TRANSGLOBE ENERGY AGM PRESENTATION MAY 11, 2017 TSX:TGL/NASDAQ:TGA - PowerPoint PPT Presentation

TRANSGLOBE ENERGY AGM PRESENTATION MAY 11, 2017 TSX:TGL/NASDAQ:TGA

CAUTIONARY STATEMENT The information provided in this presentation is provided as of January 31, 2017 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" 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 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 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. 2

2016 FINANCIAL HIGHLIGHTS • Production down 17% Vs 7% sales volume Change 2016 2015 % decrease Production and Sales (1) • 30% lower oil prices in Egypt and a 0.3 million bbl Egypt Oil Sold 11,075 11,935 -7% Bpd Egypt Oil Produced 12,015 14,466 -17% Bpd build in inventoried entitlement crude oil Canada Oil 18 n/a n/a Bpd Natural Gas 230 n/a n/a negatively impacted revenue Mcfd NGLs 34 n/a n/a Bpd • Sold three full cargos and one partial cargo Revenue Egypt Oil $30.03 $42.94 -30% $/Bbl of entitlement oil in 2016 Canada Oil $40.38 n/a n/a $/Bbl • Continued focus on cutting costs led to decreased Natural Gas $1.81 n/a n/a $/Mcf NGLs $17.20 n/a n/a $/Bbl opex and G&A costs on a gross and per barrel Operating and Selling Expenses Gross $41.2 $52.6 -22% basis $MM Egypt Sales $10.10 $12.08 -16% $/Bbl • Developed a strategy to repay the convertible Canada Sales $8.14 n/a n/a $/Boe (2) G&A Expenses debenture (03/31/17) without dilution and at a Gross $17.6 $21.3 -18% $MM Per Barrel $4.29 $4.88 -12% reasonable cost $/Bbl Egypt Crude Oil Inventory • Acquired ~3,000 Boepd* (~57% oil and NGLs) in Ending Balance 1.27 0.92 37% MMBbls Equivalent Months (3) 7.1 4.9 45% Months Canada for ~$60 million, which have now been Funds Flow from Operations -$8.4 -$8.9 fully integrated $MM Net Income -$87.7 -$105.6 $MM • Disappointing exploration results in both SE and SW Gharib resulted in a $33.4 million investment (1) Oil production, revenues and expenses from Yemen in 2015 are excluded (2) Mcf converted at a ratio of 6:1 for purposes of calculating Boe write-down, contributing to a total loss of $87.7 (3) Months production is calculated based on last month in period. million * 6 Mcf to 1 Boe 3

2017 Q1 FINANCIAL HIGHLIGHTS • Sales volumes averaged 13,826 boepd* and Change Q1 '17 Q1 '16 % production volumes averaged 16,731 boepd* Production and Sales Egypt Oil Sold 11,044 14,126 -22% Bpd • Inventoried entitlement oil increased ~0.3 MM Egypt Oil Produced 13,948 12,058 16% Bpd Canada Oil 566 n/a n/a Bbls to 1.5 MM Bbls from year-end Bpd Natural Gas 7,075 n/a n/a Mcfd • Produced 567,032 Bbls of entitlement oil NGLs 1,037 n/a n/a Bpd Revenue in Egypt and sold 303,817 Bbls Egypt Oil $41.29 $22.58 83% $/Bbl Canada Oil $48.82 n/a n/a • $/Bbl Egypt oil sales averaged $41.82/Bbl – up Natural Gas $1.96 n/a n/a $/Mcf NGLs $19.08 n/a n/a from an average of $30.03/Bbl in 2016 $/Bbl Operating Expenses • Funds flow from operations of $2.5 million Egypt $8.60 $10.21 -16% $/Bbl Canada (1) $7.09 n/a n/a $/Boe (2) ($0.03/share), G&A Expenses • Gross $4.4 $3.5 26% Net loss of $12.9 million (-$0.18/share), $MM Sold Boe $3.57 $2.74 30% $/Boe • Achieved an operating expense of $8.60/Bbl in Produced Boe $2.95 $3.25 -9% $/Boe Egypt Crude Oil Inventory Egypt – a decrease of 16% over Q1 of 2016, Ending Balance 1.53 0.73 108% MMBbls Equivalent Months (3) 8.0 4.3 86% • Ended quarter with $37.8 million in cash and Months cash equivalents (includes restricted cash) and Funds Flow from Operations $2.5 -$2.8 $MM Net Income -$12.9 -$16.2 $MM $42.7 million in working capital • (1) Includes transportation costs Spent $10.7 million on capital expenditures. (2) Mcf converted at a ratio of 6:1 for purposes of calculating Boe (3) Months production is calculated based on last month in period. * 6 Mcf to 1 Boe 4

2017 KEY FINANCIAL FOCUS AREAS AND GUIDANCE • Capital Budget of up to $56 million • Production target of 15,500 to 18,500 Boepd* – an increase of up to ~50% over 2016 • Continued focus on increasing frequency of selling our entitlement barrels in Egypt • Three cargo liftings currently scheduled (June, September and December) • Since January TG has also been making monthly sales of ~100,000 bbls to EGPC to provide funding for Egypt based expenditures • Currently expect inventory to decrease by year end from 12/31/16 • Entered into Prepayment and Marketing agreements with Mercuria Energy Trading S.A. • Prepayment provided funding to repay the Convertible Debenture • Barrels marketed will receive current market pricing – marketer incented to deliver best pricing to increase marketing fee * 6 Mcf to 1 Boe 5

2017 OPERATIONAL PLAN 1 Firm Firm & Contingent (Contingent on commodity prices, cargo sales & drilling results) 2017 Capital $MM Canada $9.4 $16.2 Egypt $25.8 $40.2 Total $35.2 $56.4 Wells Canada 4 8 Egypt 9 18 Total 13 26 EGYPT  Completed Eastern Desert Exploration program – Q1 Acquired 600 Km 2 of 3D seismic at NW Sitra in Western Desert – Q1  • Appraise/Develop 2016 discoveries adjacent to NWG 3/38 development lease (NWG 3/38 development lease approved December 2016 with first production prior to YE-2016 @ 1,000 Bopd from NWG 3) – Q1/Q2 • Re-entry and test of Boraq 2 discovery and drill offset appraisal well evaluating Boraq ridge in South Alamein – Q2 • West Bakr and West Gharib optimization and infill/ development drilling opportunities - 2017 CANADA  Integration and optimization of Harmattan operations – Q1 • Execute 2H-2017 Cardium oil drilling program consisting of 4 to 8 horizontal (multi-stage frac) wells - Q3/Q4 • Develop multi-year development plans representing stable and predictable production growth 1. See Cautionary Statements – "Forward – Looking Information and Statements" and "FOFI and Other Financial Measures". 6

DAILY PRODUCTION 1 2017 TRANSGLOBE TOTAL DAILY 20,000 Production (boepd) 15,000 10,000 Canada 5,000 NWG West Bakr West Gharib 0 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 2017 GUIDANCE 1 Q1-2017 APRIL 2017 Egypt 13,941 Bopd 14,269 Bopd ~13.0 – 15.5 MBopd Canada 2,731* Boepd 2,670* Boepd ~2.5 – 3.0 MBoepd Total Company 16,671* Boepd 16,939* Boepd ~15.5 – 18.5 MBoepd * 6 Mcf to 1 Boe 1. See Cautionary Statements – "Forward-Looking Information and Statements" and "Oil and Gas Information". 7

2016 YEAR-END RESERVES SUMMARY 1 2016 Reserves Summary 1P 2P 3P Total proved plus probable (“2P”) gross reserves increased 74% from year-end 2015 Year End Reserves (MMbbl) 17.5 28.7 39.9 2015 to 50.0 MMboe noting the following: 2016 Adds/Revisions 5.1 5.0 4.6 • Canadian acquisition added 20.7 Canadian Acquisition (MMBoe) 11.7 20.7 25.8 MMboe of gross 2P reserves net of production including 46 BCF 2P of 2016 Production (4.4) conventional natural gas 2 2016 Year End Reserves (MMBoe) 29.9 50.0 65.9 • Positive technical additions of 5.0 Change vs Year End 2015 (%) 71% 74% 65% MMbbls of gross 2P reserves primarily Production Replacement Ratio (%) – attributed to the Arta Red Bed pool 116% 114% 105% pre acquisition performance/simulation results and 70 performance at West Gharib, West 2015 Year End Reserves (mmbbl) Bakr 60 2016 Year End Reserves (mmbbl) • Replaced 114% of 2016 production 50 (~4.4 MMboe), pre Canadian 40 acquisition 30 • At year-end 2016, 2P reserves were comprised of 59% Egypt medium/ 20 heavy oil, 15% Canada conventional 10 natural gas, 16% Canada natural gas 0 liquids and 10% Canada light oil 1P 2P 3P Reserve Category 1. Based on D&M evaluations effective 12/31/15 and 12/31/16. See Cautionary Statements – "Oil and Gas Information". 8 2. 6:1 BOE – MCF.