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

2020 CORPORATE PRESENTATION AN AGILE RESPONSE TO A CHALLENGING MARKET June 2020 AIM & TSX: TGL NASDAQ: TGA www.trans-globe.com

CAUTIONARY STATEMENT 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 or 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. TransGlobe Energy | Corporate Presentation | June 2020 Slide 2

SHORT TERM PRIORITIES TransGlobe has responded to the unprecedented macro environment • 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 Energy | Corporate Presentation | June 2020 Slide 3

OVERVIEW 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 100% control of capital program Agile response to oil price volatility with capital flexibility and high degree of investment discretion 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 Capital preservation balances against track record of returning value to shareholders $0.035/share dividend paid in April & September 2019 – currently suspended See Cautionary Statements – "Forward- Looking Statements and Information“ and “Oil and Gas Information” Refer to Slide Notes TransGlobe Energy | Corporate Presentation | June 2020 Slide 4

TRANSGLOBE LONG TERM PRIORITIES TransGlobe maintains four key priorities in long- term planning Returning • Operational Sustainability: Prudently manage reserve Operational Value to and resource base to provide production and cash flow Sustainability over the long-term Shareholders • Returning Value to Shareholders: Contrast internal opportunities for capital deployment with opportunities to return cash to shareholders – focus is creating shareholder value • Energy Transition: Managing strategies and workforce for TransGlobe to utilize new technologies and Energy ESG renewables that can more efficiently convert reserves Transition into production • ESG: Cognizant of environmental, social, and governance impacts in all company activities, with overarching focus on safety of all employees TransGlobe Energy | Corporate Presentation | June 2020 Slide 5

CORPORATE OVERVIEW STRONG PRODUCTION AND CASH FLOW PROVIDES VALUATION UPSIDE Enterprise Value Estimate ($ MM) 2020E Guidance 15.0 Mboepd 2020E Production Guidance (boepd) Sha hares Out Outst stand nding g (5/31/ /31/20) 0) – MM sha hares es ~72.5 Q1-2020 Production Actuals Forecast Mark rket Capitalization on (5/31 /31/20 /20) - $0.53 53/s /share $38.4 15,000 Debt (03/31 3/31/20 /20) (Pre Prepay y Agree greement nt + Canadi dian RB RBL) $36.6 45.3 MMboe Working Work g Capi pital (03/31 3/31/20 /20)Excl clud uding g Crud rude e Invent nventory $47.1 10,000 2P Reserves 12/31/19 Est. Marke ket Value of Crude e Invent nventory (~0. 0.2 MMbbl bls- 03/31/20 ) $9.8 5,000 Ent nter erpri rise e Value $18.4 $51.6 MM - Q1-2020 Net Sales Proceeds TransGlobe Energy Corporation Production Q1- Q2 Q3 Q4 20 20 18 2020E Capital Spending Guidance, US$MM $25.7 MM 16 5 Production (Mboepd) Q1-2020 Funds Flow 14 4 12 10 $38.4 MM 3 8 Market Capitalization 6 2 4 1 2 $18.4 MM 0 0 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Enterprise Value Q1 Q2 Q3 Q4 West Gharib West Bakr NW Gharib South Ghazalat Canada Egypt Canada See Cautionary Statements – "Forward- Looking Statements and Information“ and “Oil and Gas Information” Refer to Slide Notes TransGlobe Energy | Corporate Presentation | June 2020 Slide 6

MACRO VIEW: EGYPT Macro Statistics • Oil Reserves: 3 billion barrels Cairo • Oil Production (2018): ~0.7 MMbbl/d EGYPT • 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 Major Oil Producers in Egypt (2018) 354 Gross Production (Mboepd) 113 88 49 14 ENI Apache Shell BP TGL Refer to Slide Notes TransGlobe Energy | Corporate Presentation | June 2020 Slide 7

MACRO VIEW: CANADA 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 CANADA • Advanced energy industry ‒ Highly educated oil and gas workforce ALBERTA ‒ Highly developed transportation infrastructure ‒ Capable service sector with significant availability of drilling/completion expertise Calgary Major Oil Producers in Canada (2018) 1,025 Gross Production (Mboepd) 730 452 UNITED STATES 398 2 CNRL Suncor Cenovus Imperial Oil TGL Refer to Slide Notes TransGlobe Energy | Corporate Presentation | June 2020 Slide 8

OPERATIONAL SUSTAINABILITY TransGlobe strategically manages production as it invests in its future Contingent Resource • Prudently managing operations to achieve highest potential over asset lifetime • Utilizing technology and extraction best practices, 3P Reserves TransGlobe achieves maximum value from existing assets ‒ TransGlobe’s world class team has delivered consistent results ‒ Egyptian assets’ production has increased >30 years post 2P Reserves 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 1P Reserves resource • Proven ability to maintain resource base and production allows any asset acquisition/expansion to Production focus on expanding resource access & Cashflow TransGlobe Energy | Corporate Presentation | June 2020 Slide 9

OPERATIONAL SUSTAINABILITY: MAINTAINING RESERVE BASE Reserve Continuity 60 18 Reserves remain flat with conservative investment 16 50 • TransGlobe has maintained 2P reserve levels since 14 2017 through effective resource maturation 2P Reserves (MMboe) Production (Mboepd) 40 12 • Reserves maturity management enables consistent 10 production levels to be maintained over the long term 30 8 • Replaced 2P reserves for ~$9 per boe 20 6 ‒ Have invested $116mm of capital since 2017 4 10 • Continue to maximize value from mature assets 2 0 0 2017 2018 2019 Canada Egypt Production Refer to Slide Notes TransGlobe Energy | Corporate Presentation | June 2020 Slide 10

RETURNING VALUE TO SHAREHOLDERS CASHFLOW PRIORITIES TransGlobe is focused on shareholder value creation, while minimizing balance sheet risk Internal Share Acquisitions Dividends Opportunities Buybacks • Balanced approach • Prudently weigh capital deployment opportunities against near-term monetization • Continually maturing the portfolio to provide attractive investment opportunities TransGlobe Energy | Corporate Presentation | June 2020 Slide 11