Reporting Issuer:

TransGlobe Energy Corporation ("TransGlobe" or the "Company")
Suite 2900, 330 – 5^th Avenue S.W.
Calgary, Alberta
T2P 0L4
Tel: (403) 264-9888 Fax: (403) 264-9898

Date of Material Change:

February 10, 2003

News Release

Press release dated February 10, 2003, disclosing in detail the material summarised in this material change report was disseminated through the facilities of CNN Newswire (Canada and U.S. disclosure package) on February 10, 2003 and would have been received by the securities commissions where the Company is a "reporting issuer" and the stock exchanges on which the securities of the Company are listed and posted for trading in the normal course of their dissemination.

Summary of Material Change:

On February 10, 2003, TransGlobe announced increased production rates from the Tasour field in Block 32, Republic of Yemen and that the drilling of a well on the Haibish structure to the northwest of Tasour is almost completed. The well did not encounter hydrocarbons of commercial quantities.

Oil production from the Tasour field increased to more than 17,500 Bopd at the end of January (TransGlobe’s share 2,417 Bopd before royalties and tax) due to the installation of increased pump capacity for the export pipeline.

Full Description of Material Change:

See the attached press release.

Reliance on Confidentiality Provisions:

Not Applicable

Omitted Information:

Not Applicable

Senior Officers:

For further information, please contact Ross G. Clarkson, President and CEO, or Lloyd W. Herrick, Vice-President and COO, at TransGlobe Energy Corporation, Suite 2900, 330 – 5^th Avenue S.W., Calgary, Alberta T2P 0L4 (403) 264-9888.

Statement of Senior Officer:

The foregoing accurately discloses the material change referred to in this report.

DATED February 10, 2003, at the City of Calgary, in the Province of Alberta.

TRANSGLOBE ENERGY CORPORATION ANNOUNCES UPDATE ON
REPUBLIC OF YEMEN OPERATIONS

Monday, February 10, 2003 Calgary, Alberta - TransGlobe Energy Corporation (“TransGlobe” or the “Company”) (TSX symbol "TGL"; OTC-BB symbol "TGLEF") is pleased to announce increased production rates on Block 32 in the Republic of Yemen.

Block 32, Yemen (13.81% working interest)

The oil production from the Tasour-field was increased to more than 17,500 BOPD at the end of January (TransGlobe’s share 2,417 Bopd before royalties and tax) due to the installation of increased pump capacity for the export pipeline. Additional work on the export pump system to expand the shipping capacity to 25,000 Bopd is expected to be complete by the end of February. Currently there are three wells shut in as the production capability exceeds the export pump capacity. With the completion of the additional work, Tasour field has the capacity to produce more than 20,000 Bopd with all six wells on full production.

Drilling of a well on the Haibish structure to the northwest of Tasour is now almost completed. The well did not encounter hydrocarbons of commercial quantities. TransGlobe’s share of the well costs (approximately US$170,000) will be recovered from future cost-oil from Tasour production. The drilling rig will be moved to a non-owned adjacent block for one well as part of a multi-well rig sharing contract to reduce costs. It is expected that the drilling rig will be available to the Block 32 Joint Venture group in June 2003, to drill a development well at Tasour #9.

This release includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the US Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects, are forward-looking statements. Although TransGlobe believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include oil and gas prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.