TransGlobe Energy Signs New Concession Agreements in Egypt

TransGlobe Energy Corporation

is pleased to announce the signing of agreements for the four new Production Sharing Concessions in Egypt. All dollar values are expressed in United States dollars unless otherwise stated.ARAB REPUBLIC OF EGYPT NEW CONCESSIONS - EGPC BID ROUND TransGlobe signed the four Production Sharing Concession agreements ("PSC"), won in the EGPC bid round in 2011/2012, at an official signing ceremony with the Ministry of Petroleum held on November 7, 2013. These new concessions add approximately 800,000 net acres to TransGlobe's land holdings in Egypt and brings the total number of TransGlobe Egyptian PSCs to eight (seven are operated). The Company has committed to $101.1 million of expenditures on the new blocks over the next three years. The total commitment includes $40.6 million in signature bonuses that were settled through an offset to TransGlobe's outstanding accounts receivable with the government of Egypt. Each concession consists of an initial three-year exploration period with the provision for two extension periods of two years each for a total exploration period of seven years. "TransGlobe is extremely excited about the potential to grow our base of operations materially over