The Energy Report

TransGlobe Energy Corp. TICKER: TGL:TSX; TGA:NASDAQ Visit Company Website TransGlobe Energy Corporation is an international exploration and production company based in Calgary, Alberta, Canada, with oil interests in Egypt and Yemen. The company has interests in seven international blocks totaling 5M acres, with active exploration and development drilling underway. In Egypt, TransGlobe has 50%–100% working interest in West Gharib, East Ghazalat and Nuqra with Q1 2011 production at 8,738 bopd; in Yemen, it has 13%–25% working interest in Blocks 32, 72, S-1 and 75 with Q1 2011 production at 2,480 bopd. Since inception, TransGlobe has recorded continuous growth in production, reserves and funds flow, on both a gross and per-share basis.

The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.

Expert Analysis

Alexander Klein, Dundee Securities (1/31/12) "TransGlobe Energy Corp.'s January production averaged 17,010 bbl/d, up 33% from December and up 41% from the Q411 average. . .with production already at 17 Mbbl/d the bottom end of the guidance range has been met. The company expects to fully fund its 2012 capital program from internally generated cash flow. . .we are maintaining our Buy recommendation and 12-month target price of $14.50."

Frederick Kozak, Canaccord Genuity (1/30/12) "We maintain our Buy rating and CA$20 target for TransGlobe Energy Corp. The company continues developing the West Gharib region, has added to this with the West Bakr acquisition and expects to close a second acquisition in Egypt's Western Desert, acquiring 50% and operatorship of South Alamein. . .January production of 17,010 bbl/d sets a new record for monthly production. . .it was slightly above our Q112 estimate of 16,075 bbl/d and is already approaching the mid-range of the company's 2012 average production guidance of 18,000 bbl/d."

Toby Pierce, GMP Securities (1/18/12) "TransGlobe Energy Corp. announced significant year-over-year (YOY) reserves growth, which can be attributed to the closing of the West Bakr acquisition and the company's successful 2011 drilling campaign. 1P reserves increased 38% to 28.2 MMbbl (from 20.5 MMbbl), representing production replacement of 275% in 2011. . .2P reserves grew 45% to 44.2 MMbbl (from 30.4 MMbbl), representing a production replacement of 412% in 2011 and 3P reserves grew 43% to 59.8 MMbbl (from 41.9 MMbbl), marking a production replacement in 2011 of 507%. . .we are reiterating our Buy recommendation."

Alexander Klein, Dundee Securities (1/18/12) "TransGlobe Energy Corp. released its 2011 year-end reserves yesterday and knocked the lights out in our opinion. . .2P reserves grew 45% to 44.2 MMbbl with a 412% production replacement ratio, up from the 250% three-year average. We calculate very good capital efficiency metrics for the year. . .our core (2P) net-asset-value-per-share estimate increases 17% to CA$9.57—with the stock trading below this level we believe it is undervalued. . .we believe the company remains a solid investment opportunity for a number of reasons."

David Popowich, Macquarie Capital Markets (1/18/12) "TransGlobe Energy Corp. released 2011 year-end reserves: 2P reserves increased 45% YOY, while 3P reserves increased 43%; Egyptian 2P reserves increased 61% YOY. . .TransGlobe has once again delivered solid year-end reserves growth; the stock continues to trade at a discount to core net asset value that we believe is unjustified considering the quality of TransGlobe's reserve bookings and the company's operational performance; success at the EGPC bid round, which would be transformational for TransGlobe, is basically a free option at the current share price."

• Corporate Fact Sheet (3/31/11)
• Corporate Presentation (3/31/11)

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