CHALLENGING MARKET June 2020 AIM & TSX: TGL NASDAQ: TGA - - PowerPoint PPT Presentation

www.trans-globe.com

AIM & TSX: TGL NASDAQ: TGA

2020 CORPORATE PRESENTATION

AN AGILE RESPONSE TO A CHALLENGING MARKET

June 2020

CAUTIONARY STATEMENT

TransGlobe Energy | Corporate Presentation | June 2020

Slide 2

The information provided in this presentation is provided as of June 1, 2020 for informational purposes only, is not complete, is based (in part) on information prepared for internal evaluation purposes and may not contain certain material information about TransGlobe Energy Corporation ("TransGlobe", "TGL", "TGA" or the "Company"), including important disclosures and risk factors associated with the information disclosed in this presentation. This presentation does not constitute an offer to sell or a solicitation of an offer to buy any security in Canada, the United States, the United Kingdom or any other jurisdiction. The content of this presentation has not been reviewed

• r approved by any securities commission or regulatory authority in Canada, the United States, the United Kingdom or any other jurisdiction. TransGlobe expressly disclaims

any duty to make disclosure or any filings with any securities commission or regulatory authority, except as required by applicable securities laws. See "Cautionary Statements" beginning on slide 40 for other important disclosures regarding forward looking information, financial outlook and other financial matters, oil and gas information and other important information. All dollar values are expressed in US dollars unless otherwise stated. All production and reserves are company gross working interest share of volumes before deduction of royalty unless otherwise stated. Please see the table entitled “Production Disclosure” at the end of this presentation for the detailed constituent product types and their respective quantities measured at the first point of sale for all production amounts disclosed in this presentation on a Bopd and Boepd basis.

SHORT TERM PRIORITIES

TransGlobe Energy | Corporate Presentation | June 2020

Slide 3

• In the near term, TransGlobe is focused on:

‒ Ensuring the safety and well-being of all TransGlobe employees and contractors, ‒ Preserving its strong balance sheet, ‒ Deferring all capital investment beyond critical HSE while market disruption continues, ‒ Preserving shareholder value, and ‒ Working with Egyptian Government to rapidly return the business to profitability at current low oil prices

• Ability to respond to the current market conditions is a testament to TransGlobe’s strong team and the

flexibility of TransGlobe’s operated asset portfolio

• Practical measures optimize value for today and into the future

TransGlobe has responded to the unprecedented macro environment

OVERVIEW

Slide 4

Focused on capital discipline while building a profitable, growth oriented international portfolio

Strong balance sheet and low debt

TransGlobe remains confident in its ability to weather the current oil price disruption

Capital preservation balances against track record of returning value to shareholders

$0.035/share dividend paid in April & September 2019 – currently suspended

Established operated production

Revised FY 2020 production guidance to 13.3-14.3 Mboepd

Strong platform to grow in Egypt and surrounding region

Management team actively seeking merger and acquisition opportunities in Egypt and region

Growth underpinned by resource base

Gross 2P reserves of 45.3 MMboe

100% control of capital program

Agile response to oil price volatility with capital flexibility and high degree of investment discretion

TransGlobe Energy | Corporate Presentation | June 2020

See Cautionary Statements – "Forward-Looking Statements and Information“ and “Oil and Gas Information” Refer to Slide Notes

TRANSGLOBE LONG TERM PRIORITIES

TransGlobe Energy | Corporate Presentation | June 2020

Slide 5

Operational Sustainability Returning Value to Shareholders ESG Energy Transition

TransGlobe maintains four key priorities in long- term planning

• Operational Sustainability: Prudently manage reserve

and resource base to provide production and cash flow

• ver the long-term
• Returning Value to Shareholders: Contrast internal
• pportunities for capital deployment with
• pportunities to return cash to shareholders – focus is

creating shareholder value

• Energy Transition: Managing strategies and workforce

for TransGlobe to utilize new technologies and renewables that can more efficiently convert reserves into production

• ESG: Cognizant of environmental, social, and

governance impacts in all company activities, with

• verarching focus on safety of all employees

CORPORATE OVERVIEW

STRONG PRODUCTION AND CASH FLOW PROVIDES VALUATION UPSIDE

Slide 6

Enterprise Value Estimate ($ MM)

Sha hares Out Outst stand nding g (5/31/ /31/20) 0) – MM sha hares es ~72.5 Mark rket Capitalization

• n (5/31

/31/20 /20) - $0.53 53/s /share $38.4 Debt (03/31 3/31/20 /20) (Pre Prepay y Agree greement nt + Canadi dian RB RBL) $36.6 Work Working g Capi pital (03/31 3/31/20 /20)Excl clud uding g Crud rude e Invent nventory $47.1

• Est. Marke

ket Value of Crude e Invent nventory (~0. 0.2 MMbbl bls- 03/31/20) $9.8 Ent nter erpri rise e Value $18.4

15.0 Mboepd

Q1-2020 Production

$38.4 MM

Market Capitalization

$25.7 MM

Q1-2020 Funds Flow

$18.4 MM

Enterprise Value

45.3 MMboe

2P Reserves 12/31/19

TransGlobe Energy | Corporate Presentation | June 2020

$51.6 MM

Q1-2020 Net Sales Proceeds

• 5,000

10,000 15,000 Q1- 20 Q2 Q3 Q4

2020E Production Guidance (boepd)

Forecast Actuals

1 2 3 4 5

Q1 Q2 Q3 Q4 2020E Capital Spending Guidance, US$MM

Egypt Canada

2020E Guidance

2 4 6 8 10 12 14 16 18 20 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20

Production (Mboepd)

TransGlobe Energy Corporation Production

West Gharib West Bakr NW Gharib South Ghazalat Canada

See Cautionary Statements – "Forward-Looking Statements and Information“ and “Oil and Gas Information” Refer to Slide Notes

354 113 88 49 14

ENI Apache Shell BP TGL

Gross Production (Mboepd)

Major Oil Producers in Egypt (2018)

MACRO VIEW: EGYPT

TransGlobe Energy | Corporate Presentation | June 2020

Slide 7

Macro Statistics

• Oil Reserves: 3 billion barrels
• Oil Production (2018): ~0.7 MMbbl/d
• Natural Gas Production (2018): ~5.7 Bcf/d
• Net petroleum importer

‒ Primary energy consumption focused on natural gas and oil ‒ Brownfield initiative announced by government focused on attracting investment to increase production in legacy fields

• Service / Industrial-Based Economy

‒ Government focused on increased oil production ‒ Need for high-value jobs / education across the workforce

Refer to Slide Notes

EGYPT

Cairo

1,025 730 452 398 2

CNRL Suncor Cenovus Imperial Oil TGL

Gross Production (Mboepd)

Major Oil Producers in Canada (2018)

Refer to Slide Notes

MACRO VIEW: CANADA

TransGlobe Energy | Corporate Presentation | June 2020

Slide 8

Macro Statistics

• Oil Reserves: 168 billion barrels
• Oil Production (2018): ~5 MMbbl/d
• Natural Gas Production (2018): ~18 Bcf/d
• Net petroleum exporter

‒ Primarily to the United States

• Advanced energy industry

‒ Highly educated oil and gas workforce ‒ Highly developed transportation infrastructure ‒ Capable service sector with significant availability of drilling/completion expertise

ALBERTA

Calgary

CANADA UNITED STATES

OPERATIONAL SUSTAINABILITY

TransGlobe Energy | Corporate Presentation | June 2020

Slide 9

TransGlobe strategically manages production as it invests in its future

• Prudently managing operations to achieve highest

potential over asset lifetime

• Utilizing technology and extraction best practices,

TransGlobe achieves maximum value from existing assets

‒ TransGlobe’s world class team has delivered consistent results ‒ Egyptian assets’ production has increased >30 years post discovery despite conventional wisdom

• Over the past three years, 2P Reserves have remained

consistent without asset acquisitions

‒ Exploration success and maturation of 3P reserves / contingent resource

• Proven ability to maintain resource base and

production allows any asset acquisition/expansion to focus on expanding resource access

Contingent Resource 3P Reserves 2P Reserves 1P Reserves

Production & Cashflow

2 4 6 8 10 12 14 16 18 10 20 30 40 50 60 2017 2018 2019 Production (Mboepd) 2P Reserves (MMboe)

Reserve Continuity

Canada Egypt Production

OPERATIONAL SUSTAINABILITY: MAINTAINING RESERVE BASE

TransGlobe Energy | Corporate Presentation | June 2020

Slide 10

Reserves remain flat with conservative investment

• TransGlobe has maintained 2P reserve levels since

2017 through effective resource maturation

• Reserves maturity management enables consistent

production levels to be maintained over the long term

• Replaced 2P reserves for ~$9 per boe

‒ Have invested $116mm of capital since 2017

• Continue to maximize value from mature assets

Refer to Slide Notes

RETURNING VALUE TO SHAREHOLDERS

CASHFLOW PRIORITIES

TransGlobe Energy | Corporate Presentation | June 2020

Slide 11

Internal Opportunities Acquisitions Share Buybacks Dividends

• Balanced approach
• Prudently weigh capital deployment opportunities against near-term monetization
• Continually maturing the portfolio to provide attractive investment opportunities

TransGlobe is focused on shareholder value creation, while minimizing balance sheet risk

TRANSGLOBE’S VISION IN THE NEW ENERGY WORLD

TransGlobe Energy | Corporate Presentation | June 2020

Slide 12

• Strong engineering team excels at project delivery and
• ptimization

‒ Focus has been on hydrocarbons, but experienced team has the ability to be the foremost energy team within Egypt

• TransGlobe will be part of the new energy world

‒ Will continue to invest to meet the demand for hydrocarbons, and explore projects that create value and contribute to TransGlobe’s ESG goals ‒ Intended connection to high-line power grid in Egypt

• perations will reduce on-site diesel power dependence

(dependent on long-term economics)

• Focus on staying nimble in a transitioning industry

‒ Will continue prudent capital management practices to manage changes in oil prices

TransGlobe is a leading independent energy company

ESG STRATEGY

TransGlobe Energy | Corporate Presentation | June 2020

Slide 13

Governance

• Majority independent Board

with >50% new directors with <4 years on the Board

• Board committees chaired by

independent directors

• Staff education, training and

monitoring for compliance with Canadian CFPOA legislation, US FCPA laws, and the UK Bribery Act

• Two thirds reduction in Egyptian

total recordable injury cases

• ver last 5 years

Social

• $1.2 billion invested into Egypt
• Charitable support and

sponsorship of Ras Gharib hospital

• Paid over $2.1 billion in taxes

and royalties in Egypt

• Operations directly support
• ver 1,000 jobs in the Ras

Gharib region Environment

• Investment in pipeline

replacements / upgrades to reduce reliance on trucked oil

• Corporate commitment to

carbon disclosure reporting and reduction plan

• Potential to access local West

Bakr wind farm (250MW) due

• n-stream 2021 to power various

field needs

• Ras Gharib shoreline remediation

project

PRODUCTION AND CAPITAL GUIDANCE

• Budgeted wells spudded prior to recent oil price disruption

‒ Canadian South Harmattan well has been drilled but not completed until oil prices improve to maximize value of flush production ‒ Egypt HW-2A is drilled and being completed

• Other spending relates to HSE, contractual training bonuses,

select recompletions and workovers, and land retention commitments

‒ Only those recompletions and well optimization projects with robust economics will occur

• 5,000

10,000 15,000 Q1-20 Q2 Q3 Q4

2020E Production (boepd)

Forecast Actuals

1 2 3 4 5 Q1 Q2 Q3 Q4

2020E Capital Spend, US$MM

Egypt Canada TransGlobe Net Capital (US$MM) Gross Well Count Concession Development Exploration Total New Drills Total Wells Wells Other Wells Capex Devt Expln West Gharib

• West Bakr

1.2 4.1

• 5.3

1

• 1

NW Gharib

• South Ghazalat
• Egypt

1.2 4.1

• 5.3

1

• 1

Canada 1.7 0.1

• 1.8

1

• 1

Total 2.9 4.2

• 7.1

2

• 2

Slide 14

TransGlobe Energy | Corporate Presentation | June 2020

Refer to Slide Notes

YEAR-END RESERVES SUMMARY

Total proved plus probable (“2P”) gross reserves of 45.3 MMboe at year-end 2019:

• 2019 production of ~5.8 MMboe (~5.0 MMbbls Egypt

and ~0.8 MMboe Canada)

• 2P Reserves are 3% higher YOY
• PDP Reserves are 6% higher YOY following the

conversion of 1P undeveloped reserves

‒ 1P being 5% lower YOY

• 2P Positive Adds/Revisions of 7.0 MMboe
• f gross 2P reserves

‒ drilling additions in both Egypt and Canada ‒ improved performance from production optimization in Egypt

• Replaced 119%, 82% and 135% of 2019 production on a

PDP, 1P and 2P gross reserves basis, respectively

2019 Reserves Summary PDP 1P 2P 3P

2018 Year End Reserves (MMboe) 17.5 26.9 44.1 61.8 2019 Adds/Revisions 6.8 4.3 7.0 7.3 2019 Production

• 5.8

2019 Year End Reserves (MMboe) 18.5 25.4 45.3 63.3 Change vs Year End 2018 (%) 6.0%

• 5.0%

3.0% 2.0% Production Replacement Ratio (%) – (ex A&D, economic factors) 119% 82% 135% 158%

NPV 10% Before tax $MM Dec 31/19 $161 $200 $298 $393 NPV 10% After tax $MM Dec 31/19 $161 $198 $288 $376

Slide 15

TransGlobe Energy | Corporate Presentation | June 2020

Refer to Slide Notes

COMPANY INDICATIVE NETBACKS

Slide 16

Egypt Assumptions:

• Using anticipated 2020 Egypt production profile
• Ras Gharib price differential estimate of $9.00 per bbl applied consistently

at all price points

• Concession differentials of 4%/5%/3% applied to WG/WB/NWG

respectively

• Opex estimated at ~$9.50/bbl
• Maximum cost recovery resulting from accumulated cost pools in WG and

NWG Canada Assumptions:

• Using anticipated 2020 Canada production profile
• Edmonton Light to Harmattan discount = C$2.50/bbl
• Opex estimated at ~C$11.70/boe
• Aeco gas price C$1.70/mmbtu for $20 WTI and increases C$0.10/mmbtu

for every $10/bbl WTI

• Edmonton Light = $3.00 off of WTI
• NGL mixture price = 45% of Edmonton Light
• Takes into consideration Canadian tax pools

TransGlobe Energy | Corporate Presentation | June 2020

$(5.14) $(1.00) $3.15 $6.49 $8.76 $11.02

• $10
• $5

$0 $5 $10 $15 $20 $30 $40 $50 $60 $70

Netback ($/bbl) Brent Egypt (US$)

$5.99 $14.79 $22.81 $30.06 $37.55 $44.93 $0 $10 $20 $30 $40 $50 $20 $30 $40 $50 $60 $70

Netback ($/bbl) WTI Canada - Oil (US$)

US$ MMBtu $1.20 $1.27 $1.34 $1.41 $1.48 $1.55 $(1.70) $0.43 $2.38 $4.15 $5.98 $7.79

• $4
• $2

$0 $2 $4 $6 $8 $20 $30 $40 $50 $60 $70

Netback ($/boe) WTI Canada - Gas/NGLs (US$)

Refer to Slide Notes

COMMODITY PRICE DISRUPTION LEVERS

TransGlobe Energy | Corporate Presentation | June 2020

Slide 17

• Transparent and regular discussions with lenders

‒ Confident in ability to weather price disruption

• Identifying optimization opportunities for operating and general and administrative costs
• 100% operated assets provide capital flexibility

‒ Deferred investments ‒ Capital focused on HSE investment and investment critical for value preservation

• Dividend suspended

‒ Board to evaluate on a semi-annual basis once it is appropriate to reinstate

TransGlobe intends to use all available tools to return to a positive free cash flow position, minimizing balance sheet risk and positioning itself for future success

EGYPTIAN ASSET PORTFOLIO

A UNIQUE POSITION IN EGYPT

Slide 19

Focused on extracting maximum potential from known reservoirs and leveraging position Targeting inorganic growth opportunities through acquisitions Best-in-class operator in Egypt with 15 years of in-country operating experience Strong relationship with government Ability to market 100% of its Eastern Desert entitlement crude Poised for growth post consolidation of its Eastern Desert PSCs and strengthened oil prices

TransGlobe Energy | Corporate Presentation | June 2020

See Cautionary Statements – "Forward-Looking Statements and Information“

EGYPT ACREAGE – FOUR 100% WI CONCESSIONS

Three development / production concessions in the Eastern Desert

• W Bakr, W Gharib and NW Gharib
• Negotiating to amend, extend and consolidate the three concessions into a single

new concession in 2020

• Consolidation will reset the economic threshold for investment to a much lower
• il price

South Ghazalat development lease

• SGZ-6X well on production in December 2019

NW Gharib NW Gharib W Gharib W Gharib W Gharib W Bakr

NW Gharib Eastern Desert Concession Development Leases West Gharib 5 Northwest Gharib 4 West Bakr 2 Western Desert Concession Development Leases South Ghazalat 1 Slide 20

TransGlobe Energy | Corporate Presentation | June 2020

Subject to approval by Egyptian authorities, see Cautionary Statements – "Forward-Looking Statements and Information“

Cairo

South Ghazalat (Development) Nile River Delta Eastern Desert Concessions (Development)

Western Desert Eastern Desert

100 km

N

EASTERN DESERT: THREE 100% WI CONCESSIONS

Slide 21

Eastern Desert acquisitions (2007 and 2011) are a template for the Company’s future strategy:

• Older fields, large resource, unloved by prior owners
• Rigorous technical work, capital discipline and transfer of proven western oilfield

technologies

• Drilled over 250 wells in past 10+ years

Egypt Production:

• 2020 revised guidance of 11.3 – 12.1 Mbopd
• 2020 currently averaging ~12.7 Mbopd (YTD February)

Egypt Reserves:

• 1P – 15.6 MMbbl at December 31, 2019
• 2P – 26.7 MMbbl at December 31, 2019

Beyond 2020:

• Post concession consolidation, advance primary, secondary, and tertiary development

programs to increase recoveries and production

• Assets become investible at much lower oil prices

TransGlobe Energy | Corporate Presentation | June 2020

Midpoint of guidance; see Cautionary Statements – "Forward-Looking Information and Statements“ and “Oil and Gas Information” Refer to Slide Notes

Appraise HW-2X Discovery NWG Exploration NWG-3X pool appraisal H-block Exploration Arta Phase 1 Development

Deferred Activity

Recompletes/optimization and infill drilling

WEST BAKR CONCESSION – K/M/H FIELD

Slide 22

Fields discovered and producing since early 1980s

• Acquired in 2011, then producing ~3,500 Bopd
• Currently producing >8,000 Bopd (as of February 2020)

Revised 2020 Plan:

• Development:

‒ Development drilling (HW-2A), other drilling deferred ‒ Recompletions (~8 wells)

• Optimization:

‒ Artificial lift upgrades (~12 wells) ‒ Completion of K station Phase 3 CPF upgrade ‒ Additional water disposal (~6 wells)

• Exploration:

‒ Deferred

TransGlobe Energy | Corporate Presentation | June 2020

See Cautionary Statements – "Forward-Looking Information and Statements“ and “Oil and Gas Information” Refer to Slide Notes HW-7X HW-2A HW-8 K-62 K-64

H-Block K-Block West Bakr Concession

Deferred Activity

WEST GHARIB CONCESSION – ARTA LEASE

Slide 23

Fields discovered and producing since early 1980s

• Acquired in 2007, then producing ~3,000 Bopd
• Currently producing >3,600 Bopd (as of April 2020)

Revised 2020 Plan:

• Development:

‒ Development drilling deferred ‒ Recompletions (~4 wells)

• Post consolidation, this area will be early focus, application of

horizontal drilling – similar to what is done in Canada

TransGlobe Energy | Corporate Presentation | June 2020

See Cautionary Statements – "Forward-Looking Information and Statements“ and “Oil and Gas Information” Refer to Slide Notes Arta-50 Arta-Hz-1 Arta-76 NWG-1D NWG-1E

East Arta NWG-DL-3 West Gharib – Arta Lease NWG-DL-2 Arta

Arta-75 Deferred Activity

NW GHARIB CONCESSION – DEVELOPMENT LEASE #1

Slide 24

Acquired NW Gharib through EGPC Bid Round in 2013

• Multiple field discoveries 2014 – 2016
• Infrastructure and knowledge synergies

Revised 2020 Plan:

• Development:

‒ Development drilling deferred

• Optimization:

‒ Monitor and enhance NWG-38A pool water injection

• Exploration:

‒ Drilling deferred

TransGlobe Energy | Corporate Presentation | June 2020

See Cautionary Statements – "Forward-Looking Information and Statements“ and “Oil and Gas Information” NWG-3X NWG-3B-2 NWG-46X NWG-44A

Deferred Activity

SOUTH GHAZALAT CONCESSION

Slide 25

• S. Ghazalat:
• SGZ-6X discovery well put on production in late December 2019

‒ Initial rate of 800-1,000 Bopd ‒ Currently restricted to approximately 200 Bopd to manage the reservoir and optimize facilities

Revised 2020 Plan:

• Development:

‒ Development drilling deferred

• Exploration:

‒ Drilling deferred ‒ Seismic mapping ongoing on reprocessed data to identify additional

• pportunities

TransGlobe Energy | Corporate Presentation | June 2020

See Cautionary Statements – "Forward-Looking Information and Statements“ and “Oil and Gas Information” Refer to Slide Notes SGZ-6A SGZ-6X SGZ-7B Deferred Activity

CANADIAN ASSET PORTFOLIO

CANADIAN ASSETS – EXTENDING THE CARDIUM

Slide 27

Revised 2020 Plan

• Drill one Cardium 2-mile horizontal well in South Harmattan

− 1 Development well offsetting 2-20 − Holds 8 sections of land extending South Harmattan Fairway south − Well completion deferred until oil price improves

• Defer drilling three horizontal wells

Revised 2020 Guidance of 2,000 to 2,200 boed Medium-Term (2020+)

• Production Growth at South Harmattan
• Production Maintenance at Harmattan Proper
• Unlock Ellerslie Hz potential

Reserves

• 1P – 9.9 MMboe at December 31, 2019
• 2P – 18.6 MMboe at December 31, 2019
• ~ 67% light oil and liquids

TransGlobe Energy | Corporate Presentation | June 2020

See Cautionary Statements – "Forward-Looking Information and Statements“ and “Oil and Gas Information” Refer to Slide Notes

TGL Rights 2020 drilling Location

5 miles

SOUTH HARMATTAN RESOURCE FAIRWAY

Slide 28 HARMATTAN

TGL Cardium Rights

• TransGlobe has accumulated 18.5 sections of Cardium mineral rights

― Each block or section is equivalent to 1 square mile (640 acres or 256 hectares) and may accommodate up to four 1-mile horizontal wells

• Lands, or mineral rights, are principally leased from the provincial government

― Horizontal drilling royalty incentives reduce royalties to 5% until well costs are recovered

• Company’s 2-20 well targeted a concept developed by TransGlobe’s technical

team in area previously considered to be in a hydrocarbon transition zone ― 2-20 well estimated IP30 of 417 Boepd, IP60 of 341 Boepd ― Well de-risks South Harmattan Cardium resource fairway

• Highly developed area, with access roads, gas pipeline capacity and oil

takeaway facilities

• TransGlobe’s revised 2020 capital program includes the drilling of one 2-mile

horizontal well that offsets the 2-20 well

• Up to 72, 1-mile horizontal locations at South Harmattan that may be
• ptimized with additional 2-mile and 1½-mile horizontals
• A further 30, 1-mile horizontal locations available in the core Harmattan area

HARMATTAN LOCHEND LOCHEND

~30 km NW of Calgary

2-20 2-mile horizontal well

SOUTH HARMATTAN FAIRWAY

TransGlobe Energy | Corporate Presentation | June 2020

The 2019 out-post well derisked up to 72 additional hz locations

SOUTH HARMATTAN TYPE WELLS AND 2-20 FORECAST

Slide 29

• Suspended planned material capital redeployment to South

Harmattan in 2020 until oil price improves

• De-risked South Harmattan resource fairway offers material

returns and capital efficiencies

• South Harmattan 2-20 well production and cash flow

forecast compares favourably with Company type well estimates for 1-mile and 2-mile horizontals in the core Harmattan acreage

• Scope to materially grow self-funded Canadian free cash

flow

Capital F&D Netback Recycle Ratio Payout IRR NPV10

(MMUSD) ($/boe) ($/boe) X (yrs) (%) (MMUSD)

1 Mile Type Well 2.0 9.58 28.86 3.0 3.6 24 1.4 2 Mile Type Well 3.1 7.33 29.64 4.0 2.7 33 3.2 2-20 Equivalent 3.0 6.85 28.75 4.2 2.2 43 3.6

TransGlobe Energy | Corporate Presentation | June 2020

Refer to Slide Notes

SUMMARY

Slide 30

• 2019 exceeded expectations

‒ Egyptian well performance was better than expected, resulting in two upward revisions to production guidance ‒ South Harmattan 2-20 well surprised to the upside

• 2020 production guidance is cautious given short production history of new wells and deferral of

capital program until there is an improvement in the commodity price

• South Harmattan is potentially significant to the Company

‒ Provided ability to shift capital to Canada and create near-term value to shareholders that will help maintain or increase real returns to our shareholders

• Tangible progress toward merging Eastern Desert concession agreements

‒ Ability to ramp-up capital program in the second half of 2020, once commodity prices improve

TransGlobe Energy | Corporate Presentation | June 2020

See Cautionary Statements – "Forward-Looking Information and Statements“ and “Oil and Gas Information”

CORPORATE INFORMATION

Slide 31

Management

• Randy Neely – Director, and President & CEO
• Geoff Probert – VP and COO
• Edward Ok – VP Finance and CFO

Directors

• David Cook – Chairman
• Ross Clarkson – Director
• Steve Sinclair – Director
• Carol Bell – Director
• Edward LaFehr – Director
• Tim Marchant – Director

TransGlobe Energy | Corporate Presentation | June 2020

Banks

• Sumitomo Mitsui Banking Corporation Europe
• Alberta Treasury Branch

Advisory

• GLJ Petroleum Consultants – Independent Reserve

Engineer

• Deloitte – Auditor
• Burnet, Duckworth, & Palmer – Legal Counsel
• Canaccord Genuity – Nominated Advisor & Broker
• Tailwind Associates – Investor Relations Advisor

SLIDE NOTES

SLIDE NOTES

TransGlobe Energy | Corporate Presentation | June 2020

Slide 33

• Slide 4

‒ Based on GLJ evaluations effective 12/31/19. See Cautionary Statements – "Oil and Gas Information“

• Slide 6

‒ Includes: $75MM Prepayment Agreement from Mercuria Energy Trading SA ($30MM drawn as at 03/31/2020); and C$25MM Reserves-based lending facility (C$9.9MM drawn as at 03/31/2020) ‒ Current Assets (including cash and cash equivalents) minus Current Liabilities, excludes inventoried crude oil ‒ Estimated value of inventoried crude oil is based on average realized price of Gharib blend for Q1 ‘20 sales/inventoried crude oil as at 03/31/2020 ‒ Enterprise value calculated as Market Capitalization + Long term debt – Working capital (Current Assets (excluding book value of crude inventory)- Current Liabilities) – Market value of inventoried crude oil ‒ Based on GLJ reserves evaluation effective 12/31/19. See Cautionary Statements – "Oil and Gas Information“ ‒ Inclusive of hedging gains

• Slide 7

‒ US Energy Information Administration, Egypt Country Analysis, May 2018 ‒ British Petroleum Company, BP Statistical Review of World Energy 2019, June 2019, pages 8, 14, 16, 18, 30, 32 ‒ CIA World Factbook: Egypt ‒ Apache Corporation, News Release: Fourth-Quarter and Full-Year 2019 Financial and Operational Results, Statement of Consolidated Operations pg 10 ‒ British Petroleum Company, Annual Report and Form 20-F 2018, pg 288 ‒ Shell Investors’ Handbook 2014-2018, Section 8: Data, pg 97 ‒ Eni: Full Year 2019 and Fourth Quarter Results, Key Operating and Financial Results pg 36

• Slide 8

‒ British Petroleum Company, BP Statistical Review of World Energy 2019, June 2019, pages 8, 14, 16, 18, 30, 32 ‒ Canadian Natural Resources, Annual Information Forum 2018, pg 36 ‒ Suncor Energy, Annual Report 2019, pages 21 and 38 ‒ Cenovus Energy, News Release: Cenovus delivers strong 2019 financial and operating performance; Company generates $2.5 billion of free funds flow; reduces net debt, February 12, 2020, pg 1 ‒ Imperial Oil, News Release: Imperial announces 2019 financial and operating results, January 31, 2020

SLIDE NOTES

TransGlobe Energy | Corporate Presentation | June 2020

Slide 34

• Slide 10

‒ TransGlobe Annual Reports 2018-2019 ‒ TransGlobe 2020 Capital Budget and 2019 Year-End Results

• Slide 14

‒ Other includes workovers, recompletions and maintenance. Also seismic within exploration categories.

• Slide 15

‒ Based on GLJ evaluations effective 12/31/18 and 12/31/19. See Cautionary Statements – "Oil and Gas Information“ ‒ NPV’s GLJ evaluation effective 12/31/2019 forecast pricing ‒ Reserves are Gross working interest reserves before royalties ‒ Tables may not total due to rounding ‒ 6 Mcf = 1 boe

• Slide 16

‒ 6 Mcf = 1 boe

• Slide 21

‒ Based on GLJ evaluations effective 12/31/19

• Slide 22

‒ Production is based on field estimates

• Slide 23

‒ Production is based on field estimates ‒ Note that two of the vertical wells are on NW Gharib Development Lease-2

SLIDE NOTES

TransGlobe Energy | Corporate Presentation | June 2020

Slide 35

• Slide 25

‒ Production is based on field estimates

• Slide 27

‒ Based on GLJ evaluations effective 12/31/19

• Slide 29

‒ Netback in the first year ‒ Oil price forecast is April 27th WTI Strip ($35.21 USD/BBL in 2021) with a -$ 1USD/BBL differential to Edmonton Light ‒ Gas price forecast is $1.68 USD/GJ flat

APPENDIX

RECONCILIATION OF CHANGES IN RESERVES

Slide 37

The following tables detail reconciliation of the changes in TransGlobe’s gross light and medium crude oil, heavy oil, associated and non-associated (combined) conventional natural gas and NGL reserves as at December 31, 2019 compared to such reserves as at December 31, 2018.

TransGlobe Energy | Corporate Presentation | June 2020

RECONCILIATION OF CHANGES IN RESERVES

Slide 38

TransGlobe Energy | Corporate Presentation | June 2020

PRODUCTION DISCLOSURE

Slide 39

TransGlobe Energy | Corporate Presentation | June 2020

Production - Year End 2019 16.0 Mboepd 2.2 Mbbl/d Light and Medium Crude 12.4 Mbbl/d Heavy Crude 5.2 MMcf/dNatural Gas 0.5 Mbbl/d Associated Natural Gas Liquids South Harmattan Well - IP 30 417 Mboepd 379 Mbbl/d Light and Medium Crude 197 MMcf/dNatural Gas 6 Mbbl/d Associated Natural Gas Liquids South Harmattan Well - IP 60 341 Mboepd 302 Mbbl/d Light and Medium Crude 196 MMcf/dNatural Gas 6 Mbbl/d Associated Natural Gas Liquids Guidance - Corporate 13.3 Mboepd 1.6 Mbbl/d Light and Medium Crude 10.4 Mbbl/d Heavy Crude 5.1 MMcf/dNatural Gas 0.5 Mbbl/d Associated Natural Gas Liquids 14.3 Mboepd 1.7 Mbbl/d Light and Medium Crude 11.1 Mbbl/d Heavy Crude 5.6 MMcf/dNatural Gas 0.5 Mbbl/d Associated Natural Gas Liquids 13.8 Mboepd 2.1 Mbbl/d Light and Medium Crude 10.2 Mbbl/d Heavy Crude 5.6 MMcf/dNatural Gas 0.5 Mbbl/d Associated Natural Gas Liquids Guidance - Egypt 11.3 Mbopd 0.9 Mbbl/d Light and Medium Crude 10.4 Mbbl/d Heavy Crude 12.1 Mbopd 1.0 Mbbl/d Light and Medium Crude 11.1 Mbbl/d Heavy Crude Guidance - Canada 2.0 Mboepd 0.7 Mbbl/d Light and Medium Crude 5.1 MMcf/dNatural Gas 0.5 Mbbl/d Associated Natural Gas Liquids 2.2 Mboepd 0.7 Mbbl/d Light and Medium Crude 5.6 MMcf/dNatural Gas 0.5 Mbbl/d Associated Natural Gas Liquids

CAUTIONARY STATEMENTS

CAUTIONARY STATEMENTS

Slide 41

Forward-Looking Information and Statements

• Certain statements included in this presentation constitute forward-looking statements or forward-looking information under applicable securities legislation. Such forward-looking statements or information are provided for the

purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Forward-looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "may", "will", "would" or similar words suggesting future outcomes or statements regarding an

• utlook. In particular, forward-looking information and statements contained in presentation include, but are not limited to, statements relating to "reserves" which are, by their nature, forward-looking statements, as they involve the

implied assessment, based on certain estimates and assumptions that the reserves or resources, as applicable, described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future; expected production amounts and decline rates in the future; the expected product types and quantities of such product types; the plans for the Company's 2020 Canadian drilling program and the details thereof; the Company's expectation relating to the performance of the South Harmattan Cardium prospect; and other matters. The recovery and reserve estimates of TransGlobe's reserves provided in this presentation are estimates only and there is no guarantee that the estimated reserves will be recovered.

• Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. 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 because the Company can give no assurance that such expectations will prove to be correct. Many factors could cause TransGlobe's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, TransGlobe.

• In addition to other factors and assumptions which may be identified in this presentation, assumptions have been made regarding, among other things, anticipated production results, volumes and decline rates; the timing of drilling

wells and mobilizing drilling rigs; the number of wells to be drilled; 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; the geography of the areas in which the Company is conducting exploration and development activities; current commodity prices and royalty regimes; availability of skilled labour; future exchange rates; the price of oil; the impact of increasing competition; conditions in general economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; future operating costs; uninterrupted access to areas of TransGlobe's operations and infrastructure; recoverability of reserves and future production rates; that TransGlobe will have sufficient cash flow, debt or equity sources or other financial resources required to fund its capital and operating expenditures and requirements as needed; that TransGlobe's conduct and results of operations will be consistent with its expectations; that TransGlobe will have the ability to develop its properties in the manner currently contemplated; current or, where applicable, proposed industry conditions, laws and regulations will continue in effect or as anticipated as described in this presentation; that the estimates of TransGlobe's reserves and resource volumes and the assumptions related thereto (including commodity prices and development costs) are accurate in all material respects; and other matters.

• Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by

the Company and described in the forward-looking statements or information. These risks and uncertainties which may cause actual results to differ materially from the forward-looking statements or information include, among other things, operating and/or drilling costs are higher than anticipated; 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 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; competition; lack of availability of qualified personnel; the results of exploration and development drilling and related activities; obtaining required approvals of regulatory authorities; fluctuations in foreign exchange or interest rates; environmental risks; ability to access sufficient capital from internal and external sources; failure to negotiate the terms of contracts with counterparties; failure of counterparties to perform under the terms of their contracts; and other factors beyond the Company's control. Readers are cautioned that the foregoing list of factors is not exhaustive. 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.

• The forward-looking statements or information contained in this presentation are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information,

whether as a result of new information, future events or otherwise unless required by applicable securities laws. The forward-looking statements or information contained in this presentation are expressly qualified by this cautionary statement.

TransGlobe Energy | Corporate Presentation | June 2020

CAUTIONARY STATEMENTS

Slide 42

Financial Outlook

• This document also contains financial outlook within the meaning of applicable securities laws, including but not limited to the information regarding future capital expenditures, estimated finding and development costs,

netbacks, recycle ratio, payout, internal rates of return, and net present value. The financial outlook has been prepared by TransGlobe's management to provide an outlook of the Company's activities and results. The financial

• utlook has been prepared based on a number of assumptions including those set forth below in this presentation, the assumptions discussed above and assumptions with respect to the costs and expenditures to be incurred by

the Company, capital equipment and operating costs, foreign exchange rates, taxation rates for the Company, general and administrative expenses and the prices to be paid for the Company's production. Management does not have firm commitments for all of the costs, expenditures, prices or other financial assumptions used to prepare the financial outlook or assurance that such operating results will be achieved and, accordingly, the complete financial effects of all of those costs, expenditures, prices and operating results are not objectively determinable. The actual results of operations of the Company and the resulting financial results will likely vary from the amounts set forth in the analysis presented in this presentation, and such variation may be material. The Company and its management believe that the financial outlook has been prepared on a reasonable basis, reflecting the best estimates and judgments, and represent, to the best of management's knowledge and opinion, TransGlobe's expected expenditures and results of operations. However, because this information is highly subjective and subject to numerous risks including the risks discussed above, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, TransGlobe undertakes no obligation to update such financial outlook and forward-looking statements and information. See "Economic Assumptions" below for a description of the key assumptions underlying the calculation of certain financial outlook disclosed in this presentation.

TransGlobe Energy | Corporate Presentation | June 2020

CAUTIONARY STATEMENTS

Slide 43 Oil and Gas Information

• Mr. Ron Hornseth, B.Sc., General Manager – Canada for TransGlobe Energy Corporation, and a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, June 2009, of the London Stock Exchange, has

reviewed and approved the technical information contained in this report. Mr. Hornseth is a professional engineer who obtained a Bachelor of Science in Mechanical Engineering from the University of Alberta. He is a member of the Association of Professional Engineers and Geoscientists of Alberta (“APEGA”) and the Society of Petroleum Engineers (“SPE”) and has over 20 years’ experience in oil and gas.

• Reserves. The estimates of TransGlobe's December 31, 2019 reserves set forth in this presentation have been prepared by GLJ Petroleum Consultants ("GLJ"), an independent qualified reserves evaluator, as of December 31, 2019

in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the Canadian Oil and Gas Evaluations Handbook (the "COGE Handbook" or "COGEH") and using GLJ's forecast prices and costs as at December 31, 2018. See TransGlobe's news release dated February 5, 2020 entitled "TransGlobe Energy Corporation Announces its 2020 Capital Budget and 2019 Year-End Reserves" available at www.trans- globe.com/news for more details concerning the reserves set forth in this presentation.

• Estimates of the net present value of the future net revenue from TransGlobe's reserves do not represent the fair market value of such reserves. The estimates of reserves and future net revenue from individual properties or

wells may not reflect the same confidence level as estimates of reserves and future net revenue for all properties and wells, due to the effects of aggregation. In this presentation, NPV10 represents the net present value of net income discounted at 10%. The NPV estimates are net estimates and are prepared prior to any provision for interest costs or general and administrative costs and after the deduction of royalties, development costs, production costs, well abandonment costs and estimated future capital expenditures for wells to which reserves have been assigned.

• The recovery and reserve estimates of reserves provided in presentation are estimates only, and there is no guarantee that the estimated reserves will be recovered. Actual reserves may eventually prove to be greater than, or

less than, the estimates provided in this presentation.

• Oil and gas metrics. This presentation contains certain oil and gas metrics, including F&D, netback, recycle ratio, payout, and internal rates of return ("IRR"), which do not have standardized meanings or standard methods of
• calculation. Therefore such measures may not be comparable to similar measures used by other companies and should not be used to make comparisons. Such metrics have been calculated by the Company and included in this

presentation to provide readers with additional measures to evaluate the Company's performance; however, such measures are not reliable indicators of the future performance and future performance may not compare to the performance in previous periods and therefore such metrics should not be unduly relied upon. The following describes the method used to determine the metric and explains the meaning of the metric:

• "Finding and development costs" or "F&D costs" are calculated by dividing the sum of the capital expenditures for the year (in dollars) by the additions to reserves within the applicable reserves category.
• Netback is a measure of operating results and is calculated as sales net of royalties, operating expenses, current taxes and selling costs. 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.

• Recycle ratio is calculated by dividing the netback by the proved and proved plus probable finding and development costs on a per bbl basis.
• Payout is calculated as the period of time by which all costs of drilling, completions, and tie-in for a well or wells have been recovered from the sale of production (net of operating costs and royalties) from a well or wells.
• IRR is calculated as the discount factor applied to future cash flows at which the NPV is calculated to be zero.
• See "Economic Assumptions" below for a description of the key assumptions underlying the calculation of certain oil and gas metrics disclosed in this presentation.

TransGlobe Energy | Corporate Presentation | June 2020

CAUTIONARY STATEMENTS

Slide 44

• Analogous information. Certain information in presentation may constitute "analogous information" as defined in NI 51-101. Such information includes production estimates, drilling results, test rates, reserves estimates and other

information retrieved from publically available information relating to certain industry participants, including AccuMap and other publically available sources. Management of TransGlobe believes the information is relevant as it may help to define the reservoir characteristics and production profile of lands in which TransGlobe may hold an interest. TransGlobe is unable to confirm that the analogous information was prepared by a qualified reserves evaluator or auditor and is unable to confirm that the analogous information was prepared in accordance with NI 51-101. Such information is not an estimate of the production, reserves or resources attributable to lands held or to be held by TransGlobe and there is no certainty that the production, reserves or resources data and economic information for the lands held or to be held by TransGlobe will be similar to the information presented in this presentation. The reader is cautioned that the data relied upon by TransGlobe may be in error and/or may not be analogous to such lands held or to be held by TransGlobe.

• Production results. References in this presentation to production results over a 30 and 60 day period are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will

commence production and decline thereafter and are not indicative of long term performance or of ultimate recovery. Readers are cautioned not to place reliance on such rates in calculating the aggregate production for TransGlobe or any of its wells. A pressure transient analysis or well-test interpretation has not been carried out in respect of the highlighted well. Accordingly, TransGlobe cautions that the production results for the highlighted well should be considered to be preliminary.

• Third party sources. Certain other information contained in this presentation has been prepared by third-party sources, including the Canadian Energy Weekly published by Canaccord Genuity on February 3, 2020. Such information has

not been independently audited or verified by TransGlobe. No representation or warranty, express or implied, is made by TransGlobe as to the accuracy or completeness of the information contained in that publication, and nothing contained in this presentation is, or shall be relied upon as, a promise or representation by TransGlobe as to the accuracy or completeness of that information.

• Drilling locations. This presentation discloses drilling locations that have associated proved and/or probable reserves based on GLJ's 12/31/2019 evaluation prepared in accordance with NI 51-101 and the COGE Handbook and using GLJ

pricing forecasts as at 12/31/2019. Nineteen (one-mile equivalents) of the drilling locations have been assigned proved reserves and 8.5 (one-mile equivalents) of the drilling locations have been assigned probable reserves by GLJ in the

• evaluation. The remainder of the drilling locations disclosed in this presentation are unbooked locations located on the Company's leases which are internal estimates based on an assumption as to the number of wells that potentially

could be drilled per section based on industry practice and internal review. Unbooked locations do not have attributed reserves or resources. Unbooked locations have been identified by management as an estimation of the Company's potential future drilling activities based on an evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that the Company will drill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves, resources or production. The drilling locations on which the Company will actually drill wells is ultimately dependent upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been derisked by drilling existing wells in relative close proximity to such unbooked drilling locations, the majority of other unbooked drilling locations are farther away from existing wells where management has less information about the characteristics

• f the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves, resources or production. The

unbooked drilling location disclosure contained in this presentation was prepared in accordance with COGEH by a non-independent qualified reserves evaluator as defined in NI 51-101.

TransGlobe Energy | Corporate Presentation | June 2020

CAUTIONARY STATEMENTS

Slide 45

• Type curves. TransGlobe has presented certain type curves and well economics for the Harmattan area type wells and the Company's South Harmattan 2-20 well. The type curves are TransGlobe's internally prepared estimates of the

production decline and ultimate volumes expected to be recovered from wells over the life of the well. The type curves presented are based on production history from analogous Cardium developments located in close proximity to the Harmattan area and the Company's South Harmattan 2-20 well. Individual wells may be higher or lower but over a larger number of wells, TransGlobe expects the average to come out to the type curve. Over time type curves can and will change based on achieving more production history on older wells or more recent completion information on newer wells. The type curve disclosure contained in this presentation was prepared in accordance with COGEH by a non- independent qualified reserves evaluator as defined in NI 51-101. The following sets out the key inputs underlying the type curves and well economics on slide 29: Type Curve Inputs 1-Mile Type Well 2-Mile Type Well Drill, complete, equip, and tie-in capital (US$MM) 2.0 3.1 EUR (Raw gas) (Bcf) 0.4 0.8 EUR (MMBoe) 0.2 0.4 Opex ($/boe) 5.35 5.24 Hz length (m) 1,500 3,100 Frac intensity (T/m) 0.4 0.4

• Economic assumptions. The following sets out the key assumptions underlying the calculation of certain financial outlook and oil and gas metrics disclosed in this presentation:

‒ Oil price forecast is April 27th WTI Strip ($35.21 USD/BBL in 2021) with a -$ 1USD/BBL differential to Edmonton Light ‒ Gas price forecast is $1.68 USD/GJ flat ‒ Royalties as per the Alberta Modernized Royalty Framework (5% until revenue reaches C*) ‒ Operating costs of $968 USD/well*month, $5.58 USD/bbl oil, $0.76 USD/Mcf gas

TransGlobe Energy | Corporate Presentation | June 2020

CAUTIONARY STATEMENTS

Slide 46

bbls barrels Mbbl thousand barrels MMbbl million barrels Mbbl/d thousand barrels per day boe barrels of oil equivalent of natural gas, on the basis of one barrel of oil or NGLs for six thousand cubic feet of natural gas boed Barrels of oil equivalent per day Mboepd thousand barrels of oil equivalent per day MMboe million barrels of oil equivalent Bopd barrels of oil per day Mbopd thousand barrels of oil per day Mcf/d thousand cubic feet per day MMcf/d million cubic feet per day Bcf billion cubic feet NGL Natural Gas Liquids MM million

Certain Defined Terms

• Product types. All of TransGlobe's reserves disclosed in this presentation are heavy crude oil, medium crude oil, light crude oil, conventional natural gas or natural gas liquids. Light crude oil is crude oil with a relative density greater

than 31.1 degrees API gravity, medium crude oil is crude oil with a relative density greater than 22.3 degrees API gravity and less than or equal to 31.1 degrees API gravity, and heavy crude oil is crude oil with a relative density greater than 10 degrees API gravity and less than or equal to 22.3 degrees API gravity. Conventional natural gas means natural gas that has been generated elsewhere and has migrated as a result of hydrodynamic forces and is trapped in discrete accumulations by seals that may be formed by localized structural, depositional or erosional geological features. Natural gas liquids means those hydrocarbon components that can be recovered from natural gas as a liquid, including ethane, propane, butanes, pentanes plus, and condensates.

• "Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.
• "Probable" reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated

proved plus probable reserves.

• "Possible" reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the actual remaining quantities recovered will equal or exceed the sum of the estimated

proved + probable + possible reserves.

• "Gross Reserves" are the Company's working interest (operating and non-operating) share before deduction of royalties and without including any royalty interests of the Company.
• "Developed" reserves are those reserves that are expected to be recovered from existing wells and installed facilities or, if facilities have not been installed, that would involve a low expenditure (e.g. when compared to the cost of

drilling a well) to put the reserves on production.

• "Developed Producing" reserves are those reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing or, if shut-in, they must have previously

been on production, and the date of resumption or production must be known with reasonable certainty.

• "Developed Non-Producing" reserves are those reserves that either have not been on production, or have previously been on production, but are shut-in, and the date of resumption is unknown.
• "Undeveloped" reserves are those reserves expected to be recovered from known accumulations where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable of
• production. They must fully meet the requirements of the reserves classifications (proved, probable, possible) to which they are assigned.
• The following abbreviations used in this presentation have the meanings set forth below:

"BOEs" may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 mcf: 1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

TransGlobe Energy | Corporate Presentation | June 2020

For additional information contact us at:

Phone: +1 (403) 264 9888 Email: investor.relations@trans-globe.com www.trans-globe.com