Corporate Presentation August 2019 AIM & TSX:TGL NASDAQ:TGA - PowerPoint PPT Presentation

Corporate Presentation August 2019 AIM & TSX:TGL NASDAQ:TGA

Cautionary Statement The information provided in this presentation is provided as of August 12, 2019 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 approved or disapproved by any securities commission or regulatory authority in Canada, the United States, the United Kingdom or any other jurisdiction, and TransGlobe expressly disclaims any duty to make disclosure or any filings with any securities commission or regulatory authority, beyond that imposed by applicable laws. See "Cautionary Statements" beginning on slide 21 for other important disclosures regarding forward looking information, future orientated financial information 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. 2

Overview Focused on building a profitable and growth oriented international portfolio Strong balance sheet and funds flow generation Funds Flow for the three and six months ended 6/30/19 of $19.1 MM and $34.3 MM Dividend payer $0.035/share paid in April 2019; $0.035/share to be paid September 2019; targeting semi‐annual payments Established operated production in Egypt and Canada Increased FY 2019 production guidance to 15.0‐16.0 Mboepd* from 14.0 to 15.0 Mboepd Strong position to grow in Egypt and surrounding region Management team actively seeking acquisition opportunities Growth underpinned by resource base Gross 2P reserves of 44.1 MMboe* 1 Significant operational experience Founded 20+ years ago * See Cautionary Statements – "Forward‐Looking Information and Statements“ and “Oil and Gas Information” 3 1. Based on GLJ evaluations effective and 12/31/18.

Valuation Upside ‐ Strong Production and Cash Flow From Existing Asset Base * 16,940 boepd Production (Q2) $19.1 MM Q2 Funds Flow Ended 6/30/19 $107.4 MM Market Capitalization $69.9 MM Enterprise Value Enterprise Value Estimate ($ MM) Shares Outstanding (08/12/19) ~72.5 $0.035/share Market Capitalization (08/12/19) ‐ $1.48/share $107.4 Dividend declared August 12, 2019 to Debt (6/30/19) (Prepay Agreement + Canadian RBL) 1 $48.1 be paid September 13, 2019; Working Capital (6/30/19) 2 Excluding Crude Inventory $41.1 Targeting semi‐annual payments Estimated Market Value of Inventoried Crude Oil of ~0.7 MMbbls 3 (6/30/19) $44.5 Enterprise Value 4 * $69.9 $29.1 MM • $75MM Prepayment Agreement from Mercuria Energy Trading S.A. ($40MM drawn as Q2 oil cargo net proceeds at 6/30/19) • C$25MM Reserves‐based lending facility (C$11.5MM drawn as at 6/30/19) 1. Includes Prepay Agreement of $40MM and Canadian RBL of C$11.5 ($8.8MM) 4. Enterprise value calculated as Market Capitalization + Long term debt – Working capital (Current Assets 4 2. Current Assets (including cash and cash equivalents) minus Current Liabilities, excludes inventoried crude oil (excluding book value of crude inventory)‐ Current Liabilities) – Market Value of Inventoried crude oil 3. Estimated value of inventoried crude oil is based on average realized price of Gharib blend for Q2 sales and * See Cautionary Statements – "Forward‐Looking Statements and Information" inventoried crude oil as at 6/30/19

2019 Capital Program* TransGlobe Net Operational Capital ($MM) WI Well Count Concession Development Exploration (Wells) Wells Other Wells Other Total Dev Expl Total West Gharib ‐ 3.4 ‐ ‐ 3.4 ‐ ‐ ‐ West Bakr 3.4 10.1 1.1 ‐ 14.6 3 1 4 NW Gharib 1.0 0.6 1.0 ‐ 2.6 1 1 2 South Ghazalat ‐ ‐ 1.2 2.3 3.5 ‐ 1 1 Egypt 4.4 14.1 3.3 2.3 24.1 4 3 7 Canada 6.3 0.5 3.2 ‐ 10.0 3 1 4 2019 Operations Total $10.7 $14.6 $6.5 $2.3 $34.1 7 4 11 The Company’s capital budget is financed from cash flows from operations and split 75:25 ‐ Development:Exploration Egypt • Eastern Desert: • 1 exploration well drilled (oil producer), a second one awaiting completion • 4 development wells drilled, one for water injection • In Western Desert, appraise/develop the SGZ‐6X light oil discovery in South Ghazalat Canada Maintain/grow Canadian light oil production and test acquired lands for commerciality * See Cautionary Statements – "Forward‐Looking Information and Statements" 5

Year‐end Reserves Summary 1,2,3,4 * 2018 YE Reserves Summary (MMboe) 1P 2P 3P Canada 11.0 18.4 24.8 Egypt 15.9 25.7 37.0 Total Company (MMboe) 26.9 44.1 61.8 Total Company NPV @ Dec 31/18 NPV 10% Before tax $MM Dec 31/18 $231 $339 $446 NPV 10% After tax $MM Dec 31/18 $227 $323 $421 1. Based on GLJ evaluation effective 12/31/18. See Cautionary Statements – "Oil and Gas Information“ 4. NPV’s GLJ evaluation effective 12/31/2018 forecast pricing 2. Reserves are Gross working interest reserves before royalties. * 6 Mcf = 1 Boe 6 3. Tables may not total due to rounding

Health, Safety, Environment & Social Responsibility Performance HSES is a fundamental component of how TransGlobe operates 2013‐2018 Road Traffic Accidents (“RTA”) 2013‐2018 Total Recordable Cases (“TRC”) 2013‐2018 RTA's 1 2013‐2018 TRC's 1 25 30 21 25 19 20 25 19 20 14 15 16 16 11 15 12 10 10 6 7 4 5 5 0 0 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 ‐ TGL implemented a formal HSES management system in 2014 ‐ TGL formed an independent HSE board committee in 2015 ‐ TGL has made significant progress on several HSES key performance indicators ‐ Canadian operations have been incident free since acquisition in 2016 1. HSES Statistics as at Q1 2019 7

Egyptian Asset Portfolio

A Unique Position in Egypt* Focused on extracting maximum potential from known reservoirs and leveraging position Best‐in‐class operator in Egypt with 15 years in country Strong relationship with government 100% working interest and operator Ability to market 100% of it’s Eastern Desert entitlement crude Very low government receivables Poised for organic growth via infill drilling and exploration Well positioned to expand through acquisitions * See Cautionary Statements – "Forward‐Looking Information and Statements" 9

TransGlobe Egypt – 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 in NW Gharib single new concession in 2019* • Subject to approval by Egyptian authorities NW Gharib • Western Desert W Gharib • South Ghazalat development lease approved* for SGZ‐6X discovery (2018) • 1 st oil planned for Q4 2019 • South Alamein exploration lease relinquished in Q2 Mediterranean W Gharib Nile River Sea NW Gharib Delta W Gharib South Ghazalat (Development) W Bakr Cairo Western Desert Eastern Desert Eastern Desert Development N Concession Leases Eastern Desert West Gharib 5 Concessions Northwest Gharib 4 100 km (Development) West Bakr 2 * See Cautionary Statements – "Forward‐Looking Information and Statements" 10

Eastern Desert: Three 100% WI Concessions* Eastern Desert acquisitions (2007 & 2011) are a template for the Company’s future strategy: • Older fields, large resource, unloved by prior Exploration Well owners • Rigorous technical work, capital discipline and NWG‐38A pool appraisal transfer of emerging western oil field technologies • Drilled over 250 wells in past 10+ years Production: • 2019 guidance increased to 12.95 ‐ 13.75 Mbopd Exploration Discovery HW‐2X (13.35 Mbopd mid point)* • 2019 averaging ~ 14.2 Mbopd (YTD July 31st) Infill drilling and workovers/ optimization Reserves: • 1P – 15.9 MMbbl¹ at Dec 31, 2018 • 2P – 25.7 MMbbl¹ at Dec 31, 2018 Beyond 2019 • Post concession consolidation, advance primary, secondary and tertiary development programs to increase recoveries and production* 1. Based on GLJ evaluations effective 12/31/18 11 * See Cautionary Statements – "Forward‐Looking Information and Statements“ and “Oil and Gas Information”