TransGlobe Energy Corporation Announces Second Quarter 2014 Financial and Operating Results

TransGlobe Energy Corporation Announces Second Quarter 2014 Financial and 
Operating Results 
NEWS RELEASE TRANSMITTED BY Marketwired 
FOR: TransGlobe Energy Corporation 
TSX SYMBOL:  TGL
NASDAQ SYMBOL:  TGA 
AUGUST 13, 2014 
TransGlobe Energy Corporation Announces Second Quarter 2014 Financial and
Operating Results 
CALGARY, ALBERTA--(Marketwired - Aug. 13, 2014) - TransGlobe Energy Corporation
("TransGlobe" or the "Company") (TSX:TGL)(NASDAQ:TGA) is
pleased to announce its financial and operating results for the three and six
months ended June 30, 2014. All dollar values are expressed in United States
dollars unless otherwise stated.  
/T/ 
--  Second quarter production averaged 16,112 Bopd (16,485 Bopd sales);  
--  Second quarter funds flow of $43.2 million (includes one-time other 
revenue of $9.25 million);  
--  Second quarter earnings of $26.2 million (includes a $2.0 million non-    cash unrealized gain on convertible debentures);  
--  Spent $17.1 million on exploration and development during the quarter;  
--  Drilled eight wells in the quarter resulting in eight oil wells (100% 
success);  
--  Commenced exploration drilling on North West Gharib concession;  
--  Collected $45.1 million in accounts receivable from the Egyptian 
Government during the quarter;  
--  Ended the quarter with $110.1 million in cash and cash equivalents; 
positive working capital of $271.5 million or $182.7 million net of debt 
(including convertible debentures);  
--  Paid $0.10/share special dividend and $0.05/share quarterly dividend 
during the second quarter.  
/T/ 
A conference call to discuss TransGlobe's 2014 second quarter results
presented in this news release will be held Wednesday, August 13, 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 August 5, 2014). The webcast may be
accessed at http://www.gowebcasting.com/5600 
FINANCIAL AND OPERATING RESULTS 
(US$000s, except per share, price, volume amounts and % change) 
/T/ 
Three Months Ended June 30      Six Months Ended June 30  
----------------------------------------------------------
Financial              2014     2013 % Change       2014      2013 % Change 
----------------------------------------------------------------------------
Oil revenue         144,208  152,646       (6)   297,348   312,561       (5)
Oil revenue, net                                                            
 of royalties        76,040   76,223        -    154,406   155,589       (1)
Production and                                                              
 operating expense   19,025   17,529        9     38,603    32,061       20 
General and                                                                 
 administrative                                                             
 expense              6,844    6,319        8     13,852    13,419        3 
Depletion,                                                                  
 depreciation and                                                           
 amortization                                                               
 expense             12,233   12,060        1     25,398    23,240        9 
Income taxes         17,861   19,416       (8)    37,142    43,337      (14)
Funds flow from                                                             
 operations(i)       43,185   32,887       31     75,672    68,892       10 
  Basic per share      0.58     0.45                1.02      0.93          
  Diluted per                                                                
share               0.57     0.40                1.00      0.84          
Net earnings         26,199   10,397      152     42,891    35,275       22 
Net earnings -                                                              
 diluted             26,199    (183)        -     42,891    21,244      102 
  Basic per share      0.35     0.14                0.57      0.48          
  Diluted per                                                                
share               0.35        -                0.57      0.26          
Capital                                                                     
 expenditures        17,490   19,295       (9)    31,855    37,488      (15)
Dividends paid       11,229        -      100     11,229         -      100 
Dividends paid per                                                          
 share                 0.15        -                0.15         -          
Working capital     271,524  286,805       (5)   271,524   286,805       (5)
Long-term debt,                                                             
 including current                                                          
 portion                  -   15,224     (100)         -    15,224     (100)
Convertible                                                                 
 debentures          88,814   81,830        9     88,814    81,830        9 
Common shares                                                               
 outstanding                                                                
  Basic (weighted-                                                           
average)          74,826   73,884        1     74,766    73,845        1 
  Diluted                                                                    
(weighted-                                                                
average)          75,657   82,345       (8)    75,702    82,094       (8)
Total assets        705,859  670,996        5    705,859   670,996        5 
----------------------------------------------------------------------------
(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.                  
Operating                                                                   
----------------------------------------------------------------------------
Average production                                                          
 volumes (Bopd)      16,112   18,417      (13)    17,083    18,209       (6)
Average sales                                                               
 volumes (Bopd)      16,485   18,539      (11)    17,204    18,225       (6)
Average price ($                                                            
 per Bbl)             96.14    90.48        6      95.49     94.75        1 
Operating expense                                                           
 ($ per Bbl)          12.68    10.39       22      12.40      9.72       28 
---------------------------------------------------------------------------- 
/T/ 
CORPORATE SUMMARY 
TransGlobe Energy Corporation's ("TransGlobe" or the
"Company") total production averaged 16,112 barrels of oil per day
("Bopd") during the quarter which is down from Q1-2014 production of
18,067 Bopd. 
In the Eastern Desert the Company began its exploration drilling program at NW
Gharib on June 25, 2014. Oil was discovered in the first NW Gharib well in the
Lower Nukhul immediately north of the Arta Lower Nukhul pool in West Gharib. In
late August a second drilling rig will mobilize to NW Gharib, and both drilling
rigs are expected to remain in NW Gharib through 2015. Year-to-date the Company
has drilled 18 wells in the Eastern Desert resulting in 15 oil wells, one water
injector and two wells which were plugged and suspended. The Company has
commenced the Eastern Desert (NW Gharib, SW Gharib and SE Gharib) seismic
acquisition program will includes 1,000+ square kilometers of 3-D seismic and
300+ kilometers of 2-D seismic. 
Eastern Desert production continues to be impacted by the faulty progressive
capacity pumps ("PCPs") at West Gharib. In early August, the first
batch of replacement pumps arrived in the field. The 20 replacement pumps are
the smaller pumps which could be flown to Egypt. The larger pumps have been
manufactured and are expected to arrive (by sea) in August/September. It is
expected that the replacement pumps will be installed and the field will be
optimized by the end of the year provided the replacement pumps perform. 
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. Drilling continues
on North Dabaa 2 (appraisal well) with results expected later in August. The
400 square kilometer 3-D seismic acquisition program for the South Ghazalat
block is expected to begin in 2015 upon completion of the Eastern Desert
program. 
Dated Brent oil prices averaged $108.95 in the second quarter of 2014. Egypt
crude is sold at a quality discount to Dated Brent and received a blended price
of $95.74 during the quarter. The Company had funds flow of $43.2 million and
ended the quarter with positive working capital of $271.5 million or $182.7
million net of debt (the convertible debentures). The Company collected $45.1
million of accounts receivable from the Egyptian government during the quarter,
resulting in an accounts receivable balance of $182.7 million as at June 30,
2014. 
The Company had net earnings in the quarter of $26.2 million, which included
the reverse termination fee received from Caracal Energy Inc. of $9.3 million
upon termination of the arrangement agreement. Net earnings also includes a
$2.0 million non-cash unrealized gain on convertible debentures, which
represents a fair value adjustment in accordance with IFRS, but does not
represent a cash gain or a change in the future cash outlay required to repay
the convertible debentures. 
TransGlobe paid a total of $11.2 million ($0.15/share) to its common
shareholders during the second quarter of 2014 in the form of dividends which
included a one-time special dividend of $7.5 million ($0.10/share) from the
Caracal reverse termination fee. The Company intends to continue paying a
quarterly dividend, and a third quarter dividend of $0.05/share has been
approved by TransGlobe's board of directors. The third quarter dividend
will be paid on September 30, 2014.  
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.  
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. 
OPERATIONS UPDATE 
ARAB REPUBLIC OF EGYPT  
West Gharib, Arab Republic of Egypt (100% working interest, operated) 
Operations and Exploration  
The Company drilled two wells during the second quarter resulting in an oil
well at Hana and an oil well at Arta (a side track of a dry hole which was
plugged back and suspended in Q1). The Hana well is producing 100 Bopd from the
main Markha pool and the Arta side track is producing 180 Bopd from the Upper
Nukhul. 
Subsequent to quarter-end, one additional well was drilled at Hana targeting
the Markha as a water injector and a deeper exploratory test (TD of 8,888 feet)
to evaluate the Thebes formation. The Thebes is a potential resource type
project which is characterized as a thick (400+ feet) regional carbonate with
low porosity which has produced small amounts of oil on test (reported short
test of up to 200 Bopd) from exploration wells drilled in the area during the
1960's and 70's. The well encountered approximately 320 feet of low
porosity Thebes and was cased as a potential Thebes oil well and future water
injector for the main Hana Markha pool. A portion of the Thebes was cored (87
feet) and is being analyzed prior to designing a completion test. It is
expected that the Thebes will be completed and tested in late 2014. If results
from the Hana well are encouraging, additional test wells will be required to
properly evaluate the potential resource recoveries and associated economics
prior to a Thebes resource development. Based on internal mapping over the Hana
development lease exclusively, it is estimated that the Thebes formation could
contain 90 million barrels of Petroleum initially in Place (PIIP) on an
un-risked deterministic basis. 
Year-to-date the Company has drilled eight wells resulting in seven oil wells
and one dry hole (subsequently side tracked) at West Gharib.  
The rig is currently drilling a development well at Hana West prior to moving
to the new North West Gharib concession for the balance of 2014.  
Production  
Production from West Gharib averaged 9,987 Bopd to TransGlobe during the second
quarter, a 10% (1,113 Bopd) decrease from the previous quarter. 
Production to TransGlobe averaged 9,422 Bopd in July.  
Production at West Gharib continues to be adversely impacted by a combination
of premature failures of new progressive cavity pumps ("PCPs") and
increased water cuts associated with natural declines. The manufacturer of the
failed PCPs has completed a detailed review of the failed pumps and the
manufacturing process for the pumps. Subsequent to the review, the manufacturer
has modified its processes and advised the Company that they will provide
replacements at no cost to the Company for the forty pumps which were supplied
during the past year. The new pumps are manufactured, with the first batch of
20 pumps arriving in country in late July and in the field in early August
following testing by the manufacturer in Egypt. The remaining 20 pumps (larger
pumps) are scheduled to arrive by sea in Egypt in August/September. In
addition, the Company placed a special order for nine replacement pumps from
the Company's previous pump supplier which were manufactured and are
scheduled to arrive in Egypt in late August. It is expected that the
replacement pumps will be installed and field optimization will be completed by
the end of the year provided the replacement pumps perform. The installation of
the new pumps should allow the Company to restore 800 to 1,000 Bopd of shut-in
and curtailed production. 
/T/ 
Quarterly West Gharib Production                                            
 (Bopd)                                             2014                2013
---------------------------------------------------------------------------- 
Q-2       Q-1       Q-4       Q-3
----------------------------------------------------------------------------
Gross production rate                    9,987    11,100    11,983    12,274
TransGlobe working interest              9,987    11,100    11,983    12,274
TransGlobe net (after royalties)         5,950     6,350     6,600     6,865
TransGlobe net (after royalties and                                         
 tax) (i)                                4,405     4,562     4,592     4,812
---------------------------------------------------------------------------- 
(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 wells in the second quarter resulting in two oil
wells (H-field and K-field) and one H-field water injector. The H-field oil
well encountered three Yusr zones (A, B & C) and was initially completed in
the lower most Yusr C zone which is awaiting additional perforations due to
poor inflow. The K-field well was completed in the main Asl A zone and placed
on production at an initial rate of 480 Bopd in July. 
Subsequent to quarter end, the Company drilled two oil wells (H-field and
K-field) which are scheduled for completion during the third quarter. 
Year to date the Company has drilled eight wells resulting in seven oil wells
and one water injection well at West Bakr. The drilling rig is currently shut
down for scheduled maintenance prior to drilling in M-field and is expected to
remain working in West Bakr throughout 2014. 
Production 
Production from West Bakr averaged 5,182 Bopd to TransGlobe during the second
quarter, a 10% (575 Bopd) decrease from the previous quarter. Production
decreases are primarily attributed to an increase in well servicing and lower
production from multi zone new wells. The wells were completed in the deeper
formations first (which have lower productivity due to thinner zones and
structural proximity to water). 
Production averaged 4,946 Bopd in July. 
During the second quarter the Company contracted an additional workover rig to
conduct an initial 10 well remedial program to re-enter suspended oil wells,
evaluate un-swept oil potential, and recomplete/equip wells for production. The
first well (H-field) was recompleted and placed on production in late July at
an initial rate of 450 Bopd. Concurrently the Company has commenced a program
to install larger pump jacks on higher volume producers to optimize well
performance. The first three larger pump jacks were received and installed in
late June with an additional three pump jacks installed in July. The initial
three wells are producing an additional 180 Bopd (60 Bopd/well) with further
optimization planned for August. The remaining fourteen large volume pump jacks
are expected to be installed over the balance of 2014. 
/T/ 
Quarterly West Bakr Production                                              
 (Bopd)                                                                     
---------------------------------------------------------------------------- 
Q-2       Q-1       Q-4       Q-3
----------------------------------------------------------------------------
Gross production rate                    5,182     5,757     5,521     5,393
TransGlobe working interest              5,182     5,757     5,521     5,393
TransGlobe net (after royalties)         1,843     2,024     2,026     1,488
TransGlobe net (after royalties and                                         
 tax) (i)                                1,471     1,611     1,631     1,102
---------------------------------------------------------------------------- 
(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 
In June, the Company mobilized a drilling rig to the first exploration well on
the North West Gharib ("NWG") concession (NWG 1) which began drilling
on June 25. 
Subsequent to the quarter two wells were drilled resulting in an oil well at
NWG 1 and a suspended well at NWG 2. Oil was discovered at NWG 1 in the Lower
Nukhul immediately north of the West Gharib main Arta Lower Nukhul pool.
Approximately 33 feet of net oil pay was identified on well logs and the well
was cased for completion as a future oil producer. NWG 2 was unable to reach
the target formation due to a combination of swelling shales and lost
circulation. The well has been plugged back to the base of surface casing and
suspended as a potential future side track candidate. The drilling rig is
currently drilling a Nukhul prospect at NWG 3 located approximately two
kilometers north east of NWG 2. 
In August the Company will move a second drilling rig (currently drilling at
West Gharib) to NWG 10, which is targeting a deeper Markha/Rudeis exploration
target on the southeast corner of the concession. 
Both drilling rigs are currently scheduled to remain in NWG through 2015. A map
showing the approximate locations of NWG 1 through 18 is available on the
Company website at http://www.trans-globe.com/operations/egypt/nw-gharib.html 
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. The following table summarizes the prospects that
will be tested in 2014. 
/T/ 
Prospective             
Resources (i)             
(millions of  Chance of 
Wells            Description                            barrels)    Success 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
NWG 1, 2, 3, 4,  Nukhul Pools proximal to Arta /                            
 5, 7             East Arta                                  6.9   40 to 60%
NWG 6            Nukhul structure                           11.8         16%
NWG 8            Nukhul structure                            1.9         24%
NWG 9            Nukhul structure                            1.8         12%
NWG 10           Markhu / Rudeis structure                  33.0         15%
NWG 11           Nukhul structure                            3.0         35%
NWG 12 to 18     Appraisal wells to NWG 1 to 5, 7              -            
----------------------------------------------------------------------------
Planned 2014                                                                
 drilling                                                                   
 program                                                    58.4            
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
(i)  Internally estimated on an un-risked deterministic basis.               
/T/ 
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 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 and commenced a large (1,000+ square kilometers of 3-D
and 300+ kilometers of 2-D) seismic acquisition program for the Eastern Desert
to be followed with an additional 400+ square kilometers of 3-D seismic
acquisition in the Western Desert (South Ghazalat concession). It is expected
the total seismic acquisition program will be completed by the second quarter
of 2015 at an estimated cost of $36 million. 
East Ghazalat Block, Arab Republic of Egypt (50% working interest) 
Operations and Exploration  
The Company participated in one oil well during the second quarter.
Year-to-date the Company has participated in three wells resulting in two Safwa
oil wells and one dry hole. Drilling commenced on the 14,500 foot North Dabaa 2
appraisal well with results expected in late August. The North Dabaa 1
discovery well tested natural gas/condensate from the Khatatba formation (press
release November 13, 2013). Following the North Dabaa 2 appraisal well, the rig
is scheduled to move to the Safwa development lease to drill the first
horizontal development well targeting the Upper Bahariya in the Safwa field. 
Production 
Production from East Ghazalat averaged 1,573 Bopd (786 Bopd to TransGlobe)
during the second quarter, a 352 Bopd (81%) increase to TransGlobe 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 1,374 Bopd (687 Bopd to TransGlobe) in
July. 
/T/ 
Quarterly East Ghazalat Production                                          
 (Bopd)                                             2014                2013
---------------------------------------------------------------------------- 
Q-2       Q-1       Q-4       Q-3
----------------------------------------------------------------------------
Gross production rate                    1,573       868       670       421
TransGlobe working interest                786       434       335       211
TransGlobe net (after royalties)           395       218       168       106
TransGlobe net (after royalties and                                         
 tax) (i)                                  315       174       134        84
---------------------------------------------------------------------------- 
(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) has been 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 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 to obtain access to the remaining
concession area. 
REPUBLIC OF YEMEN 
Block 32, Republic of Yemen (13.81% working interest) 
Operations and Exploration  
No wells were drilled during the second quarter.  
Production  
Sales production from Block 32 averaged 841 Bopd (116 Bopd to TransGlobe)
during the second 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 second quarter averaged 1,133 Bopd (156
Bopd to TransGlobe) which is approximately 17% higher than the previous
quarter. Production in 2014 continues to be partially impacted due to pipeline
and general service/supply interruptions.  
Production from the block averaged 1,594 Bopd (220 Bopd to TransGlobe) during
July. 
/T/ 
Quarterly Block 32 Production and                                           
 Sales (Bopd)                                       2014                2013
---------------------------------------------------------------------------- 
Q-2       Q-1       Q-4       Q-3
----------------------------------------------------------------------------
Gross field production rate              1,133       968     1,995     2,310
Gross sales production rate                841       938     2,718     1,673
TransGlobe working interest                116       130       375       231
TransGlobe net (after royalties)            91       103       283       169
TransGlobe net (after royalties and                                         
 tax) (i)                                   83        94       256       150
---------------------------------------------------------------------------- 
(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. 
Block S-1, Republic of Yemen (25% working interest)  
Operations and Exploration  
No wells were drilled during the second quarter.  
Production  
Sales production from Block S-1 averaged 1,652 Bopd (413 Bopd to TransGlobe)
during the second 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 was zero during the second quarter due to an attack on the
sales pipeline on February 24, 2014. The pipeline attack related primarily to
unresolved contractor issues with local tribes which were under negotiation.
The operator made progress on a number of labor issues during the second
quarter and repaired the pipeline in early July. The pipeline was attacked a
few days later and remains shut in pending resolution of additional labor
issues. 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-2       Q-1       Q-4       Q-3
----------------------------------------------------------------------------
Gross field production rate                  -     2,568     1,624         -
Gross sales production rate              1,652     2,044         -         -
TransGlobe working interest                413       511         -         -
TransGlobe net (after royalties)           288       357         -         -
TransGlobe net (after royalties and                                         
 tax) (i)                                  257       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 August 11, 2014, TransGlobe's Board of Directors approved and declared
a quarterly dividend of $0.05 per share, payable in cash as follows: 
/T/ 
Per share
Ex-dividend date              Record date         Payment date        amount
----------------------------------------------------------------------------
September 11, 2014     September 15, 2014   September 30, 2014         $0.05
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
/T/ 
The initiation of a quarterly dividend payment program in the second quarter of
2014 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
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 quarterly dividend declared on August 11, 2014 has been designated as an
eligible dividend 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 Outlook  
Production guidance for 2014 is under review due to prolonged pump issues at
West Gharib and continued tribal issues in Yemen.  
Production sales to June 30, 2014 averaged 17,204 Bopd with July production
averaging 15,275 Bopd.  
It is expected that third quarter production will be in the 15,000 Bopd range.
Due to the timing uncertainties to restore production at West Gharib and Yemen,
it is difficult to predict fourth quarter production increases at this time.
Fourth quarter production guidance will be provided when the timing of
replacement pump installation/optimization and performance has been
established. 
Should production remain in the 15,000 Bopd range for the balance of the year,
total production for 2014 would average approximately 16,000 Bopd for 2014. 
With production at 15,000 Bopd for the balance of the year (16,000 Bopd average
for 2014), funds flow from operations would be approximately $126.5 million
($117 million excluding the $9.3 termination fee from Caracal) assuming an
average Dated Brent oil price of $100/Bbl for the balance of the year. The
funds flow sensitivity to a $10/Bbl change in Brent for the balance of the year
is approximately $6 million. 
/T/ 
2014 Capital Budget                       Six Months Ended              2014
($ millions)                                 June 30, 2014    Capital Budget
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Egypt                                                 30.4              93.6
Yemen                                                  1.0               6.4
Corporate                                              0.4                 -
----------------------------------------------------------------------------
Total                                                 31.8             100.0
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
/T/ 
As at June 30, 2014 the Company had spent approximately 32% of the 2014 budget.
Capital spending is forecast to increase in the second half of 2014 with the
addition of a third drilling rig (late June) and a large seismic acquisition
program (commencing in August) in the Eastern Desert. 
Although the Company's capital budget remains at $100.0 million, it is
expected that $85.0 - $90.0 million will be invested in Egypt during 2014, with
minimal investment in Yemen due to tribal issues. 
The 2014 capital program is split 68:32 between development and exploration,
respectively. The Company plans to participate in up to 51 wells in 2014. The
Company intends to fund it entire 2014 capital budget through the use of
working capital and cash generated by operating activities. 
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 necessary to fund future growth through capital investment.
Funds flow from operations may not be comparable to similar measures used by
other companies. 
/T/ 
Reconciliation of Funds Flow from Operations                                 
Three Months Ended    Six Months Ended 
June 30             June 30
----------------------------------------------------------------------------
($000s)                                   2014      2013      2014      2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash flow from operating activities     33,467    16,347    36,678    68,247
Changes in non-cash working capital      9,718    16,540    38,994       645
----------------------------------------------------------------------------
Funds flow from operations(i)           43,185    32,887    75,672    68,892
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
(i)  Funds flow from operations does not include interest or financing       
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
----------------------------------------------------------------------------
($000s,                                                                     
 except per                                                                 
 share,                                                                     
price and                                                                   
 volume                                                                     
 amounts)        Q-2     Q-1     Q-4     Q-3     Q-2     Q-1     Q-4     Q-3
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Average                                                                     
 production                                                                 
 volumes                                                                    
 (Bopd)       16,112  18,067  18,519  18,197  18,417  18,001  17,875  18,143
Average sales                                                               
 volumes                                                                    
 (Bopd)       16,485  17,932  18,213  18,109  18,539  17,909  19,148  17,124
Average price                                                               
 ($/Bbl)       96.14   94.89   96.10   97.18   90.48   99.21   98.70   96.88
Oil sales    144,208 153,140 161,035 161,900 152,646 159,915 173,864 152,624
Oil sales,                                                                  
 net of                                                                     
 royalties    76,040  78,366  81,196  78,531  76,223  79,366  92,281  74,540
Cash flow                                                                   
 from                                                                       
 operating                                                                  
 activities   33,467   3,211 109,226  22,035  16,347  51,900  65,250   2,368
Funds flow                                                                  
 from                                                                       
 operations                                                                 
 (i)          43,185  32,487  36,743  33,483  32,887  36,005  46,839  35,397
Funds flow                                                                  
 from                                                                       
 operations                                                                 
 per share                                                                  
  - Basic       0.58    0.44    0.49    0.45    0.45    0.49    0.63    0.49
  - Diluted     0.57    0.43    0.49    0.44    0.40    0.44    0.57    0.47
Net earnings  26,199  16,692   6,893  16,344  10,397  24,878  34,836  11,774
Net earnings                                                                
 - diluted    26,199  16,692   6,893  16,344    (183) 21,427  32,156  11,774
Net earnings                                                                
 per share                                                                  
  - Basic       0.35    0.22    0.09    0.22    0.14    0.34    0.48    0.16
  - Diluted     0.35    0.22    0.09    0.22       -    0.26    0.39    0.16
Dividends                                                                   
 paid         11,229       -       -       -       -       -       -       -
Dividends                                                                   
 paid per                                                                   
 share          0.15       -       -       -       -       -       -       - 
Total assets 705,859 692,341 675,800 723,708 670,996 672,675 653,425 635,529
Cash and cash                                                               
 equivalents 110,057 107,607 122,092 128,162 101,435 112,180  82,974  45,732
Convertible                                                                 
 debentures   88,814  87,765  87,539  85,300  81,830  93,842  98,742 102,920
Total long-                                                                 
 term debt,                                                                 
 including                                                                  
 current                                                                    
 portion           -       -       -  39,040  15,224  17,097  16,885  31,878
Debt-to-funds                                                               
 flow ratio                                                                 
 (ii)            0.6     0.6     0.6     0.8     0.6     0.7     0.8     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 second quarter of 2014, TransGlobe:  
/T/ 
--  Maintained a strong financial position, reporting a debt-to-funds flow 
ratio of 0.6 at June 30, 2014;  
--  Reported net earnings of $26.2 million, which includes the $9.3 million 
reverse termination fee received from Caracal Energy Inc. ("Caracal") 
upon termination of the arrangement agreement between TransGlobe and 
Caracal and $2.0 million in an unrealized gain on the convertible 
debenture;  
--  Experienced a decrease in oil sales compared to Q1-2014 and Q2-2013 
primarily as a result of decreased sales volumes, which was partially 
offset by increased oil prices;  
--  Achieved funds flow from operations of $43.2 million, which represents a 
significant increase from both the prior quarter and Q2-2013. Funds flow 
from operations is elevated in the current quarter due to the receipt of 
the reverse termination fee from Caracal in the amount of $9.3 million;  
--  Experienced an increase in cash flow from operating activities as 
compared to Q1-2014, which is mostly due to the reverse termination fee 
received from Caracal along with higher collections on accounts 
receivable balances;  
--  Spent $17.5 million on capital programs, which was funded entirely with 
funds flow from operations and cash on hand; and  
--  Paid a special dividend of $0.10/share and a quarterly dividend of 
$0.05/share during the second quarter of 2014.  
/T/ 
2014 TO 2013 NET EARNINGS VARIANCES 
/T/ 
$ Per Share                
$000s       Diluted    % Variance 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Q2-2013 net earnings(i)                  10,397          0.14               
----------------------------------------------------------------------------
Cash items                                                                  
Volume variance                         (17,843)        (0.23)         (171)
Price variance                            9,405          0.12            90 
Royalties                                 8,255          0.11            79 
Expenses:                                                                   
  Production and operating               (1,496)        (0.02)          (14)
  Cash general and administrative            85             -             1 
  Exploration                              (156)            -            (2)
  Current income taxes                    2,939          0.04            28 
  Realized foreign exchange gain                                             
(loss)                                   (43)            -             - 
  Interest on long-term debt                350             -             3 
Other income                              9,152          0.12            88 
----------------------------------------------------------------------------
Total cash items variance                10,648          0.14           102 
----------------------------------------------------------------------------
Non-cash items                                                              
Unrealized foreign exchange gain         (5,288)        (0.07)          (51)
Depletion and depreciation                 (173)            -            (2)
Unrealized gain (loss) on                                                   
 financial instruments                   (7,105)        (0.09)          (68)
Stock-based compensation                 19,710          0.26           190 
Deferred income taxes                      (610)        (0.01)           (6)
Deferred lease inducement                (1,384)        (0.02)          (13)
Amortization of deferred financing                                          
 costs                                        4             -             - 
----------------------------------------------------------------------------
Total non-cash items variance             5,154          0.07            50 
----------------------------------------------------------------------------
Q2-2014 net earnings                     26,199          0.35           152 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
(i)  Diluted earnings per share for Q2-2013 is presented prior to the        
dilutive effect of the convertible debentures in that period            
/T/ 
Net earnings increased to $26.2 million in Q2-2014 compared to $10.4 million in
Q2-2013. The earnings impact of decreased volumes was almost completely offset
by increased prices and reduced royalty costs. The largest earnings variance
item from Q2-2013 to Q2-2014 relates to the impairment loss recorded on the
Company's South Mariut assets in Q2-2013 in the amount of $19.7 million,
for which there was no corresponding impairment loss recorded in Q2-2014. The
reverse termination fee received from Caracal in the amount of $9.3 million
(included in other income) also created a positive earnings variance from
Q2-2013 to Q2-2014. Partially offsetting these positive earnings variances was
a decrease in the mark-to-market gain on convertible debentures along with a
foreign exchange loss of $3.1 million in Q2-2014 compared to a gain of $2.2
million in Q2-2013. 
BUSINESS ENVIRONMENT 
The Company's financial results are influenced by fluctuations in
commodity prices, including price differentials. The following table shows
select market benchmark prices and foreign exchange rates: 
/T/ 
2014                    2013
---------------------------------------------------------------------------- 
Q-2     Q-1     Q-4     Q-3     Q-2
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Dated Brent average oil price                                               
 ($/Bbl)                              108.95  108.18  109.27  110.27  102.44
U.S./Canadian Dollar average                                                
 exchange rate                         1.091   1.103   1.050   1.039   1.023
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
/T/ 
The price of Dated Brent oil averaged 1% higher in Q2-2014 compared with
Q1-2014. 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 six months of 2014, the
Company collected $74.5 million in accounts receivable from the Egyptian
Government. 
The Egyptian government recently implemented higher gasoline, diesel and
natural gas prices, effectively reducing the subsidies carried by the
government. These price increases are expected to have a material impact on
Egypt's current budget deficit and are also expected to enable the
Egyptian government to make more timely payments for its purchases of oil and
gas from international oil companies. Given the political sensitivity of the
reduction of fuel subsidies, it is extremely encouraging to see the Egyptian
Government take decisive action in this regard. The fact that the newly formed
government is willing to take actions that may not be popular from a political
perspective to improve the Egyptian economy is viewed as very positive by
TransGlobe. 
In an effort to expand the Company's exploration opportunities in Egypt,
TransGlobe submitted a bid on a single exploration block on July 3, 2014 in the
EGPC bid round. It is expected that the blocks will be awarded to successful
bidders during this year. 
OPERATING RESULTS AND NETBACK  
Daily Volumes, Working Interest before Royalties and Other (Bopd)  
Production Volumes 
/T/ 
Three Months Ended June 30  Six Months Ended June 30
---------------------------------------------------------------------------- 
2014         2013         2014         2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Egypt                          15,956       18,111       16,619       17,890
Yemen                             156          306          464          319
----------------------------------------------------------------------------
Total Company                  16,112       18,417       17,083       18,209
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
/T/ 
Sales Volumes 
/T/ 
Three Months Ended June 30  Six Months Ended June 30
---------------------------------------------------------------------------- 
2014         2013         2014         2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Egypt                          15,956       18,111       16,619       17,890
Yemen                             529          428          585          335
----------------------------------------------------------------------------
Total Company                  16,485       18,539       17,204       18,225
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
/T/ 
Netback 
/T/ 
Consolidated                                                                 
Six Months Ended June 30
---------------------------------------------------------------------------- 
2014                2013
----------------------------------------------------------------------------
(000s, except per Bbl amounts)               $     $/Bbl         $     $/Bbl
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Oil sales                              297,348     95.49   312,561     94.75
Royalties                              142,942     45.90   156,972     47.59
Current taxes                           37,997     12.20    44,116     13.37
Production and operating expenses       38,603     12.40    32,061      9.72
----------------------------------------------------------------------------
Netback                                 77,806     24.99    79,412     24.07
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Consolidated                                                                 
Three Months Ended June 30
---------------------------------------------------------------------------- 
2014                2013
----------------------------------------------------------------------------
(000s, except per Bbl amounts)               $     $/Bbl         $     $/Bbl
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Oil sales                              144,209     96.14   152,646     90.48
Royalties                               68,169     45.44    76,423     45.30
Current taxes                           18,103     12.07    21,042     12.47
Production and operating expenses       19,025     12.68    17,529     10.39
----------------------------------------------------------------------------
Netback                                 38,912     25.95    37,652     22.32
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Egypt                                                                        
Six Months Ended June 30
---------------------------------------------------------------------------- 
2014                2013
----------------------------------------------------------------------------
(000s, except per Bbl amounts)               $     $/Bbl         $     $/Bbl
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Oil sales                              285,963     95.07   306,034     94.51
Royalties                              139,721     46.45   154,496     47.71
Current taxes                           37,153     12.35    43,326     13.38
Production and operating expenses       32,292     10.74    28,081      8.67
----------------------------------------------------------------------------
Netback                                 76,797     25.53    80,131     24.75
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Egypt                                                                        
Three Months Ended June 30
---------------------------------------------------------------------------- 
2014                2013
----------------------------------------------------------------------------
(000s, except per Bbl amounts)               $     $/Bbl         $     $/Bbl
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Oil sales                              139,020     95.74   148,545     90.13
Royalties                               66,699     45.94    74,852     45.42
Current taxes                           17,718     12.20    20,536     12.46
Production and operating expenses       15,985     11.01    15,350      9.31
----------------------------------------------------------------------------
Netback                                 38,618     26.59    37,807     22.94
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
/T/ 
The netback per Bbl in Egypt increased 16% and 3%, respectively, in the three
and six months ended June 30, 2014 compared with the same periods of 2013. The
main driver of the increased netbacks was the effect of a 6% and 1% increase in
realized oil prices, respectively, in the three and six months ended June 30,
2014 compared with the same periods of 2013. Production and operating expenses
increased by $1.70/Bbl and $2.07/Bbl, respectively, which was principally a
result of increased well servicing costs relating to faulty progressive cavity
pumps at West Gharib, along with increased costs at West Bakr associated with
replacing pump jacks that are at the end of their life cycles. The increase in
production and operating expenses resulted in a decrease in the amount of
royalties and current taxes as a percentage of revenue per Bbl for the three
and six months ended June 30, 2014 as compared to the same periods in 2013.
Total government take (royalties and current taxes) as a percentage of revenue
was 61% and 62%, respectively, for the three and six months ended June 30, 2014
compared with 64% and 65%, respectively, for the same periods of 2013. 
The average selling price during the three months ended June 30, 2014 was
$95.74/Bbl, which represents a gravity/quality adjustment of approximately
$13.21/Bbl to the average Dated Brent oil price for the period of $108.95/Bbl.  
/T/ 
Yemen                                                                        
Six Months Ended June 30
---------------------------------------------------------------------------- 
2014                2013
----------------------------------------------------------------------------
(000s, except per Bbl amounts)               $     $/Bbl         $     $/Bbl
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Oil sales                               11,385    107.52    6,527    107.64 
Royalties                                3,221     30.42    2,476     40.83 
Current taxes                              844      7.97      790     13.03 
Production and operating expenses        6,311     59.60    3,980     65.64 
----------------------------------------------------------------------------
Netback                                  1,009      9.53     (719)   (11.86)
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Yemen                                                                        
Three Months Ended June 30
---------------------------------------------------------------------------- 
2014                2013
----------------------------------------------------------------------------
(000s, except per Bbl amounts)               $     $/Bbl         $     $/Bbl
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Oil sales                                5,189    107.79    4,101    105.29 
Royalties                                1,470     30.54    1,571     40.34 
Current taxes                              385      8.00      506     12.99 
Production and operating expenses        3,040     63.15    2,179     55.95 
----------------------------------------------------------------------------
Netback                                    294      6.10     (155)    (3.99)
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
/T/ 
In Yemen, the Company experienced netbacks per Bbl of $6.10 and $9.53,
respectively, in the three and six months ended June 30, 2014. Production and
operating expenses remain at elevated levels on a per Bbl basis in 2014 as a
result of production shut-ins on Block S-1 and Block 32 during the first half
of the year. 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% in the three
and six months ended June 30, 2014, compared with 51% and 50%, respectively, in
the same periods of 2013. The reduced government take is the result of the
recovery of cost pools that were built up during periods when production was
shut-in.  
GENERAL AND ADMINISTRATIVE EXPENSES ("G&A") 
/T/ 
Six Months Ended June 30 
---------------------------------------------------------------------------- 
2014               2013 
----------------------------------------------------------------------------
(000s, except Bbl amounts)                   $     $/Bbl         $    $/Bbl 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
G&A (gross)                            14,708      4.72    12,706      3.85 
Stock-based compensation                2,728      0.88     2,562      0.78 
Capitalized G&A and overhead                                                
 recoveries                            (3,584)    (1.15)   (1,849)    (0.56)
----------------------------------------------------------------------------
G&A (net)                              13,852      4.45    13,419      4.07 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Three Months Ended June 30 
---------------------------------------------------------------------------- 
2014               2013 
----------------------------------------------------------------------------
(000s, except Bbl amounts)                   $     $/Bbl         $    $/Bbl 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
G&A (gross)                             6,898      4.60     5,799      3.44 
Stock-based compensation                1,894      1.26     1,284      0.76 
Capitalized G&A and overhead                                                
 recoveries                            (1,948)    (1.30)     (764)    (0.45)
----------------------------------------------------------------------------
G&A (net)                               6,844      4.56     6,319      3.75 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
/T/ 
G&A expenses (net) increased 22% and 9%, respectively, in the three and six
months ended June 30, 2014 compared with the same periods in 2013. G&A
(gross) was elevated in the three and six months ended June 30, 2014 mostly due
to an increase in banking fees associated with the letters of credit ($60.2
million) required to backstop the Company's financial commitments under
the PSCs that were ratified in late 2013 in Egypt. These banking fees were
capitalized in their respective concessions, which is the reason for the
increased capitalized G&A. Stock-based compensation has increased in both
the three and six months periods ended June 30, 2014 compared to the same
periods in 2013 mostly as a result of the issuance of restricted share units,
performance share units and deferred share units during Q2-2014. 
FINANCE COSTS  
Finance costs for the three and six months ended June 30, 2014 were $1.9
million and $3.8 million, respectively (2013 - $2.2 million and $4.4 million,
respectively). Interest expense on the convertible debentures for the three and
six-month periods ended June 30, 2014 were $1.3 million and $2.6 million,
respectively (2013 - $1.4 million and $2.9 million, respectively). 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 thus far in 2014 as
compared to 2013. 
/T/ 
---------------------------------------------------------------------------- 
Three Months Ended June 30  Six Months Ended June 30
----------------------------------------------------------------------------
(000s)                           2014         2013         2014         2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Interest expense                1,579        1,929        3,195        3,869
Amortization of deferred                                                    
 financing costs                  279          283          555          545
----------------------------------------------------------------------------
Finance costs                   1,858        2,212        3,750        4,414
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
/T/ 
The Company had no long-term debt outstanding under the Borrowing Base Facility
as at June 30, 2014 (June 30, 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. The unutilized portion of the facility bears interest at
50% of the applicable margin. 
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$14.89 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, provided that the dividend payment causes the
conversion price to change by 1% or more. 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/ 
Six Months Ended June 30
---------------------------------------------------------------------------- 
2014                2013
----------------------------------------------------------------------------
(000s, except per Bbl amounts)               $     $/Bbl         $     $/Bbl
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Egypt                                   24,030      7.99    22,430      6.93
Yemen                                    1,150     10.86       634     10.46
Corporate                                  218         -       176         -
---------------------------------------------------------------------------- 
25,398      8.16    23,240      7.05
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Three Months Ended June 30
---------------------------------------------------------------------------- 
2014                2013
----------------------------------------------------------------------------
(000s, except per Bbl amounts)               $     $/Bbl         $     $/Bbl
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Egypt                                   11,660      8.03    11,540      7.00
Yemen                                      448      9.31       432     11.09
Corporate                                  125         -        88         -
---------------------------------------------------------------------------- 
12,233      8.15    12,060      7.15
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
/T/ 
In Egypt, DD&A increased 15% on a per Bbl basis for the three and six month
periods ended June 30, 2014 compared to the same periods in 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 decreased 16% on a per Bbl basis for the three months ended
June 30, 2014 and remained relatively consistent on a per Bbl basis for the six
months ended June 30, 2014 compared to the same periods in 2013. The decrease
in the three month period ended June 30, 2014 is mostly due to the fact that
Block S-1 recorded sales during the second quarter of 2014 and did not during
the second quarter of 2013. Block S-1 carries a lower depletion rate on a per
Bbl basis than Block 32 and therefore caused a decrease in the consolidated
Yemen depletion rate for the three months ended June 30, 2014. 
CAPITAL EXPENDITURES 
/T/ 
Six Months Ended June 30
----------------------------------------------------------------------------
($000s)                                               2014              2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Egypt                                               30,445            36,093
Yemen                                                  984             1,377
Corporate                                              426                18
----------------------------------------------------------------------------
Total                                               31,855            37,488
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
/T/ 
In Egypt, total capital expenditures in the first six months of 2014 were $30.4
million (2013 - $36.1 million). During the first six months of the year, the
Company drilled seven wells at West Gharib (four oil wells and one dry hole at
Arta, one oil well at East Arta, and one oil well at Hana). The Company also
drilled six oil wells at West Bakr and two oil wells and one dry hole at East
Ghazalat. 
OUTSTANDING SHARE DATA 
As at June 30, 2014, the Company had 74,931,494 common shares issued and
outstanding and 6,467,467 stock options issued and outstanding, which are
exercisable in accordance with their terms into a maximum of 6,467,467 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 June 30, 2014 (December 31, 2013 - 0.6). This is within the
Company's internal guidance of no more than 2.0 times. 
The table below illustrates TransGlobe's sources and uses of cash during
the periods ended June 30, 2014 and 2013: 
/T/ 
Sources and Uses of Cash                                                     
Three Months Ended June 30 
----------------------------------------------------------------------------
($000s)                                                  2014          2013 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash sourced                                                                
  Funds flow from operations(i)                        75,672        68,892 
  Exercise of options                                   1,606           500 
---------------------------------------------------------------------------- 
77,278        69,392 
Cash used                                                                   
  Capital expenditures                                 31,855        37,488 
  Dividends paid                                       11,229             - 
  Deferred financing costs                                  -         2,205 
  Transfer to restricted cash                               1             1 
  Finance costs                                         4,056         3,558 
  Other                                                   639         1,517 
---------------------------------------------------------------------------- 
47,780        44,769 
---------------------------------------------------------------------------- 
29,498        24,623 
Changes in non-cash working capital                   (41,533)       (6,162)
----------------------------------------------------------------------------
Increase in cash and cash equivalents                 (12,035)       18,461 
Cash and cash equivalents - beginning of period       122,092        82,974 
----------------------------------------------------------------------------
Cash and cash equivalents - end of period             110,057       101,435 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
(i)  Funds flow from operations is a measure that represents cash generated  
from operating activities before changes in non-cash working capital.   
/T/ 
Funding for the Company's capital expenditures was provided by cash
generated by operating activities. 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 June 30, 2014, the Company had working capital of $271.5
million (December 31, 2013 - $242.0 million). The increase to working capital
in Q2-2014 is principally the result of an increase in accounts receivable
combined with a decrease in accounts payable, 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 continued 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 determine solutions to 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 June 30, 2014, TransGlobe had $100.0 million available under a Borrowing
Base Facility of which no amounts were drawn, however, the Company was
utilizing $60.2 million of the facility 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 in                Less                      More 
Financial   Contractual     than    1 - 3   4 - 5     than
($000s)           Statements   Cash Flows   1 year    years   years  5 years
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Accounts payable                                                            
 and accrued     Yes -                                                      
 liabilities      Liability        32,753   32,753        -       -        -
Convertible      Yes -                                                      
 debentures       Liability        88,814        -   88,814       -        -
Office and                                                                  
 equipment and                                                              
 rig leases      No                19,638   13,870    2,571   1,964    1,233
Minimum work                                                                
 commitments (3) No                60,988      750   60,238       -        -
----------------------------------------------------------------------------
Total                             202,193   47,373  151,623   1,964    1,233
---------------------------------------------------------------------------- 
(1)  Payments exclude ongoing operating costs, finance costs and payments    
made to settle derivatives.                                            
(2)  Payments denominated in foreign currencies have been translated at June 
30, 2014 exchange rates.                                               
(3)  Minimum work commitments include contracts awarded for capital projects 
and those commitments related to exploration and drilling obligations.  
/T/ 
The Company is subject to certain office, equipment and drilling rig leases. 
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
litigation proceedings 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 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 June 30, 2014 that have materially affected,
or are reasonably likely to materially affect, the internal controls over
financial reporting. 
Condensed Consolidated Interim Statements of Earnings and Comprehensive Income 
(Unaudited - Expressed in thousands of U.S. Dollars, except per share amounts) 
/T/ 
Three Months Ended        Six Months Ended  
June 30                 June 30  
2014        2013        2014        2013 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
REVENUE                                                                     
  Oil sales, net of                                                          
royalties                  $  76,040   $  76,223   $ 154,406   $ 155,589 
  Finance revenue                    85         183         182         229 
  Other revenue                   9,250           -       9,250           - 
---------------------------------------------------------------------------- 
85,375      76,406     163,838     155,818 
---------------------------------------------------------------------------- 
EXPENSES                                                                    
  Production and operating       19,025      17,529      38,603      32,061 
  General and administrative      6,844       6,319      13,852      13,419 
  Foreign exchange (gain)                                                    
loss                           3,121      (2,210)         11      (3,728)
  Finance costs                   1,858       2,212       3,750       4,414 
  Exploration                       227          71         665         178 
  Depletion, depreciation                                                    
and amortization              12,233      12,060      25,398      23,240 
  Unrealized (gain) loss on                                                  
financial instruments         (1,993)     (9,098)      1,526     (12,088)
  Impairment of exploration                                                  
and evaluation assets              -      19,710           -      19,710 
---------------------------------------------------------------------------- 
41,315      46,593      83,805      77,206 
---------------------------------------------------------------------------- 
Earnings before income taxes     44,060      29,813      80,033      78,612 
Income tax expense                                                          
 (recovery) - current            18,103      21,042      37,997      44,116 
- deferred                         (242)     (1,626)       (855)       (779)
---------------------------------------------------------------------------- 
17,861      19,416      37,142      43,337 
----------------------------------------------------------------------------
NET EARNINGS AND                                                            
 COMPREHENSIVE INCOME FOR                                                   
 THE PERIOD                   $  26,199   $  10,397   $  42,891   $  35,275 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Earnings per share                                                          
  Basic                       $    0.35   $    0.14   $    0.57   $    0.48 
  Diluted                     $    0.35   $       -   $    0.57   $    0.26 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
/T/ 
Condensed Consolidated Interim Balance Sheets 
(Unaudited - Expressed in thousands of U.S. Dollars) 
/T/ 
As at 
As at       December 
June 30,            31, 
2014           2013
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
ASSETS                                                                      
Current                                                                     
  Cash and cash equivalents                       $   110,057    $   122,092
  Accounts receivable                                 182,724        148,284
  Prepaids and other                                   10,710          8,460
  Product inventory                                       786          1,525
---------------------------------------------------------------------------- 
304,277        280,361
Non-Current                                                                 
  Restricted cash                                       1,547          1,546
  Deferred financing costs                              2,123          2,678
  Intangible exploration and evaluation assets         92,619         89,991
  Property and equipment                                                     
Petroleum properties                              292,463        288,756 
Other assets                                        4,650          4,288
  Goodwill                                              8,180          8,180
---------------------------------------------------------------------------- 
$   705,859    $   675,800
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
LIABILITIES                                                                 
Current                                                                     
  Accounts payable and accrued liabilities        $    32,753    $    38,392
---------------------------------------------------------------------------- 
32,753         38,392
Non-Current                                                                 
  Convertible debentures                               88,814         87,539
  Deferred taxes                                       48,008         48,863
  Other long-term liabilities                             760            816
---------------------------------------------------------------------------- 
170,335        175,610
---------------------------------------------------------------------------- 
SHAREHOLDERS' EQUITY                                                        
  Share capital                                       162,723        160,561
  Contributed surplus                                  17,202         15,692
  Retained earnings                                   355,599        323,937
---------------------------------------------------------------------------- 
535,524        500,190
---------------------------------------------------------------------------- 
$   705,859    $   675,800
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
/T/ 
Condensed Consolidated Interim Statement of Changes in Shareholders'
Equity 
(Unaudited - Expressed in thousands of U.S. Dollars) 
/T/ 
Three Months Ended        Six Months Ended  
June 30                 June 30  
2014        2013        2014        2013 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Share Capital                                                               
  Balance, beginning of                                                      
period                     $ 161,531   $ 159,259   $ 160,561   $ 158,721 
  Stock options exercised           890         104       1,606         500 
  Transfer from contributed                                                  
surplus on exercise of                                                    
options                          302          38         556         180 
----------------------------------------------------------------------------
  Balance, end of period      $ 162,723   $ 159,401   $ 162,723   $ 159,401 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Contributed Surplus                                                         
  Balance, beginning of                                                      
period                     $  16,310   $  12,879   $  15,692   $  11,714 
  Stock-based compensation                                                   
expense                        1,194       1,503       2,066       2,810 
  Transfer to share capital                                                  
on exercise of options          (302)        (38)       (556)       (180)
----------------------------------------------------------------------------
  Balance, end of period      $  17,202   $  14,344   $  17,202   $  14,344 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Retained Earnings                                                           
  Balance, beginning of                                                      
period                     $ 340,629   $ 290,303   $ 323,937   $ 265,425 
  Net earnings and total                                                     
comprehensive income          26,199      10,397      42,891      35,275 
  Dividends                     (11,229)          -     (11,229)          - 
----------------------------------------------------------------------------
  Balance, end of period      $ 355,599   $ 300,700   $ 355,599   $ 300,700 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
/T/ 
Condensed Consolidated Interim Statements of Cash Flows 
(Unaudited - Expressed in thousands of U.S. Dollars) 
/T/ 
Three Months Ended        Six Months Ended  
June 30                 June 30  
2014        2013        2014        2013 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
CASH FLOWS RELATED TO THE                                                   
 FOLLOWING ACTIVITIES:                                                       
OPERATING                                                                   
  Net earnings for the                                                       
period                     $  26,199   $  10,397   $  42,891   $  35,275 
  Adjustments for:                                                           
Depletion, depreciation                                                  
and amortization            12,233      12,060      25,398      23,240  
Deferred lease                                                           
inducement                     113         113         218         228  
Impairment of                                                            
exploration and                                                         
evaluation costs                 -      19,710           -      19,710  
Stock-based compensation      1,894       1,284       2,728       2,562  
Finance costs                 1,858       2,212       3,750       4,414  
Income tax expense           17,861      19,416      37,142      43,337  
Unrealized (gain) loss                                                   
on financial                                                            
instruments                 (1,993)     (9,098)      1,526     (12,088) 
Unrealized (gain) loss                                                   
on foreign currency                                                     
translation                  3,123      (2,165)         16      (3,670)
  Income taxes paid             (18,103)    (21,042)    (37,997)    (44,116)
  Changes in non-cash                                                        
working capital               (9,718)    (16,540)    (38,994)       (645)
----------------------------------------------------------------------------
Net cash generated by (used                                                 
 in) operating activities        33,467      16,347      36,678      68,247 
---------------------------------------------------------------------------- 
INVESTING                                                                   
  Additions to intangible                                                    
exploration and                                                           
evaluation assets             (2,506)     (1,040)     (3,702)     (4,516)
  Additions to petroleum                                                     
properties                   (14,183)    (18,229)    (27,263)    (32,906)
  Additions to other assets        (801)        (26)       (890)        (66)
  Changes in restricted cash          -           -          (1)         (1)
  Changes in non-cash                                                        
working capital               (2,854)     (4,624)     (2,539)     (5,517)
----------------------------------------------------------------------------
Net cash generated by (used                                                 
 in) investing activities       (20,344)    (23,919)    (34,395)    (43,006)
---------------------------------------------------------------------------- 
FINANCING                                                                   
  Issue of common shares for                                                 
cash                             890         104       1,606         500 
  Financing costs                     -      (2,155)          -      (2,205)
  Interest paid                    (209)       (185)     (4,056)     (3,558)
  Dividends paid                (11,229)          -     (11,229)          - 
  Increase (decrease) in                                                     
other long-term                                                           
liabilities                     (140)       (141)       (270)       (285)
----------------------------------------------------------------------------
Net cash generated by (used                                                 
 in) financing activities       (10,688)     (2,377)    (13,949)     (5,548)
----------------------------------------------------------------------------
Currency translation                                                        
 differences relating to                                                    
 cash and cash equivalents           15        (796)       (369)     (1,232)
----------------------------------------------------------------------------
NET INCREASE (DECREASE) IN                                                  
 CASH AND CASH EQUIVALENTS        2,450     (10,745)    (12,035)     18,461  
CASH AND CASH EQUIVALENTS,                                                  
 BEGINNING OF PERIOD            107,607     112,180     122,092      82,974 
---------------------------------------------------------------------------- 
CASH AND CASH EQUIVALENTS,                                                  
 END OF PERIOD                $ 110,057   $ 101,435   $ 110,057   $ 101,435 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
/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: 
Investor Relations
Steve Langmaid
(403) 444-4787
investor.relations@trans-globe.com
www.trans-globe.com 
INDUSTRY:  Energy and Utilities - Oil and Gas  
SUBJECT:  ERN 
-0-
-0- Aug/13/2014 11:00 GMT
 
 
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