---

EXHIBIT 8

EMPLOYMENT AGREEMENT

THIS AGREEMENTis made as of January 1, 2006.

BETWEEN:

TRANSGLOBE ENERGY CORPORATION
of #2500 -605  5thAvenue S.W.Calgary, Alberta T2P 3H5

(TransGlobe or the Corporation)

AND:

EDWARD BELLof 250
Douglasbank Mews, S.E. Calgary, Alberta T2Z 2K2

(Bell)

RECITALS:

|A. | Edward Bell is employed as Vice President Exploration.
      Mr. Bell has agreed to continue his appointment as the Vice President
      Exploration of the Corporation; and
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                             
|B. | The Board of Directors of TransGlobe (Board) has
      approved that appointment on the terms set out
below:                                                              

AGREEMENTS:

For good and valuable consideration, the receipt and
sufficiency of which each party acknowledges, the parties agree as follows:

|1   | APPOINTMENT                                                                                                                                                                                                                                                                                                                  
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                              
|1.1 | Beginning on January 1, 2006, TransGlobe will continue to
      employ Edward Bell as Vice President Exploration.                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                              
|1.2 | The appointment will continue until December 31, 2007
      unless extended or sooner terminated as provided in this
  agreement.                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                              
|2   | RESPONSIBILITIES                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                              
|2.1 | Bell will diligently and faithfully devote all of his
      working time and attention exclusively to the business of TransGlobe and
      to the performance of his duties and responsibilities to the utmost of his
      ability, and will at all times use his best efforts to promote the
      interests of TransGlobe.

---

|2.2       | Without first obtaining written permission
      from TransGlobe, Bell will not enter into the service of, be employed by,
      or otherwise engaged in any capacity by any person, firm or corporation
      other than TransGlobe.                                                                                                                                                                   
|--------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
|
|          |                                                                                                                                                                                                                                                                                                                                                                                                         
|2.3       | Bell will have the authority, subject always
      to the general and specific instructions and directions of the President
      and the Board of Directors of TransGlobe, to manage the business of TransGlobe,
      except in matters required by law to be done by the President or the Board
      of Directors or the shareholders.                                                              
|
|
|
|          |                                                                                                                                                                                                                                                                                                                                                                                                         
|2.4       | Bell will conform to all lawful direction
      of the Board and comply with the Articles and Bylaws of TransGlobe.                                                                                                                                                                                                                                                                                     
|
|          |                                                                                                                                                                                                                                                                                                                                                                                                         
|3         | FIDUCIARY DUTY                                                                                                                                                                                                                                                                                                                                                                                          
|          |                                                                                                                                                                                                                                                                                                                                                                                                         
|3.1       | Bell acknowledges that he has a fiduciary
      relationship with TransGlobe, whereby he has an absolute duty of trust and
      fidelity to TransGlobe, to act loyally and with the utmost good faith exclusively
      in the best interests of TransGlobe and to avoid any conflict of                                                                                                               
|
|
|interest. |                                                                                                                                                                                                                                                                                                                                                                                                         
|          |                                                                                                                                                                                                                                                                                                                                                                                                         
|3.2       | (a)                                                                                                                                                                                                                                                                                                                                                                                                     
|
|
|
|          |                                                                                                                                                                                                                                                                                                                                                                                                         
|          | (b)                                                                                                                                                                                                                                                                                                                                                                                                     
|
|
|
|
|
|          |                                                                                                                                                                                                                                                                                                                                                                                                         
|          | (c)                                                                                                                                                                                                                                                                                                                                                                                                     
|
|
|
|
|
|          |                                                                                                                                                                                                                                                                                                                                                                                                         
|3.3       | At the end of Bells employment with
      TransGlobe, he will immediately return to TransGlobe all documents, papers,
      materials and other property of or relating to the affairs of TransGlobe
      or any of its subsidiaries which may be in his possession or control.                                                                                                                       
|
|
|          |                                                                                                                                                                                                                                                                                                                                                                                                         
|4         | REMUNERATION                                                                                                                                                                                                                                                                                                                                                                                            
|          |                                                                                                                                                                                                                                                                                                                                                                                                         
|4.1       | From January 1, 2006 TransGlobe will pay
      to Bell an annual salary of $170,100 (Cdn.) Annual Base Salary
      which will be paid in equal monthly instalments in arrears of $14,175 each.
      Annual Base Salary will be reviewed annually by the Compensation Committee
      for the year 2007 to determine if an increase in the Annual Base salary
      will be recommended to the Board.
|
|
|
|

---

|5   | INSURANCE BENEFITS                                                                                                                                                                                                                                        
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                           
|5.1 | TransGlobe will enrol Bell in the medical and dental insurance programs presently in force for employees of TransGlobe.                                                                                                                                   
|    |                                                                                                                                                                                                                                                           
|5.2 | TransGlobe will pay all premium costs for the benefits described in Section 5.1.                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                           
|6   | VACATION                                                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                           
|6.1 | In addition to statutory holidays, TransGlobe will provide Bell with annual paid vacation of 25 working days each year, to be taken when he deems appropriate in consideration of TransGlobes operational requirements.                                  
|    |                                                                                                                                                                                                                                                           
|6.2 | If Bell does not use all of his vacation entitlement in a given year, he may accumulate it and use it in a subsequent year. If Bell has unused vacation entitlement to his credit when this Agreement is ended, he will be paid its
equivalent cash value.
|    |                                                                                                                                                                                                                                                           
|6.3 | TransGlobe may require Bell to use up unused vacation entitlement.                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                           
|7   | EXPENSES AND ALLOWANCES                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                           
|7.1 | TransGlobe will reimburse Bell for all reasonable expenses incurred by him in connection with TransGlobes business, in accordance with its applicable policies.                                                                                          
|    |                                                                                                                                                                                                                                                           
|7.2 | TransGlobe will pay for the cost of membership dues to a club intended for business purposes up to a maximum of $1,000 per year.                                                                                                                          
|    |                                                                                                                                                                                                                                                           
|7.3 | TransGlobe will, subject to insurability, secure and pay the premiums for a life insurance policy on Bells life in an amount of not less than one years salary in which Bells estate will be named as the
beneficiary.                                 
|    |                                                                                                                                                                                                                                                           
|7.4 | TransGlobe will pay Bell a parking allowance for one space in the Calgary down town area near the TransGlobe office location.                                                                                                                             
|    |                                                                                                                                                                                                                                                           
|8   | SHARE OPTIONS                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                           
|8.1 | In addition to the fixed compensation set out in Section 4, Bell is entitled to an option to purchase up to 246,000 common shares of TransGlobe.                                                                                                          
|    |                                                                                                                                                                                                                                                           
|8.2 | The exercise price of the optioned shares will be the market price calculated in accordance with the policies and rules of the Corporations stock option plan and is subject to the approval of the TSX.                                                 
|    |                                                                                                                                                                                                                                                           
|9   | BONUSES                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                           
|9.1 | TransGlobe may issue to Bell a performance bonus in such amount as may be determined by the Board of Directors of TransGlobe.                                                                                                                             

---

|10   | ENDING                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                               
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                               
|10.1 | TransGlobe may end this Agreement and Bells
      employment at any time for just cause, without any notice and without any
      liability to Bell.                                                                                                                                  
|
|     |                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                               
|10.2 | TransGlobe may end this Agreement and Bell's
      employment at any time without just cause by giving written notice to Bell.
      Upon giving such notice TransGlobe will pay to Bell a retiring allowance
      in an amount equal to 12 months of his then current monthly salary.
|
|
|
|     |                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                               
|10.3 | (a)                                                                                                                                                                                                                                                                                     | Bell may end this Agreement and his employment,
      without further liability to TransGlobe, by giving 30 days written notice
      of resignation to the Board of Directors, which TransGlobe may waive in
      whole or in part.                                                                                                                                                                                         
|
|
|     |                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                               
|     | (b)                                                                                                                                                                                                                                                                                     | If there is a Change of Control of the
      ownership of the Company (as defined by the Shareholders Rights Plan) Bell
      may, within 6 months after that event, elect to end this Agreement and his
      employment and TransGlobe will pay to Bell a retiring allowance in an amount
      equal to 12 months of his then current salary.                                                                              
|
|
|
|
|     |                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                               
|10.4 | If Bell should die during the term of this
      Agreement TransGlobe will pay to his estate an amount equal to 6 months
      of his then current salary.                                                                                                                             
|
|     |                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                               
|10.5 | Bell acknowledges that the arrangements
      described in this Section 10 are fair and reasonable and constitute TransGlobes
      sole obligation to provide notice of termination, severance pay or related
      compensation.                                                    
|
|
|     |                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                               
|10.6 | Regardless of how this Agreement and Bells
      employment is ended, Section 3 will remain in effect after it is ended.                                                                                                                                                              
|
|     |                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                               
|11   | NON-COMPETITION                                                                                                                                                                                                                                                                        
|     |                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                               
|11.1 | (a)                                                                                                                                                                                                                                                                                     | Bell agrees with and for the benefit of
      TransGlobe that for a period of 6 months from the date of termination of
      Bells employment, however caused, he will not be engaged in a business
      which directly competes with the business of TransGlobe.                                                                                                                                                           
|
|
|
|     |                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                               
|     | (b)                                                                                                                                                                                                                                                                                     | Bell further agrees that, during employment
      pursuant to this Agreement and for a period of 6 months following termination
      of employment, however caused, he will not hire or take away or cause to
      be hired or taken away any employee of TransGlobe or, following termination
      of Bells employment, any employee who was in the employ of TransGlobe
      during the 6 months preceding termination.
|
|
|
|
|     |                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                               
|12   | DIRECTORS AND OFFICERS LIABILITY INSURANCE/INDEMNITY                                                                                                                                                                                                                                 
|     |                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                               
|12.1 | TransGlobe will carry directors' and senior
      officers' insurance so long as its cost is not, in the Boards opinion,
      excessive.                                                                                                                                             
|
|     |                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                               
|12.2 | TransGlobe will indemnify Bell in respect
      of his actions or omissions as the Vice President Exploration of TransGlobe
      to the extent set out in the Articles and Bylaws of TransGlobe to the extent
      permitted by law.                                                 
|
|

---

|13   | TRANSGLOBE'S PROPERTY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|13.1 | Bell acknowledges that all items of any
      and every nature or kind created or used by Bell under this Agreement, or
      furnished by TransGlobe or any of its subsidiaries to Bell, and all equipment,
      credit cards, books, records, reports, files, manuals, literature, confidential
      information or other materials shall remain and be considered the exclusive
      property of TransGlobe at all times and shall be surrendered to TransGlobe,
      in good condition, promptly on the termination of Bells employment
      irrespective of the time, manner or cause of the termination.
|
|
|
|
|
|
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|14   | ASSIGNMENT OF RIGHTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|14.1 | The rights which accrue to TransGlobe under
      this agreement shall pass to its successors or assigns. The rights of Bell
      under this Agreement are not assignable or transferable in any manner.                                                                                                                                                                                                                                                                                                                                                                                                           
|
|
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|15   | NOTICES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|15.1 | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
|
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
|
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|16   | GOVERNING LAW                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|16.1 | This Agreement shall be construed in accordance
      with the laws of the Province of Alberta.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|17   | INDEPENDENT LEGAL ADVICE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|17.1 | Each of TransGlobe and Bell hereby confirm
      and acknowledge that they have sought independent legal advice with respect
      to their respective rights and obligations arising from this Agreement and
      each such party does further confirm and acknowledge with the understanding
      that each such party is relying upon such representations in entering into
      this Agreement, that this Agreement constitutes a legal, binding agreement,
      enforceable as against each such party in accordance with its terms.                                                                       
|
|
|
|
|
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|18   | DISPUTE RESOLUTION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|18.1 | Before initiating any legal proceedings,
      the parties will attempt to resolve all disputes concerning the interpretation,
      application or enforcement of any term of this Agreement by mediated negotiation,
      and will use their best efforts to resolve any dispute through mediation.                                                                                                                                                                                                                                                                                                              
|
|
|
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|18.2 | If a dispute between the parties concerning
      the interpretation, application or enforcement of any term of this Agreement
      is not resolved by mediation within 90 days after one party notifies the
      other in writing of an intention to mediate the dispute, the parties will
      submit the matter to binding arbitration, pursuant to the provisions of
      the Arbitration Actof                                                                                                                                                                                                             
|
|
|

---

|     | Alberta, and the parties hereby irrevocably authorize any
      arbitrator who may be appointed to endeavour to mediate the resolution of
      the dispute before rendering a binding award.                                                                                                                                         
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                       
|19   | ENTIRE AGREEMENT                                                                                                                                                                                                                                                                                                                      
|     |                                                                                                                                                                                                                                                                                                                                       
|19.1 | This Agreement contains the entire agreement between the
      parties with respect to Bells employment, and cancels and supersedes all
      prior agreements between them, and no amendment or variation of the terms
      of this Agreement will be effective or binding unless made in writing and
      signed by both of them.
|     |                                                                                                                                                                                                                                                                                                                                       
|20   | REGULATORY APPROVAL                                                                                                                                                                                                                                                                                                                   
|     |                                                                                                                                                                                                                                                                                                                                       
|20.1 | The option to purchase shares in Section 8 is subject to
      acceptance by the TSX and any other applicable regulatory authority and
      are subject to compliance by TransGlobe with all applicable securities
      legislation.                                                                                                

TO EVIDENCE THEIR AGREEMENT the parties have executed this
document on the dates appearing below.

TRANSGLOBE ENERGY CORPORATION

Per: /s/R..
A.HalpinAuthorized
Signatory

Name: Mr Robert A. Halpin

Title: Director & Chairman of the Board

Date: March 7,
2006

|Agreed: Edward Bell              |  | WITNESS:                    
|-------------------------------- |  | ----------------------------
|                                 |  |                             
|Signature: /s/ A. W. Edward Bell |  | Signature: /s/ *M. Wardle***
|                                 |  |                             
|Date: March 7, 2006              |  | Print Name: M. Wardle       

Signatory page to Employment Agreement dated January 1, 2006
between TransGlobe Energy Corporation and Edward Bell

---