghazalat #3. Subsequent to the quarter
an additional oil well was drilled on the Safwa development lease. The drilling
rig was released following the completion of the three well drilling program. 
The first Safwa well was placed on production in mid-March at an initial
flowing rate of 680 Bopd. The second Safwa well was placed on production in
April at an initial pumping rate of 560 Bopd. 
The operator filed and received approval for the North Dabaa development lease
which includes 6 development blocks (approximately 18 square kilometers),
effective February 18, 2014. The Company has approved an exploration/appraisal
well offsetting the North Dabaa gas/condensate discovery (announced November
13, 2013 in the third quarter press release) as part of the 2014 capital
budget. The North Dabaa #2 well is planned to commence drilling in the third
quarter subject to rig availability. 
Production 
Production from East Ghazalat averaged 868 Bopd (434 Bopd to TransGlobe) during
Q1, a 30% increase from the previous quarter. Production increases are
attributed to the new Safwa producer which effectively doubled field production
in mid-March. 
The Safwa field production averaged 1,580 Bopd (790 Bopd to TransGlobe) in
April with the addition of the second Safwa development well drilled in April. 
/T/ 
Quarterly East Ghazalat Production                                         
 (Bopd)                                  2014             2013             
--------------------------------------------------------------------------- 
Q-1       Q-4       Q-3       Q-2
---------------------------------------------------------------------------
Gross production rate                     868       670       421       786
TransGlobe working interest               434       335       211       393
TransGlobe net (after royalties)          218       168       106       189
TransGlobe net (after royalties and                                        
 tax) (i)                                 174       134        84       149
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(i)Under the terms of the East Ghazalat Production Sharing Concession,     
 royalties and taxes are paid out of the Government's share of production.  
/T/ 
South Alamein, Arab Republic of Egypt (100% working interest, operated) 
Operations and Exploration 
The Company has not provided guidance for any wells in 2014 due to the
prolonged delays in receiving military approvals for new wells primarily in the
central portion of the concession which includes the Boraq discovery. The
Company has negotiated and received EGPC approval that the final exploration
period for approximately 800 square kilometers of the concession (which has
been deemed non accessible by the military due to ongoing training and other
activities in the area) will be suspended effective July 8, 2012. The South
Alamein concession was scheduled to reach the end of the final exploration
period on April 4, 2014. Effective April 4, 2014 the remaining exploration
lands outside of the restricted access zone were relinquished in accordance
with the concession agreement. The relinquished lands were evaluated and were
not considered prospective. The remaining lands and the South Alamein
concession agreement are extended until such time as military access is
approved, at which time the Company will have approximately 20 months to
complete additional exploration and appraisal in the final exploration phase.
All other provisions of the South Alamein concession agreement (including
historical cost pools of approximately $92.0 million) remain in place. The
current South Alamein concession lands include the Boraq discovery and the
remaining exploration prospects of interest. The Company continues to actively
engage the military to find solutions which will provide the access to the
remaining concession area. 
The Company has the financial capacity to increase the 2014 capital program if
the necessary approvals can be obtained in 2014. 
REPUBLIC OF YEMEN 
Block 32, Republic of Yemen (13.81% working interest) 
Operations and Exploration 
No wells were drilled during the first quarter. 
Production 
Sales production from Block 32 averaged 938 Bopd (130 Bopd to TransGlobe)
during the quarter. The reported gross sales production rate represents the
amount of oil that was lifted and sold during the quarter. It is expected that
sales production rates and the field production rates will vary quarter to
quarter depending on the timing of tanker liftings during the respective
quarter. 
The actual field production during the first quarter averaged 968 Bopd (134
Bopd to TransGlobe) which is approximately 50% lower than the previous quarter
due to pipeline and general service/supply interruptions. Production from Block
32 was shut-in February 9 due to tribal issues which have affected service and
supplies for the field operations in the region. Limited production operations
recommenced February 25 following the partial resumption of services. Some
progress has been made over the past 3 months, however, access to diesel
continues to be the main impediment to production. A portion of the Tasour
field is on production using diesel from the Tasour diesel topping plant; the
balance of the Tasour field and the Godah field were shut-in. 
Production from the block averaged 833 Bopd (115 Bopd to TransGlobe) during
April. The Godah field, which produces approximately 900 Bopd (125 Bopd to
TransGlobe) was restarted in early May. 
/T/ 
Quarterly Block 32 Production and                                          
 Sales (Bopd)                            2014             2013             
--------------------------------------------------------------------------- 
Q-1       Q-4       Q-3       Q-2
---------------------------------------------------------------------------
Gross field production rate               968     1,995     2,310     2,211
Gross sales production rate               938     2,718     1,673     3,100
TransGlobe working interest               130       375       231       428
TransGlobe net (after royalties)          103       283       169       264
TransGlobe net (after royalties and                                        
 tax) (i)                                  94       256       150       211
---------------------------------------------------------------------------
(i) Under the terms of the Block 32 Production Sharing Agreement, royalties 
and taxes are paid out of the Government's share of production.              
/T/ 
Block 72, Republic of Yemen (20% working interest) 
Operations and Exploration 
No new wells were drilled during the quarter. The joint venture partners
initially approved the Gabdain #3 exploration well in the 2013 budget, subject
to the resolution of logistic/security issues in the area which have not been
resolved to date. The well is included in the 2014 exploration budget subject
to resolution of tribal issues in the area. 
YEMEN WEST - Marib Basin 
Block S-1, Republic of Yemen (25% working interest) 
Operations and Exploration 
No wells were drilled during the first quarter. 
Production 
Sales production from Block S-1 averaged 2,044 Bopd (511 Bopd to TransGlobe)
during the quarter. The reported gross sales production rate represents the
amount of oil that was lifted and sold during the quarter. It is expected that
sales production rates and the field production rates will vary quarter to
quarter depending on the timing of tanker liftings during the respective
quarter. 
Field production averaged 2,568 Bopd during the first quarter (642 Bopd to
TransGlobe). 
Field production averaged approximately 3,447 Bopd (862 Bopd to TransGlobe)
during January and 4,436 Bopd (1,109 Bopd to TransGlobe) during February. Block
S-1 production was shut-in approximately 11 days in January due to export
pipeline restrictions. It had produced continuously during February until the
sales pipeline was attacked in late February. The pipeline attack was primarily
over unresolved contractor issues with local tribes which are under
negotiation. When a settlement is reached it is expected that the operations
and production will commence within a few days. 
/T/ 
Quarterly Block S-1 Production and                                         
 Sales (Bopd)                            2014             2013             
--------------------------------------------------------------------------- 
Q-1       Q-4       Q-3       Q-2
---------------------------------------------------------------------------
Gross field production rate             2,568     1,624         -         -
Gross sales production rate             2,044         -         -         -
TransGlobe working interest               511         -         -         -
TransGlobe net (after royalties)          357         -         -         -
TransGlobe net (after royalties and                                        
 tax) (i)                                 318         -         -         -
---------------------------------------------------------------------------
(i) Under the terms of the Block S-1 Production Sharing Agreement, royalties
and taxes are paid out of the Government's share of production.              
/T/ 
Block 75, Republic of Yemen (25% working interest) 
Operations and Exploration 
No wells were drilled during the quarter. 
Future drilling is suspended pending resolution of logistics and security
concerns. 
READER ADVISORIES 
Forward-Looking Statements 
Certain statements or information contained herein may constitute
forward-looking statements or information under applicable securities laws,
including, but not limited to, management's assessment of future plans and
operations, the anticipated amount and timing of future dividend payments, the
sustainability of future dividend payments, anticipated increases to the
Company's reserves and production, collection of accounts receivable from
the Egyptian Government, drilling plans and the timing thereof, commodity price
risk management strategies, adapting to the current political situations in
Egypt and Yemen, reserve estimates, management's expectation for results
of operations for 2014, including expected 2014 average production, funds flow
from operations, the 2014 capital program for exploration and development, the
timing and method of financing thereof, method of funding drilling commitments,
and commodity prices and expected volatility thereof. Statements relating to
"reserves" are deemed to be forward-looking statements, as they
involve the implied assessment, based on certain estimates and assumptions,
that the reserves described can be profitably produced in the future. 
Forward-looking statements or information relate to the Company's future
events or performance. All statements other than statements of historical fact
may be forward-looking statements or information. Such statements or
information are often but not always identified by the use of words such as
"seek", "anticipate", "plan",
"continue", "estimate", "expect",
"may", "will", "project", "predict",
"potential", "targeting", "intend",
"could", "might", "should", "believe",
and similar expressions. 
Forward-looking statements or information necessarily involve risks including,
without limitation, risks associated with oil and gas exploration, development,
exploitation, production, marketing and transportation, loss of markets,
economic and political instability, volatility of commodity prices, currency
fluctuations, imprecision of reserve estimates, environmental risks,
competition from other producers, inability to retain drilling rigs and other
services, incorrect assessment of the value of acquisitions, failure to realize
the anticipated benefits of acquisitions, delays resulting from or inability to
obtain required regulatory approvals and ability to access sufficient capital
from internal and external sources. The recovery and reserve estimates of the
Company's reserves provided herein are estimates only and there is no
guarantee that the estimated reserves will be recovered. Events or
circumstances may cause actual results to differ materially from those
predicted, as a result of the risk factors set out and other known and unknown
risks, uncertainties, and other factors, many of which are beyond the control
of the Company. 
In addition, forward-looking statements or information are based on a number of
factors and assumptions which have been used to develop such statements and
information in order to provide shareholders with a more complete perspective
on the Company's future operations. Such statements and information may
prove to be incorrect and readers are cautioned that such statements and
information may not be appropriate for other purposes. Although the Company
believes that the expectations reflected in such forward-looking statements or
information are reasonable, undue reliance should not be placed on
forward-looking statements or information because the Company can give no
assurance that such expectations will prove to be correct. In addition to other
factors and assumptions which may be identified herein, assumptions have been
made regarding, among other things: the impact of increasing competition; the
general stability of the economic and political environment in which the
Company operates; the timely receipt of any required regulatory approvals; the
ability of the Company to obtain qualified staff, equipment and services in a
timely and cost efficient manner; drilling results; the ability of the operator
of the projects which the Company has an interest in to operate the field in a
safe, efficient and effective manner; the ability of the Company to obtain
financing on acceptable terms; field production rates and decline rates; the
ability to replace and expand oil and natural gas reserves through acquisition,
development and exploration; the timing and costs of pipeline, storage and
facility construction and expansion and the ability of the Company to secure
adequate product transportation; future commodity prices; currency, exchange
and interest rates; the regulatory framework regarding royalties, taxes and
environmental matters in the jurisdictions in which the Company operates; and
the ability of the Company to successfully market and receive payment for its
oil and natural gas products. 
Readers are cautioned that the foregoing list is not exhaustive of all factors
and assumptions which have been used. As a consequence, actual results may
differ materially from those anticipated in the forward-looking statements.
Additional information on these and other factors that could affect the
Company's operations and financial results are included in reports on file
with Canadian securities regulatory authorities and may be accessed through the
SEDAR website (www.sedar.com), EDGAR website (www.sec.gov) and at the
Company's website (www.trans-globe.com). Furthermore, the forward-looking
statements or information contained herein are made as at the date hereof and
the Company does not undertake any obligation to update publicly or to revise
any of the included forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required by
applicable securities laws. 
The reader is further cautioned that the preparation of financial statements in
accordance with IFRS requires management to make certain judgments and
estimates that affect the reported amounts of assets, liabilities, revenues and
expenses. Estimating reserves is also critical to several accounting estimates
and requires judgments and decisions based upon available geological,
geophysical, engineering and economic data. These estimates may change, having
either a negative or positive effect on net earnings as further information
becomes available, and as the economic environment changes. 
DIVIDENDS 
On May 5, 2014, TransGlobe's Board of Directors approved and declared a
special dividend of $0.10 per share and the initial quarterly dividend of $0.05
per share, payable in cash as follows: 
/T/ 
Ex-dividend date         Record date      Payment date    Per share amount
--------------------------------------------------------------------------
May 20, 2014            May 22, 2014      May 28, 2014               $0.10
June 12, 2014          June 16, 2014     June 30, 2014               $0.05
-------------------------------------------------------------------------- 
/T/ 
The initiation of a quarterly dividend payment program is a key component of
TransGlobe's objective to create value for its shareholders. The Company
believes that it is well positioned to sustain a modest quarterly dividend
payment, and intends to approve and declare regular quarterly dividends on a
go-forward basis. 
The actual amount of future quarterly dividends will be proposed by management
and subject to the approval and discretion of the Board. The Board reviews
proposed dividend payments in conjunction with their review of quarterly
financial and operating results. Future dividend levels will be dependent upon
economic factors including commodity prices, capital expenditure programs and
production volumes, and will be evaluated regularly to ensure that dividend
payments do not compromise the strong financial position or the growth of the
Company. 
The dividends (both special and quarterly) declared on May 5, 2014 have been
designated as eligible dividends under the Income Tax Act (Canada). 
MANAGEMENT STRATEGY AND OUTLOOK 
The 2014 outlook provides information as to management's expectation for
results of operations for 2014. Readers are cautioned that the 2014 outlook may
not be appropriate for other purposes. The Company's expected results are
sensitive to fluctuations in the business environment and may vary accordingly.
This outlook contains forward-looking statements that should be read in
conjunction with the Company's disclosure under "Forward-Looking
Statements". 
2014 Production Outlook 
Production guidance has been lowered to a range of 17,000 to 19,000 Bopd for
2014, with a mid-point of 18,000 Bopd. The 18,000 Bopd mid-point of guidance
for 2014 is essentially flat with 2013 production. The changes in 2014
production guidance are summarized below. 
In Egypt, production from West Gharib is approximately 1,500 Bopd behind the
2014 plan due to premature progressive cavity pump ("PCP") failures
and two high volume development wells at Arta which are producing at 50% of the
planned volumes. West Bakr production is approximately 900 Bopd behind the 2014
plan due to mixed drilling results in early 2014. East Ghazalat production is
approximately 200 Bopd ahead of the 2014 plan due to positive development
drilling at Safwa. The Company has not included any production from the North
West Gharib ("NWG") and South Alamein concessions in the 2014 plan.
The Company is planning to drill 14 to 16 wells at NWG in 2014 (starting early
June) which could impact production in late 2014 if successful and approved for
development prior to the fourth quarter. Development of the South Alamein Boraq
discovery remains contingent upon receiving surface access approvals from the
Military. 
In Yemen, Block 32 is approximately 300 Bopd behind the 2014 plan due to
regional tribal issues which has restricted diesel supplies and shut down
development/appraisal drilling activities planned for 2014. Block S-1 is
forecast to produce at 50% for the year due to ongoing tribal negotiations. 
Year-to-date 2014 production is described in greater detail in the Operations
Update section of the interim report. The reduction in production guidance for
2014 has not impacted reserves assigned at year end 2013. 
In the near-term, second quarter production is expected to range between 16,500
and 17,000 Bopd due to uncertainties relating to the performance of PCPs in
West Gharib and tribal issues in Yemen. 
/T/ 
Production Forecast                                                       
2014 Guidance  2014 Mid-point  2013 Actual % Change 
------------------------------------------------------------------------ 
Barrels of oil per                                                       
 day               17,000 - 19,000          18,000       18,284     (1.5)
------------------------------------------------------------------------ 
------------------------------------------------------------------------  
/T/ 
2014 Funds Flow From Operations Outlook 
Funds flow from operations guidance of $125.0 million ($1.66/share), which is
based on an annual average Dated Brent oil price of $100/Bbl and using the
mid-point of the production guidance. The funds flow sensitivity to a $10/Bbl
change in Brent for the balance of the year is approximately $11 million. 
/T/ 
Funds Flow Forecast                                                        
($ millions)             2014 Guidance       2013 Actual          % Change 
-------------------------------------------------------------------------- 
-------------------------------------------------------------------------- 
Funds flow from                                                            
 operations                      125.0             139.1               (10)
-------------------------------------------------------------------------- 
Brent oil price ($                                                         
 per bbl)                       100.00            108.64                (8)
-------------------------------------------------------------------------- 
-------------------------------------------------------------------------- 
2014 Capital Budget                                                       
($ millions)                                                              
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Egypt                                                                 93.6
Yemen                                                                  6.4
--------------------------------------------------------------------------
Total                                                                100.0
--------------------------------------------------------------------------
-------------------------------------------------------------------------- 
/T/ 
The 2014 capital program is split 68:32 between development and exploration,
respectively. The Company plans to participate in 51 wells in 2014. It is
anticipated that the Company will fund its 2014 capital budget from funds flow
from operations and working capital. 
ADDITIONAL MEASURES 
Funds Flow from Operations 
This document contains the term "funds flow from operations", which
should not be considered an alternative to or more meaningful than "cash
flow from operating activities" as determined in accordance with IFRS.
Funds flow from operations is a measure that represents cash generated from
operating activities before changes in non-cash working capital. Management
considers this a key measure as it demonstrates TransGlobe's ability to
generate the cash flow necessary to fund future growth through capital
investment. Funds flow from operations may not be comparable to similar
measures used by other companies. 
Reconciliation of Funds Flow from Operations 
/T/ 
Three months ended March 31 
------------------------------------------------------------------------- 
($000s)                                                 2014         2013 
------------------------------------------------------------------------- 
------------------------------------------------------------------------- 
Cash flow from operating activities                    3,211       51,900 
Changes in non-cash working capital                   29,276      (15,895)
------------------------------------------------------------------------- 
Funds flow from operations(i)                         32,487       36,005 
------------------------------------------------------------------------- 
------------------------------------------------------------------------- 
(i) Funds flow from operations does not include interest costs. Interest    
expense is included in financing costs on the Condensed Consolidated Interim
Statements of Earnings and Comprehensive Income. Cash interest paid is      
reported as a financing activity on the Condensed Consolidated Interim      
Statements of Cash Flows.                                                    
/T/ 
Debt-to-funds flow ratio 
Debt-to-funds flow is a measure that is used to set the amount of capital in
proportion to risk. The Company's debt-to-funds flow ratio is computed as
long-term debt, including the current portion, plus convertible debentures over
funds flow from operations for the trailing twelve months. Debt-to-funds flow
may not be comparable to similar measures used by other companies. 
Netback 
Netback is a measure that represents sales net of royalties (all government
interests, net of income taxes), operating expenses and current taxes.
Management believes that netback is a useful supplemental measure to analyze
operating performance and provide an indication of the results generated by the
Company's principal business activities prior to the consideration of
other income and expenses. Netback may not be comparable to similar measures
used by other companies. 
TRANSGLOBE'S BUSINESS 
TransGlobe is a Canadian-based, publicly traded, oil exploration and production
company whose activities are concentrated in two main geographic areas: the
Arab Republic of Egypt ("Egypt") and the Republic of Yemen
("Yemen"). 
SELECTED QUARTERLY FINANCIAL INFORMATION 
/T/ 
2014              2013                        2012          
----------------------------------------------------------------------------
($000s, except per share,                                                   
 price and volume amounts)                                                   
Q-1     Q-4     Q-3     Q-2     Q-1     Q-4     Q-3     Q-2
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Average                                                                     
 production                                                                 
 volumes                                                                    
 (Bopd)       18,067  18,519  18,197  18,417  18,001  17,875  18,143  16,978 
Average sales                                                               
 volumes                                                                    
 (Bopd)       17,932  18,213  18,109  18,539  17,909  19,148  17,124  16,978
Average price                                                               
 ($/Bbl)       94.89   96.10   97.18   90.48   99.21   98.70   96.88   95.84
Oil sales    153,140 161,035 161,900 152,646 159,915 173,864 152,624 148,078
Oil sales,                                                                  
 net of                                                                     
 royalties    78,366  81,196  78,531  76,223  79,366  92,281  74,540  73,633
Cash flow                                                                   
 from                                                                       
 operating                                                                  
 activities    3,211 109,226  22,035  16,347  51,900  65,250   2,368  24,603
Funds flow                                                                  
 from                                                                       
 operations                                                                 
 (i)          32,487  36,743  33,483  32,887  36,005  46,839  35,397  35,174
Funds flow                                                                  
 from                                                                       
 operations                                                                 
 per share                                                                  
 - Basic        0.44    0.49    0.45    0.45    0.49    0.63    0.49    0.48
 - Diluted      0.43    0.49    0.44    0.40    0.44    0.57    0.47    0.43
Net earnings  16,692   6,893  16,344  10,397  24,878  34,836  11,774  30,149
Net earnings                                                                
 - diluted    16,692   6,893  16,344    (183) 21,427  32,156  11,774  20,821
Net earnings                                                                
 per share                                                                  
 - Basic        0.22    0.09    0.22    0.14    0.34    0.48    0.16    0.41
 - Diluted      0.22    0.09    0.22       -    0.26    0.39    0.16    0.25
Total assets 692,341 675,800 723,708 670,996 672,675 653,425 635,529 620,937
Cash and cash                                                               
 equivalents 107,607 122,092 128,162 101,435 112,180  82,974  45,732  72,230
Convertible                                                                 
 debentures   87,765  87,539  85,300  81,830  93,842  98,742 102,920  95,043
Total long-                                                                 
 term debt,                                                                 
 including                                                                  
 current                                                                    
 portion           -       -  39,040  15,224  17,097  16,885  31,878  37,855
Debt-to-funds                                                               
 flow ratio                                                                 
 (ii)            0.6     0.6     0.8     0.6     0.7     0.8     1.0     1.0
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
(i) Funds flow from operations is a measure that represents cash generated  
 from operating activities before changes in non-cash working capital and   
 may not be comparable to measures used by other companies.                 
(ii) Debt-to-funds flow ratio is measure that represents total long-term    
 debt (including the current portion) plus convertible debentures over funds
 flow from operations from the trailing 12 months and may not be comparable 
 to measures used by other companies.                                        
/T/ 
During the first quarter of 2014, TransGlobe has: 
/T/ 
--  Maintained a strong financial position, reporting a debt-to-funds flow 
ratio of 0.6 at March 31, 2014; 
--  Reported net earnings of $16.7 million, which includes a $3.5 million 
unrealized non-cash loss on convertible debentures; 
--  Experienced a decrease in oil sales compared to Q1-2013 primarily as a 
result of decreased oil prices; 
--  Achieved funds flow from operations of $32.5 million; 
--  Experienced a significant decrease in cash flow from operating 
activities as compared to Q4-2013, which was almost entirely due to 
higher cash collections in Q4-2013; and 
--  Spent $14.4 million on capital programs, which was funded entirely with 
funds flow from operations.  
/T/ 
2014 TO 2013 NET EARNINGS VARIANCES 
/T/ 
$ Per Share              
$000s    Diluted  % Variance 
-------------------------------------------------------------------------- 
-------------------------------------------------------------------------- 
Q1-2013 net earnings(i)                     24,878        0.33             
-------------------------------------------------------------------------- 
Cash items                                                                 
Volume variance                                184           -           - 
Price variance                              (6,959)      (0.09)        (28)
Royalties                                    5,775        0.08          23 
Expenses:                                                                  
 Production and operating                   (5,046)      (0.07)        (20)
 Cash general and administrative              (362)          -          (1)
 Exploration                                  (331)          -          (1)
 Current income taxes                        3,180        0.04          13 
 Realized foreign exchange gain (loss)         (10)          -           - 
 Interest on long-term debt                    324           -           1 
Other income                                    51           -           - 
-------------------------------------------------------------------------- 
Total cash items variance                   (3,194)      (0.04)        (13)
-------------------------------------------------------------------------- 
Non-cash items                                                             
Unrealized foreign exchange gain             1,602        0.02           6 
Depletion and depreciation                  (1,985)      (0.03)         (8)
Unrealized gain (loss) on financial                                        
 instruments                                (6,509)      (0.09)        (26)
Stock-based compensation                       444        0.01           2 
Deferred income taxes                        1,460        0.02           6 
Deferred lease inducement                       10           -           - 
Amortization of deferred financing                                         
 costs                                         (14)          -           - 
-------------------------------------------------------------------------- 
Total non-cash items variance               (4,992)      (0.07)        (20)
-------------------------------------------------------------------------- 
Q1-2014 net earnings                        16,692        0.22         (33)
-------------------------------------------------------------------------- 
-------------------------------------------------------------------------- 
(i) Diluted earnings per share for Q1-2013 is presented prior to the       
 dilutive effect of the convertible debentures in that period               
/T/ 
Net earnings decreased to $16.7 million in Q1-2014 compared to $24.9 million in
Q1-2013. Reduced prices and increased production and operating costs resulted
in a reduction in government take as a percentage of revenue from 65% in
Q1-2013 to 62% in Q1-2014. The resulting decreases in royalties and current
income taxes offset approximately 75% of the impact of decreased prices and
increased operating costs. The remaining earnings variance relates mostly to
the recognition of an unrealized loss on convertible debentures of $3.5 million
in Q1-2014 compared with an unrealized gain on convertible debentures of $3.0
million in Q1-2013. 
BUSINESS ENVIRONMENT 
The Company's financial results are influenced by fluctuations in
commodity prices, including price differentials. The following table shows
select market benchmark prices and foreign exchange rates: 
/T/ 
2014              2013              
--------------------------------------------------------------------------- 
Q-1     Q-4     Q-3     Q-2     Q-1
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Dated Brent average oil price                                              
 ($/Bbl)                             108.18  109.27  110.27  102.44  112.59
U.S./Canadian Dollar average                                               
 exchange rate                        1.103   1.050   1.039   1.023   1.009
---------------------------------------------------------------------------
--------------------------------------------------------------------------- 
/T/ 
The average price of Dated Brent oil averaged 1% lower in Q1-2014 compared with
Q4-2013. All of the Company's production is priced based on Dated Brent
and shared with the respective governments through PSCs. When the price of oil
increases, it takes fewer barrels to recover costs (cost recovery barrels)
which are assigned 100% to the Company. The contracts provide for cost recovery
per quarter up to a maximum percentage of total revenue. Timing differences
often exist between the Company's recognition of costs and their recovery
as the Company accounts for costs on an accrual basis, whereas cost recovery is
determined on a cash basis. If the eligible cost recovery is less than the
maximum defined cost recovery, the difference is defined as "excess".
In Egypt, depending on the PSC, the Contractor's share of excess ranges
between 0% and 30%. In Yemen, under the Production Sharing Agreements, the
excess is treated as production sharing oil. If the eligible cost recovery
exceeds the maximum allowed percentage, the unclaimed cost recovery is carried
forward to the next quarter. Typically maximum cost recovery or cost oil ranges
from 25% to 30% in Egypt and 50% to 60% in Yemen. The balance of the production
after maximum cost recovery is shared with the respective governments
(production sharing oil). In Egypt, depending on the contract, the government
receives 70% to 86% of the production sharing oil or profit oil. In Yemen, the
government receives 65% of the production sharing oil or profit oil. Production
sharing splits are set in each contract for the life of the contract. Typically
the government's share of production sharing oil increases when production
exceeds pre-set production levels in the respective contracts. During times of
increased oil prices, the Company receives less cost oil and may receive more
production sharing oil. For reporting purposes, the Company records the
respective government's share of production as royalties and taxes (all
taxes are paid out of the Government's share of production). 
Egypt has been experiencing significant political changes over the past three
years and while this has had an impact on the efficient operations of the
government in general, business processes and the Company's operations
have generally proceeded as normal. While exploration and development
activities have generally been uninterrupted, the Company has continued to
experience delays in the collection of accounts receivable from the Egyptian
Government. The Company is in continual discussions with the Egyptian
Government to improve the delayed cash collections, and expects to recover the
accounts receivable balance in full. During the first quarter of 2014, the
Company collected $29.4 million in accounts receivable from the Egyptian
Government. 
The Company has received environmental approvals for all 18 well plans
submitted for the NW Gharib block, and has received military approvals for the
first 15 well plans submitted. The remaining military approvals are expected in
the coming weeks. In addition, our partner that operates the East Ghazalat
concession filed and received an approved development plan for the North Dabaa
discovery in the first quarter. The timely receipt of these approvals is a
positive indication that Egypt's oil and gas processes continue to
normalize despite the recent political changes. 
OPERATING RESULTS AND NETBACK 
Daily Volumes, Working Interest before Royalties and Other (Bopd) 
Sales Volumes 
/T/ 
Three months ended March 31
-------------------------------------------------------------------------- 
2014          2013
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Egypt                                                 17,291        17,667
Yemen                                                    641           242
--------------------------------------------------------------------------
Total Company                                         17,932        17,909
--------------------------------------------------------------------------
-------------------------------------------------------------------------- 
/T/ 
Netback 
/T/ 
Consolidated                                                                
Three months ended March 31
--------------------------------------------------------------------------- 
2014                2013        
---------------------------------------------------------------------------
(000s, except per Bbl amounts)              $     $/Bbl         $     $/Bbl
---------------------------------------------------------------------------
Oil sales                             153,140     94.89   159,915     99.21
Royalties                              74,774     46.33    80,549     49.97
Current taxes                          19,894     12.33    23,074     14.32
Production and operating expenses      19,578     12.13    14,532      9.02
---------------------------------------------------------------------------
Netback                                38,894     24.10    41,760     25.90
--------------------------------------------------------------------------- 
Egypt                                                                       
Three months ended March 31
--------------------------------------------------------------------------- 
2014                2013       
---------------------------------------------------------------------------
(000s, except per Bbl amounts)              $     $/Bbl         $     $/Bbl
---------------------------------------------------------------------------
Oil sales                             146,944     94.43   157,489     99.05
Royalties                              73,023     46.92    79,644     50.09
Current taxes                          19,435     12.49    22,790     14.33
Production and operating expenses      16,307     10.48    12,731      8.01
---------------------------------------------------------------------------
Netback                                38,179     24.54    42,324     26.62
--------------------------------------------------------------------------- 
/T/ 
The netback per Bbl in Egypt decreased 8% in Q1-2014 compared with Q1-2013. The
main reason for the decreased netback was the effect of a 5% reduction in
realized oil prices as compared to Q1-2013. Production and operating expenses
increased by 31% on a per Bbl basis, which was principally related to a
significant increase in well servicing costs relating to faulty progressive
cavity pumps at West Gharib, which has also negatively impacted production,
combined with increased fuel costs. The increase in production and operating
expenses resulted in an increase in cost oil allocated to the Company, which
reduced royalties and taxes on a per Bbl basis. In Q1-2014, the average selling
price was $13.75/Bbl lower (Q1-2013 - $13.54 lower) than the average Dated
Brent oil price for the period of $108.18/Bbl (Q1-2013 - $112.59) which is a
result of a gravity/quality adjustment.  
Royalties and taxes as a percentage of revenue decreased to 63% in Q1-2014
compared with 65% in Q1-2013. This decrease is due to higher operating costs
which has increased the Company's cost recovery, combined with decreased
oil prices which reduces excess cost oil. 
/T/ 
Yemen                                                                       
Three months ended March 31  
--------------------------------------------------------------------------  
2014                2013        
-------------------------------------------------------------------------- 
(000s, except per Bbl amounts)              $     $/Bbl        $     $/Bbl 
-------------------------------------------------------------------------- 
-------------------------------------------------------------------------- 
Oil sales                               6,196    107.40    2,426    111.39 
Royalties                               1,751     30.35      905     41.55 
Current taxes                             459      7.96      284     13.04 
Production and operating expenses       3,271     56.70    1,801     82.69 
-------------------------------------------------------------------------- 
Netback                                   715     12.39     (564)   (25.89)
-------------------------------------------------------------------------- 
--------------------------------------------------------------------------  
/T/ 
In Yemen, the Company achieved a netback per Bbl of $12.39 in the three months
ended March 31, 2014. While production and operating expenses per Bbl were
reduced substantially as compared to Q1-2013, they remain at elevated levels in
Q1-2014 as a result of production shut-ins on Block S-1 and Block 32 during the
quarter. While production volumes were down, the Company continued to incur the
majority of the operating costs which significantly impacted operating expenses
per Bbl. These operating costs will be recovered from cost oil when production
resumes. 
Royalties and taxes as a percentage of revenue decreased to 36% from 49% in the
three months ended March 31, 2014, compared with 2013. The reduced government
take is the result of the recovery of cost pools that were built up in 2013
while Block S-1 was shut-in. 
GENERAL AND ADMINISTRATIVE EXPENSES ("G&A") 
/T/ 
Three months ended March 31 
--------------------------------------------------------------------------  
2014                2013 
-------------------------------------------------------------------------- 
(000s, except Bbl amounts)                  $    $/Bbl         $     $/Bbl 
-------------------------------------------------------------------------- 
-------------------------------------------------------------------------- 
G&A (gross)                            7,810      4.84     6,907      4.29 
Stock-based compensation                 834      0.52     1,278      0.79 
Capitalized G&A and overhead                                               
 recoveries                           (1,636)    (1.01)   (1,085)    (0.67)
-------------------------------------------------------------------------- 
G&A (net)                              7,008      4.35     7,100      4.41 
-------------------------------------------------------------------------- 
--------------------------------------------------------------------------  
/T/ 
G&A expenses in Q1-2014 were consistent with Q1-2013 both on a net and per
Bbl basis. G&A (gross) was elevated in Q1-2014 compared to Q1-2013 mostly
due to an increase in banking fees associated with the letters of credit ($60.5
million) required to backstop the Company's financial commitments under
the recently ratified PSCs in Egypt. These banking fees were capitalized in
their respective concessions, which is the reason for the increased capitalized
G&A. The reduction in stock-based compensation is mainly due to a 21%
reduction in the number of outstanding stock options as at March 31, 2014
compared to March 31, 2013, combined with the fact that the stock options
outstanding in Q1-2014 are on average further along in their life cycles than
those that were outstanding in Q1-2013. 
FINANCE COSTS 
Finance costs for the three-month period ended March 31, 2014 decreased to $1.9
million compared with $2.2 million in the same period in 2013. Interest expense
on the convertible debentures for the three-month period ended March 31, 2014
was $1.3 million (Q1-2013 - $1.5 million). The decrease in this portion of the
interest expense is due to foreign exchange fluctuations, as the interest on
the convertible debentures is paid in Canadian dollars. The remaining decrease
in interest expense is due to a lower utilization of the Company's
Borrowing Base Facility as at March 31, 2014 compared to March 31, 2013.  
/T/ 
-------------------------------------------------------------------------- 
Three months ended March 31
--------------------------------------------------------------------------
(000s)                                                  2014          2013
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Interest expense                                    $  1,616      $  1,940
Amortization of deferred financing costs                 276           262
--------------------------------------------------------------------------
Finance costs                                       $  1,892      $  2,202
--------------------------------------------------------------------------
-------------------------------------------------------------------------- 
/T/ 
The Company had no long-term debt outstanding under the Borrowing Base Facility
as at March 31, 2014 (March 31, 2013 - $18.5 million). The term of the facility
extends to December 31, 2017 and the borrowing base is currently $100.0
million. The Borrowing Base Facility bears interest at LIBOR plus an applicable
margin that varies from 5.0% to 5.5% depending on the amount drawn or utilized
under the facility. 
In February 2012, the Company sold, on a bought-deal basis, C$97.8 million
($97.9 million) aggregate principal amount of convertible unsecured
subordinated debentures with a maturity date of March 31, 2017. The debentures
are convertible at any time and from time to time into common shares of the
Company at a price of C$15.10 per common share. Under certain circumstances the
debentures may also be redeemed by the Company. The conversion price of the
convertible debentures will adjust for any amounts paid out as dividends on the
common shares of the Company. Interest of 6% is payable semi-annually in
arrears on March 31 and September 30. At maturity or redemption, the Company
has the option to settle all or any portion of principal obligations by
delivering to the debenture holders sufficient common shares to satisfy these
obligations. 
DEPLETION AND DEPRECIATION ("DD&A") 
/T/ 
Three months ended March 31
--------------------------------------------------------------------------- 
2014                2013
---------------------------------------------------------------------------
(000s, except per Bbl amounts)              $     $/Bbl         $     $/Bbl
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Egypt                                  12,370      7.95    10,890      6.85
Yemen                                     702     12.17       202      9.27
Corporate                                  93         -        88         -
--------------------------------------------------------------------------- 
13,165      8.16    11,180      6.94
---------------------------------------------------------------------------
--------------------------------------------------------------------------- 
/T/ 
In Egypt, DD&A increased 16% on a per Bbl basis in the three months ended
March 31, 2014 compared to 2013. This increase is mostly due to a lower reserve
base over which to deplete costs in Egypt along with increased future capital
costs at West Bakr. 
In Yemen, DD&A increased 31% on a per Bbl basis in the three months ended
March 31, 2014 compared to 2013 due to a declining reserve base at Block 32
combined with increased future capital costs. 
CAPITAL EXPENDITURES 
/T/ 
Three months ended March 31
--------------------------------------------------------------------------
($000s)                                                 2014          2013
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Egypt                                                 13,916        17,688
Yemen                                                    434           495
Corporate                                                 15            10
--------------------------------------------------------------------------
Total                                                 14,365        18,193
--------------------------------------------------------------------------
-------------------------------------------------------------------------- 
/T/ 
In Egypt, total capital expenditures in 2014 were $13.9 million (2013 - $17.7
million). During Q1-2014, the Company drilled five wells in West Gharib (four
oil wells and one well which was plugged back to surface casing and suspended
for a future sidetrack). The Company also drilled three oil wells at West Bakr
and two wells at East Ghazalat (one oil well and one dry hole).  
OUTSTANDING SHARE DATA 
As at March 31, 2014, the Company had 74,714,494 common shares issued and
outstanding and 5,595,467 stock options issued and outstanding, which are
exercisable in accordance with their terms into a maximum of 5,595,467 common
shares of the Company.  
LIQUIDITY AND CAPITAL RESOURCES 
Liquidity describes a company's ability to access cash. Companies
operating in the upstream oil and gas industry require sufficient cash in order
to fund capital programs necessary to maintain and increase production and
reserves, to acquire strategic oil and gas assets and to repay debt.
TransGlobe's capital programs are funded principally by cash provided from
operating activities. A key measure that TransGlobe uses to evaluate the
Company's overall financial strength is debt-to-funds flow from operations
(calculated on a 12-month trailing basis). TransGlobe's debt-to-funds flow
from operations ratio, a key short-term leverage measure, remained strong at
0.6 times at March 31, 2014 (December 31, 2013 - 0.8). This was within the
Company's internal guideline of no more than 2.0 times. The following
table illustrates TransGlobe's sources and uses of cash during the periods
ended March 31, 2014 and 2013: 
/T/ 
Sources and Uses of Cash                                                   
Three months ended March 31
--------------------------------------------------------------------------
($000s)                                                2014           2013
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Cash sourced                                                              
 Funds flow from operations(i)                       32,487         36,005
 Exercise of options                                    716            396
-------------------------------------------------------------------------- 
33,203         36,401
Cash used                                                                 
 Capital expenditures                                14,365         18,193
 Deferred financing costs                                 -             50
 Transfer to restricted cash                              1              1
 Finance costs                                        3,847          3,373
 Other                                                  514            580
-------------------------------------------------------------------------- 
18,727         22,197
-------------------------------------------------------------------------- 
14,476         14,204
Changes in non-cash working capital                 (28,961)        15,002
--------------------------------------------------------------------------
Increase (decrease) in cash and cash                                      
 equivalents                                        (14,485)        29,206
Cash and cash equivalents - beginning of                                  
 period                                             122,092         82,974
--------------------------------------------------------------------------
Cash and cash equivalents - end of period           107,607        112,180
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(i) Funds flow from operations is a measure that represents cash generated
 from operating activities before changes in non-cash working capital, and
 may not be comparable to measures used by other companies.                
/T/ 
Funding for the Company's capital expenditures was provided by funds flow
from operations. The Company expects to fund its 2014 exploration and
development program of $100.0 million including contractual commitments through
the use of working capital and cash generated by operating activities.
Fluctuations in commodity prices, product demand, foreign exchange rates,
interest rates and various other risks including timely collections of accounts
receivable from the Egyptian Government may impact capital resources. 
Working capital is the amount by which current assets exceed current
liabilities. At March 31, 2014, the Company had working capital of $258.9
million (December 31, 2013 - $242.0 million). The increase to working capital
in Q1-2014 is due almost entirely to an increase in accounts receivable, which
was partially offset by a decrease in cash and cash equivalents. The majority
of the Company's accounts receivable are due from Egyptian General
Petroleum Company ("EGPC"), and the recent political changes in the
country have increased EGPC's credit risk, which has increased the
Company's credit risk. The Company is in continual discussions with EGPC
and the Egyptian Government to improve the delayed cash collections, and
expects to recover the entire accounts receivable balance in full. 
To date, the Company has experienced no difficulties with transferring funds
abroad. 
At March 31, 2014, TransGlobe had $100.0 million available under a Borrowing
Base Facility of which no amounts were drawn, however, the Company was
utilizing $60.5 million in the form of letters of credit.  
COMMITMENTS AND CONTINGENCIES 
As part of its normal business, the Company entered into arrangements and
incurred obligations that will impact the Company's future operations and
liquidity. The principal commitments of the Company are as follows: 
/T/ 
Payment Due by Period (1 2)            
--------------------------------------------------------------------------- 
Recognized                                      More 
in                         Less                 than 
Financial    Contractual   than     1-3   4-5      5
($000s)                Statements    Cash Flows 1 year   years years  years
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Accounts payable and   Yes -                                               
 accrued liabilities   Liability         37,096 37,096       -     -      -
Convertible debentures Yes -                                                
Liability         87,765      -  87,765     -      -
Office and equipment   No                                                  
 leases (3)                              13,554  7,867   2,611 1,890  1,186
Minimum work           No                                                  
 commitments (4)                         61,250    750  60,500     -      -
---------------------------------------------------------------------------
Total                                   199,665 45,713 150,876 1,890  1,186
---------------------------------------------------------------------------
(1) Payments exclude ongoing operating costs, finance costs and payments   
 made to settle derivatives.                                               
(2) Payments denominated in foreign currencies have been translated at     
 March 31, 2014 exchange rates.                                            
(3) Office and equipment leases include all drilling rig contracts.        
(4) Minimum work commitments include contracts awarded for capital projects
 and those commitments related to exploration and drilling obligations.     
/T/ 
Pursuant to the PSC for North West Gharib in Egypt, the Company has a minimum
financial commitment of $35.0 million and a work commitment to drill 30 wells
and acquire 200 square kilometers of 3-D seismic during the initial-three year
exploration period, which commenced on November 7, 2013. 
Pursuant to the PSC for South East Gharib in Egypt, the Company has a minimum
financial commitment of $7.5 million and a work commitment to drill two wells,
acquire 200 square kilometers of 3-D seismic and acquire 300 kilometers of 2-D
seismic during the initial three-year exploration period, which commenced on
November 7, 2013. 
Pursuant to the PSC for South West Gharib in Egypt, the Company has a minimum
financial commitment of $10.0 million and a work commitment to drill four wells
and acquire 200 square kilometers of 3-D seismic during the initial three-year
exploration period, which commenced on November 7, 2013. 
Pursuant to the PSC for South Ghazalat in Egypt, the Company has a minimum
financial commitment of $8.0 million and a work commitment to drill two wells
and acquire 400 square kilometers of 3-D seismic during the initial three-year
exploration period, which commenced on November 7, 2013. 
Pursuant to the PSC for Block 75 in Yemen, the Contractor (Joint Interest
Partners) has a remaining minimum financial commitment of $3.0 million ($0.8
million to TransGlobe) for one exploration well in the first exploration
period, which has been extended to March 9, 2015. 
In the normal course of its operations, the Company may be subject to
litigations and claims. Although it is not possible to estimate the extent of
potential costs, if any, management believes that the ultimate resolution of
such contingencies would not have a material adverse impact on the results of
operations, financial position or liquidity of the Company. 
The Company is not aware of any material provisions or other contingent
liabilities as at March 31, 2014.  
EVENTS AFTER THE REPORTING PERIOD 
Termination of Arrangement Agreement with Caracal Energy Inc. 
On March 15, 2014, TransGlobe announced that they had entered into an
arrangement agreement to merge with Caracal Energy Inc. ("Caracal")
by way of an exchange of shares. On April 14, 2014, TransGlobe announced the
termination of the arrangement agreement after being advised by Caracal that it
had received an unsolicited cash offer to acquire all of the outstanding shares
of Caracal, and that the unsolicited offer constituted a "Superior
Proposal" under the terms of the arrangement agreement. Accordingly,
Caracal terminated the agreement and paid TransGlobe the reverse termination
fee of $9.25 million in accordance with the terms of the agreement. 
Declaration of Special and Quarterly Dividend 
On May 5, 2014, the Board of Directors declared a special dividend of $0.10 per
common share and a quarterly dividend of $0.05 per common share, both of which
will be paid in cash. The special dividend is payable to shareholders of record
on May 22, 2014, and will be paid on May 28, 2014. The first quarterly dividend
is payable to shareholders of record on June 16, 2014, and will be paid on June
30, 2014. 
CHANGES IN ACCOUNTING POLICIES 
IFRS 10 (revised) "Consolidated Financial Statements" 
In October 2012, the IASB issued amendments to IFRS 10 to define investment
entities, provide an exception to the consolidation of investment entities by a
parent company, and prescribe fair value measurement to measure such entities.
These amendments are effective for annual periods beginning on or after January
1, 2014; accordingly, the Company adopted this standard for the year ended
December 31, 2014. The adoption of this standard had no material impact on the
Condensed Consolidated Interim Financial Statements. 
IFRS 12 (revised) "Disclosure of interests in other entities" 
In October 2012, the IASB issued amendments to IFRS 12 to prescribe disclosures
about significant judgments and assumptions used to determine whether an entity
is an investment entity as well as other disclosures regarding the measurement
of such entities. These amendments are effective for annual periods beginning
on or after January 1, 2014; accordingly, the Company adopted this standard for
the year ended December 31, 2014. The adoption of this standard had no material
impact on the Condensed Consolidated Interim Financial Statements. 
IAS 32 (revised) "Financial Instruments: Presentation" 
In December 2011, the IASB issued amendments to IAS 32 to address
inconsistencies when applying the offsetting criteria. These amendments clarify
some of the criteria required to be met in order to permit the offsetting of
financial assets and financial liabilities. These amendments are effective for
annual periods beginning on or after January 1, 2014; accordingly, the Company
has adopted this standard for the year ended December 31, 2014. The adoption of
this standard had no material impact on the Condensed Consolidated Interim
Financial Statements. 
IFRIC 21 (new) "Levies" 
In May 2013, the IASB issued IFRIC 21, "Levies", which was developed
by the IFRS Interpretations Committee ("IFRIC"). IFRIC 21 clarifies
that an entity recognizes a liability for a levy when the activity that
triggers payment, as identified by the relevant legislation, occurs. The
interpretation also clarifies that no liability should be recognized before the
specified minimum threshold to trigger that levy is reached. IFRIC 21 is
effective for annual periods beginning on or after January 1, 2014;
accordingly, the Company has adopted this standard for the year ended December
31, 2014. The adoption of this standard had no material impact on the Condensed
Consolidated Interim Financial Statements. 
INTERNAL CONTROLS OVER FINANCIAL REPORTING 
TransGlobe's management designed and implemented internal controls over
financial reporting, as defined under National Instrument 52-109 Certification
of Disclosure in Issuers' Annual and Interim Filings, of the Canadian
Securities Administrators and as defined in Rule 13a-15 under the US Securities
Exchange Act of 1934. Internal controls over financial reporting is a process
designed under the supervision of the Chief Executive Officer and the Chief
Financial Officer and effected by the Board of Directors, management and other
personnel to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with IFRS, focusing in particular on controls over
information contained in the annual and interim financial statements. Due to
its inherent limitations, internal controls over financial reporting may not
prevent or detect misstatements on a timely basis. A system of internal
controls over financial reporting, no matter how well conceived or operated,
can provide only reasonable, not absolute, assurance that the objectives of the
internal controls over financial reporting are met. Also, projections of any
evaluation of the effectiveness of internal control over financial reporting to
future periods are subject to the risk that the controls may become inadequate
because of changes in conditions, or that the degree of compliance with
policies or procedures may deteriorate. 
No changes were made to the Company's internal control over financial
reporting during the period ended March 31, 2014 that have materially affected,
or are reasonably likely to materially affect, the internal controls over
financial reporting. 
/T/ 
Condensed Consolidated Interim Statements of Earnings and Comprehensive   
 Income                                                                   
(Unaudited - Expressed in thousands of U.S. Dollars, except per share     
amounts)                                                                   
Three months ended March 31  
2014            2013 
------------------------------------------------------------------------- 
------------------------------------------------------------------------- 
REVENUE                                                                   
 Oil sales, net of royalties                $      78,366   $      79,366 
 Finance revenue                                       97              46 
-------------------------------------------------------------------------  
78,463          79,412 
-------------------------------------------------------------------------  
EXPENSES                                                                  
 Production and operating                          19,578          14,532 
 General and administrative                         7,008           7,100 
 Foreign exchange (gain) loss                      (3,110)         (1,518)
 Finance costs                                      1,892           2,202 
 Exploration                                          438             107 
 Depletion, depreciation and amortization          13,165          11,180 
 Unrealized (gain) loss on financial                                      
  instruments                                       3,519          (2,990)
-------------------------------------------------------------------------  
42,490          30,613 
-------------------------------------------------------------------------  
Earnings before income taxes                       35,973          48,799  
Income tax expense (recovery)                                             
 - current                                         19,894          23,074 
 - deferred                                          (613)            847 
-------------------------------------------------------------------------  
19,281          23,921 
------------------------------------------------------------------------- 
NET EARNINGS AND COMPREHENSIVE INCOME FOR                                 
 THE PERIOD                                 $      16,692   $      24,878 
------------------------------------------------------------------------- 
-------------------------------------------------------------------------  
Earnings per share                                                        
 Basic                                      $        0.22   $        0.34 
 Diluted                                    $        0.22   $        0.26 
------------------------------------------------------------------------- 
-------------------------------------------------------------------------  
Condensed Consolidated Interim Balance Sheets                              
(Unaudited - Expressed in thousands of U.S. Dollars)                        
As at          As at 
March 31,   December 31, 
2014           2013
---------------------------------------------------------------------------
---------------------------------------------------------------------------
ASSETS                                                                     
Current                                                                    
 Cash and cash equivalents                     $     107,607  $     122,092
 Accounts receivable                                 174,037        148,284
 Prepaids and other                                   11,070          8,460
 Product inventory                                     3,240          1,525
--------------------------------------------------------------------------- 
295,954        280,361
Non-Current                                                                
 Restricted cash                                       1,547          1,546
 Deferred financing costs                              2,402          2,678
 Intangible exploration and evaluation assets         90,113         89,991
 Property and equipment                                                    
  Petroleum properties                               290,016        288,756
  Other assets                                         4,129          4,288
 Goodwill                                              8,180          8,180
--------------------------------------------------------------------------- 
$     692,341  $     675,800
---------------------------------------------------------------------------
--------------------------------------------------------------------------- 
LIABILITIES                                                                
Current                                                                    
 Accounts payable and accrued liabilities      $      37,096  $      38,392
--------------------------------------------------------------------------- 
37,096         38,392
Non-Current                                                                
 Convertible debentures                               87,765         87,539
 Deferred taxes                                       48,250         48,863
 Other long-term liabilities                             760            816
--------------------------------------------------------------------------- 
173,871        175,610
--------------------------------------------------------------------------- 
SHAREHOLDERS' EQUITY                                                       
 Share capital                                       161,531        160,561
 Contributed surplus                                  16,310         15,692
 Retained earnings                                   340,629        323,937
--------------------------------------------------------------------------- 
518,470        500,190
--------------------------------------------------------------------------- 
$     692,341  $     675,800
---------------------------------------------------------------------------
--------------------------------------------------------------------------- 
Condensed Consolidated Interim Statement of Changes in Shareholders' Equity
(Unaudited - Expressed in thousands of U.S. Dollars)                        
Three months ended March 31   
2014          2013 
-------------------------------------------------------------------------- 
--------------------------------------------------------------------------  
Share Capital                                                              
 Balance, beginning of period                 $     160,561   $    158,721 
 Stock options exercised                                716            396 
 Transfer from contributed surplus on exercise                             
  of options                                            254            142 
-------------------------------------------------------------------------- 
 Balance, end of period                       $     161,531   $    159,259 
-------------------------------------------------------------------------- 
--------------------------------------------------------------------------  
Contributed Surplus                                                        
 Balance, beginning of period                 $      15,692   $     11,714 
 Share-based compensation expense                       872          1,307 
 Transfer to share capital on exercise of                                  
  options                                              (254)          (142)
-------------------------------------------------------------------------- 
 Balance, end of period                       $      16,310   $     12,879 
-------------------------------------------------------------------------- 
--------------------------------------------------------------------------  
Retained Earnings                                                          
 Balance, beginning of period                 $     323,937   $    265,425 
 Net earnings and total comprehensive income         16,692         24,878 
-------------------------------------------------------------------------- 
 Balance, end of period                       $     340,629   $    290,303 
-------------------------------------------------------------------------- 
--------------------------------------------------------------------------  
Condensed Consolidated Interim Statements of Cash Flows                   
(Unaudited - Expressed in thousands of U.S. Dollars)                       
Three months ended March 31  
2014            2013 
------------------------------------------------------------------------- 
------------------------------------------------------------------------- 
CASH FLOWS RELATED TO THE FOLLOWING                                       
 ACTIVITIES:                                                               
OPERATING                                                                 
 Net earnings for the period                $      16,692   $      24,878 
 Adjustments for:                                                         
  Depletion, depreciation and amortization         13,165          11,180 
  Deferred lease inducement                           105             115 
  Stock-based compensation                            834           1,278 
  Finance costs                                     1,892           2,202 
  Income tax expense                               19,281          23,921 
  Unrealized (gain) loss on financial                                      
instruments                                      3,519          (2,990)
  Unrealized (gain) loss on foreign currency                               
translation                                     (3,107)         (1,505)
 Income taxes paid                                (19,894)        (23,074)
 Changes in non-cash working capital              (29,276)         15,895 
------------------------------------------------------------------------- 
Net cash generated by (used in) operating                                 
 activities                                         3,211          51,900 
-------------------------------------------------------------------------  
INVESTING                                                                 
 Additions to intangible exploration and                                  
  evaluation assets                                (1,196)         (3,476)
 Additions to petroleum properties                (13,080)        (14,677)
 Additions to other assets                            (89)            (40)
 Changes in restricted cash                            (1)             (1)
 Changes in non-cash working capital                  315            (893)
------------------------------------------------------------------------- 
Net cash generated by (used in) investing                                 
 activities                                       (14,051)        (19,087)
-------------------------------------------------------------------------  
FINANCING                                                                 
 Issue of common shares for cash                      716             396 
 Financing costs                                        -             (50)
 Interest paid                                     (3,847)         (3,373)
 Increase (decrease) in other long-term                                   
  liabilities                                        (130)           (144)
------------------------------------------------------------------------- 
Net cash generated by (used in) financing                                 
 activities                                        (3,261)         (3,171)
------------------------------------------------------------------------- 
Currency translation differences relating to                              
 cash and cash equivalents                           (384)           (436)
------------------------------------------------------------------------- 
NET INCREASE (DECREASE) IN CASH AND CASH                                  
 EQUIVALENTS                                      (14,485)         29,206 
CASH AND CASH EQUIVALENTS, BEGINNING OF                                   
 PERIOD                                           122,092          82,974 
------------------------------------------------------------------------- 
CASH AND CASH EQUIVALENTS, END OF PERIOD    $     107,607   $     112,180 
------------------------------------------------------------------------- 
-------------------------------------------------------------------------  
/T/ 
TransGlobe Energy Corporation is a Calgary-based, growth-oriented oil and gas
exploration and development company focused on the Middle East/North Africa
region with production operations in the Arab Republic of Egypt and the
Republic of Yemen. TransGlobe's common shares trade on the Toronto Stock
Exchange under the symbol TGL and on the NASDAQ Exchange under the symbol TGA.
TransGlobe's convertible debentures trade on the Toronto Stock Exchange
under the symbol TGL.DB. 
Cautionary Statement to Investors: 
This news release may include certain statements that may be deemed to be
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. Such statements relate to possible
future events. All statements other than statements of historical fact may be
forward-looking statements. Forward-looking statements are often, but not
always, identified by the use of words such as "seek",
"anticipate", "plan", "continue",
"estimate", "expect", "may", "will",
"project", "predict", "potential",
"targeting", "intend", "could",
"might", "should", "believe" and similar
expressions. These statements involve known and unknown risks, uncertainties
and other factors that may cause actual results or events to differ materially
from those anticipated in such forward-looking statements. Although
TransGlobe's forward-looking statements are based on the beliefs,
expectations, opinions and assumptions of the Company's management on the
date the statements are made, such statements are inherently uncertain and
provide no guarantee of future performance. In particular, this press release
contains forward-looking statements regarding the Company's appraisal,
development and evaluation plans and the focus of the Company's
exploration budget. In addition, information and statements relating to
"resources" are deemed to be forward-looking information and
statements, as they involve the implied assessment, based on certain estimates
and assumptions, that the resources described exist in the quantities predicted
or estimated, and that the resources described can be profitably produced in
the future. 
Actual results may differ materially from TransGlobe's expectations as
reflected in such forward-looking statements as a result of various factors,
many of which are beyond the control of the Company. These factors include, but
are not limited to, unforeseen changes in the rate of production from
TransGlobe's oil and gas properties, changes in price of crude oil and
natural gas, adverse technical factors associated with exploration,
development, production or transportation of TransGlobe's crude oil and
natural gas reserves, changes or disruptions in the political or fiscal regimes
in TransGlobe's areas of activity, changes in tax, energy or other laws or
regulations, changes in significant capital expenditures, delays or disruptions
in production due to shortages of skilled manpower, equipment or materials,
economic fluctuations, and other factors beyond the Company's control.
With respect to forward-looking statements contained in this press release,
assumptions have been made regarding, among other things: the Company's
ability to obtain qualified staff and equipment in a timely and cost-efficient
manner; the regulatory framework governing royalties, taxes and environmental
matters in the jurisdictions in which the Company conducts and will conduct its
business; future capital expenditures to be made by the Company; future sources
of funding for the Company's capital programs; geological and engineering
estimates in respect of the Company's reserves and resources; and the
geography of the areas in which the Company is conducting exploration and
development activities. TransGlobe does not assume any obligation to update
forward-looking statements if circumstances or management's beliefs,
expectations or opinions should change, other than as required by law, and
investors should not attribute undue certainty to, or place undue reliance on,
any forward-looking statements. Please consult TransGlobe's public filings
at www.sedar.com and www.sec.gov/edgar.shtml for further, more detailed
information concerning these matters, including additional risks related to
TransGlobe's business.  
-30-
FOR FURTHER INFORMATION PLEASE CONTACT: 
TransGlobe Energy Corporation
Steve Langmaid
Investor Relations
(403) 444-4787
investor.relations@trans-globe.com 
INDUSTRY:  Energy and Utilities - Oil and Gas  
SUBJECT:  ERN 
-0-
-0- May/07/2014 09:00 GMT
 
 
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