TransGlobe Energy Corporation Closes Share Purchase Agreement To Acquire COMPANIA ESPANOLA DE PETROLEOS, S.A.U.'s Cepsa Egypt SA B.V.

TransGlobe Energy Corporation announced the closing of the Share Purchase Agreement (SPA) to acquire the shares of Cepsa Egypt SA B.V. (Cepsa Egypt), a wholly owned subsidiary of COMPANIA ESPANOLA DE PETROLEOS, S.A.U. (a company registered in Spain) (Cepsa) which holds a 50% working interest in the South Alamein Concession, which occurred on July 26, 2012. The transaction highlights include: TransGlobe now holds a 100% working interest in the South Alamein Concession through two wholly owned subsidiaries; Cepsa Egypt is the Operator and holds a 50% working interest, the other 50% was acquired from EP Energy LLC on June 7, 2012; Total Cepsa transaction costs were approximately $4.7 million including inventory, fixed assets and working capital; Near term appraisal / development of the oil discovery well, Boraq-2X, which tested a combined 1,700 barrels of oil per day (Bopd) of light oil from two zones; The Company has identified six drillable exploration prospects developed from existing 3-D seismic which covers the entire South Alamein Concession area.