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|      |  |  |
| 2017 |   | 1 |

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|   |

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|   |  |  |
| 2 |   | 2017 |

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|                                                                                 |
|---------------------------------------------------------------------------------|
|                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                            |   | TransGlobe 2018 Capital ($MM) |   |   |   | Gross Well Count |
|                                                                            |   | Development |   | Exploration |   | Total |   | Drilling |
| Concession                                                                      |   | Wells* |   | Other |   | Wells* |   | Other |   |   | Devel |   | Explor |   | Total |
| West Gharib                                                                     |   | 2.6 |   | 1.1 |   | — |   | — |   | 3.7 |   | 1 |   | — |   | 1 |
| West Bakr                                                                       |   | 7.3 |   | 3.1 |   | — |   | — |   | 10.4 |   | 5 |   | — |   | 5 |
| NW Gharib                                                                       |   | 2.4 |   | 0.9 |   | — |   | — |   | 3.3 |   | 2 |   | — |   | 2 |
| NW Sitra                                                                        |   | — |   | — |   | 5.2 |   | 0.2 |   | 5.4 |   | — |   | 2 |   | 2 |
| South Ghazalat                                                                  |   | — |   | — |   | 3.3 |   | 0.2 |   | 3.5 |   | — |   | 2 |   | 2 |
| South Alamein                                                                   |   | — |   | — |   | 2.8 |   | — |   | 2.8 |   | — |   | 1 |   | 1 |
| Egypt                                                                           |   | $12.3 |  | $5.1 |  | $11.3 |  | $0.4 |  | $29.1 |  | 8 |  | 5 |  | 13 |
| Canada                                                                          |   | $11.2 |   | $1.0 |   | — |   | — |   | $12.2 |   | 6 |   | — |   | 6 |
| 2018 Total                                                                      |   | $23.5 |  | $6.1 |  | $11.3 |  | $0.4 |  | $41.3 |   | 14 |  | 5 |  | 19 |
| Splits (%)                                                                      |   | 72% |   | 28% |   | 100% |   | 74% |   | 26% |   | 100% |
| *Wells includes new wells, completions, workovers, recompletions and equipping. |

|                                                                                                                                                                                                                                                                                                                                     |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                     |  |  |  |  |  |  |
| ($000s)                                                                                                                                                                                                                                                                                                                             |   | 2017 |  |   | 2016 |  |
| Cash flow from operating activities                                                                                                                                                                                                                                                                                                 |   | 59,450 |  |   | (1,065 | ) |
| Changes in non-cash working capital                                                                                                                                                                                                                                                                                                 |   | (3,858 | ) |   | (7,296 | ) |
| Funds flow from operations1                                                                                                                                                                                                                                                                                                         |   | 55,592 |  |   | (8,361 | ) |
| 1  Funds flow from operations does not include interest or financing costs.  Interest expense is included in financing costs on the Consolidated Statements of Loss and     Comprehensive Loss.  Cash interest paid is reported as a financing activity on the Consolidated Statements of Cash Flows. |

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|      |  |  |
| 2017 |   | 3 |

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|        |  |  |
|   |

|   |
|---|
|   |  |  |
| 4 |   | 2017 |

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|        |  |  |
|   |

|        |
|--------|
|        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | ($000s, except per share, price and volume amounts) |   | 2017 |  |   | % Change |   | 2016 |  |   | % Change |   | 2015 |  |
|   |
|   | Operations |   |   |   |   |   |   |   |   |   |   |
|   | Average production volumes |   |   |   |   |   |   |   |   |   |   |
|   | Crude oil (bbls/d) |   | 13,411 |  |   | 11 |   | 12,033 |  |   | (17) |   | 14,511 |  |
|   | NGLs and condensate (bbls/d) |   | 988 |  |   | 28065 |   | 34 |  |   | 100 |   | — |  |
|   | Natural gas (mcf/d) |   | 6,644 |  |   | 27895 |   | 230 |  |   | 100 |   | — |  |
|   | Total (boe/d) |   | 15,506 |  |   | 28 |   | 12,105 |  |   | (17) |   | 14,511 |  |
|   | Average sales volumes |   |  |  |   |  |   |  |  |   |  |   |  |  |
|   | Crude oil (bbls/d) |   | 14,754 |  |   | 33 |   | 11,093 |  |   | (7) |   | 11,977 |  |
|   | NGLs and condensate (bbls/d) |   | 988 |  |   | 28065 |   | 34 |  |   | 100 |   | — |  |
|   | Natural gas (mcf/d) |   | 6,644 |  |   | 27895 |   | 230 |  |   | 100 |   | — |  |
|   | Total (boe/d) |   | 16,849 |  |   | 51 |   | 11,165 |  |   | (7) |   | 11,977 |  |
|   | Average realized sales prices |   |   |   |   |   |   |   |   |   |   |
|   | Crude oil ($/bbl) |   | 44.71 |  |   | 49 |   | 30.05 |  |   | (30) |   | 42.93 |  |
|   | NGLs and condensate ($/bbl) |   | 21.31 |  |   | 24 |   | 17.20 |  |   | 100 |   | — |  |
|   | Natural gas ($/mcf) |   | 1.70 |  |   | (6) |   | 1.81 |  |   | 100 |   | — |  |
|   | Total oil equivalent ($/boe) |   | 41.07 |  |   | 37 |   | 29.94 |  |   | (30) |   | 42.93 |  |
|   | Inventory (Mbbl) |   | 777 |  |   | (39) |   | 1,265 |  |   | 37 |   | 923 |  |
|   | Petroleum and natural gas sales |   | 252,591 |  |   | 106 |   | 122,360 |  |   | (35) |   | 187,665 |  |
|   | Petroleum and natural gas sales, net of royalties |   | 148,464 |  |   | 135 |   | 63,134 |  |   | (32) |   | 92,212 |  |
|   | Cash flow from operating activities |   | 59,450 |  |   | 5,682 |   | (1,065 | ) |   | (101) |   | 77,526 |  |
|   | Funds flow from operations1 |   | 55,592 |  |   | 765 |   | (8,361 | ) |   | 6 |   | (8,902 | ) |
|   | - Basic per share |   | 0.77 |  |   |  |   | (0.12 | ) |   |  |   | (0.12 | ) |
|   | - Diluted per share2 |   | 0.77 |  |   |  |   | (0.12 | ) |   |  |   | (0.12 | ) |
|   | Net loss |   | (78,736 | ) |   | 10 |   | (87,665 | ) |   | 17 |   | (105,600 | ) |
|   | Net loss - diluted |   | (78,736 | ) |   | 10 |   | (87,665 | ) |   | 17 |   | (105,600 | ) |
|   | Net loss per share |   |   |   |   |   |   |   |   |   |   |
|   | - Basic |   | (1.09 | ) |   |  |   | (1.21 | ) |   |  |   | (1.44 | ) |
|   | - Diluted2 |   | (1.09 | ) |   |  |   | (1.21 | ) |   |  |   | (1.44 | ) |
|   | Capital expenditures |   | 38,159 |  |   | 43 |   | 26,658 |  |   | (41) |   | 44,902 |  |
|   | Property expenditures |   | — |  |   | (100) |   | 59,475 |  |   | — |   | — |  |
|   | Dividends paid |   | — |  |   |  |   | — |  |   | (100) |   | 12,865 |  |
|   | Dividends paid per share |   | — |  |   |  |   | — |  |   | (100) |   | 0.18 |  |
|   | Total assets |   | 327,702 |  |   | (19) |   | 406,142 |  |   | (11) |   | 455,500 |  |
|   | Cash and cash equivalents |   | 47,449 |  |   | 51 |   | 31,468 |  |   | (75) |   | 126,910 |  |
|   | Working capital |   | 50,639 |  |   | 402 |   | (16,764 | ) |   | (111) |   | 153,835 |  |
|   | Convertible debentures |   | — |  |   | (100) |   | 72,655 |  |   | 14 |   | 63,848 |  |
|   | Note payable |   | — |  |   | (100) |   | 11,162 |  |   | 100 |   | — |  |
|   | Total long-term debt, including current portion |   | 69,999 |  |   | — |   | — |  |   | — |   | — |  |
|   | Net debt-to-funds flow from operations ratio3 |   | 0.3 |  |   |  |   | (12.0 | ) |   |  |   | 10.1 |  |
|   | Reserves |   |   |   |   |   |   |   |   |   |   |
|   | Total Proved (MMboe)4 |   | 27.5 |  |   | (8) |   | 29.9 |  |   | 71 |   | 17.5 |  |
|   | Total Proved plus Probable (MMboe)4 |   | 45.9 |  |   | (8) |   | 50.0 |  |   | 74 |   | 28.7 |  |
|   |    1   Funds flow from operations (before finance costs) is a measure that represents cash generated from operating activities before changes in non-cash working capital and may not be comparable to measures used by other companies.  See "Non-GAAP Financial Measures". |
|   |    2   Funds flow from operations per share (diluted) and net loss per share (diluted) was not impacted by the convertible debentures for the years ended December 31, 2017, December 31, 2016 and December 31, 2015, as the convertible debentures were not dilutive in these years. |
|   |    3   Net debt-to-funds flow from operations ratio is a measure that represents total long-term debt (including the current portion), plus convertible debentures and working capital, over funds flow from operations for the trailing 12 months, and may not be comparable to measures used by other companies.  See "Non-GAAP Financial Measures". |
|   |      4     As determined by the Company's 2017 independent reserves evaluator, GLJ Petroleum Consultants Ltd. (“GLJ”), in their report dated January 9, 2018, with an effective date of December 31, 2017.  As determined by the Company's, 2016 and 2015 independent reserves evaluator, DeGolyer and MacNaughton Canada Limited ("DeGolyer") of Calgary, Alberta, in their reports dated January 18, 2017, and January 15, 2016 with effective dates of December 31, 2016, and December 31, 2015. The reports of GLJ and DeGolyer have been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook prepared jointly by The Society of Petroleum Evaluation Engineers (Calgary Chapter) and the Canadian Institute of Mining, Metallurgy & Petroleum (Petroleum Society), as amended from time to time and National Instrument 51-101. |
|   |  5   The 2016 information includes the results of the operations of the Harmattan assets in Alberta, Canada from December 20, 2016 to December 31, 2016 (12 days).  The Harmattan assets were acquired in a transaction that closed on December 20, 2016 (effective December 1, 2016). |

|      |
|------|
|      |  |  |
| 2017 |   | 5 |

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|        |
|--------|
|        |  |  |
|   |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Reported a net loss of $78.7 million, versus $87.7 million in 2016. The 2017 net loss includes a $79.0 million non-cash impairment loss on the Company's exploration and evaluation assets and a $8.0 million unrealized derivative loss on commodity contracts (mark-to-market loss on the Company's hedging contracts). Excluding the impairment charge and the unrealized loss on derivative commodity contracts, the Company would have achieved net earnings for 2017 of $8.3 million; |

|         |                                                                                                                                                                                                                                                                                                                                                                              |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Reported a 28% increase in production volumes as compared to 2016, which translates into an additional 3,401 boepd.  The recently acquired Canadian assets contributed 2,684 boepd of additional production, and increased Egypt production accounted for the remaining variance. The increased Egypt production was primarily from NW Gharib, which contributed 1,112 bopd; |

|         |                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Experienced a 106% increase in petroleum and natural gas sales compared to 2016, which was principally due to a 37% increase in realized prices along with a 51% increase in sales volumes. |

|         |                                                                                                                                           |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------|
| • | Achieved positive funds flow from operations of $55.6 million, compared with negative funds flow from operations of $8.4 million in 2016; |

|         |                                                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Repaid the $73.4 million (C$97.8 million) convertible debentures on March 31, 2017 with the proceeds from the prepayment agreement entered into with Mercuria Energy Trading S.A. ("Mercuria") in Q1 of 2017; |

|         |                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Repaid the $11.0 million (C$15.0 million) vendor take-back note with the revolving reserves-based lending facility ("RBL"), obtained from Alberta Treasury Branches ("ATB") in Q2 of 2017 and cash; |

|         |                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------|
| • | Repaid $15.0 million of the amount outstanding under the prepayment agreement with cash on hand; |

|         |                                                                                                                                                                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Sold three tanker liftings of entitlement crude oil totaling 1,468,726 barrels and sold an additional 1,121,391 barrels of inventoried entitlement crude oil to EGPC, resulting in a net decrease in crude oil inventory of 0.5 million barrels from 2016; |

|         |                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------|
| • | Spent $38.2 million on capital programs, which was funded from funds flow from operations and cash on hand; and |

|         |                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------|
| • | Ended the year with positive working capital of $50.6 million (including cash and cash equivalents of $47.4 million) at December 31, 2017. |

|   |
|---|
|   |  |  |
| 6 |   | 2017 |

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|   |

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |
|                                      |   |   |   | $ Per Share |  |   |   |
|                                      |   | $000s |  |   | Diluted |  |   | % Variance |  |
| 2016 net loss                             |   | (87,665 | ) |   | (1.21 | ) |   |  |
| Cash items                                |   |  |   |  |   |  |
| Volume variance                           |   | 84,747 |  |   | 1.16 |  |   | (95 | ) |
| Price variance                            |   | 45,484 |  |   | 0.63 |  |   | (52 | ) |
| Royalties                                 |   | (44,901 | ) |   | (0.62 | ) |   | 51 |  |
| Expenses:                                 |   |   |   |   |   |   |
| Production and operating                  |   | (9,889 | ) |   | (0.14 | ) |   | 11 |  |
| Transportation                            |   | (781 | ) |   | (0.01 | ) |   | 1 |  |
| Selling costs                             |   | (1,620 | ) |   | (0.02 | ) |   | 2 |  |
| Cash general and administrative           |   | 1,366 |  |   | 0.02 |  |   | (2 | ) |
| Current income taxes                      |   | (6,364 | ) |   | (0.09 | ) |   | 7 |  |
| Realized foreign exchange loss            |   | (914 | ) |   | (0.01 | ) |   | 1 |  |
| Realized derivative loss                  |   | (1,915 | ) |   | (0.03 | ) |   | 2 |  |
| Interest on long-term debt                |   | (560 | ) |   | (0.01 | ) |   | 1 |  |
| Other income                              |   | (565 | ) |   | (0.01 | ) |   | 1 |  |
| Total cash items variance                 |   | 64,088 |  |   | 0.87 |  |   | (72 | ) |
| Non-cash items                            |   |   |   |   |   |   |
| Unrealized derivative loss                |   | (7,970 | ) |   | (0.11 | ) |   | 9 |  |
| Unrealized foreign exchange gain          |   | 4,327 |  |   | 0.06 |  |   | (5 | ) |
| Depletion, depreciation and amortization  |   | (10,859 | ) |   | (0.15 | ) |   | 12 |  |
| Accretion                                 |   | (256 | ) |   | — |  |   | — |  |
| Unrealized gain on convertible debentures |   | 6,876 |  |   | 0.10 |  |   | (8 | ) |
| Impairment loss                           |   | (45,599 | ) |   | (0.63 | ) |   | 52 |  |
| Stock-based compensation                  |   | 940 |  |   | 0.01 |  |   | (1 | ) |
| Deferred income taxes                     |   | (3,009 | ) |   | (0.04 | ) |   | 3 |  |
| Deferred lease inducement                 |   | (4 | ) |   | — |  |   | — |  |
| Amortization of deferred financing costs  |   | 395 |  |   | 0.01 |  |   | — |  |
| Total non-cash items variance             |   | (55,159 | ) |   | (0.75 | ) |   | 62 |  |
| 2017 net loss                             |   | (78,736 | ) |   | (1.09 | ) |   | (10 | ) |

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |
|  Average reference prices             |   | 2017 |  |   | 2016 |  |
| Crude oil                                  |   |   |   |   |
| Dated Brent average oil price (US$/Bbl)    |   | 54.25 |  |   | 43.55 |  |
| Edmonton Sweet index (US$/bbl)             |   | 48.50 |  |   | 40.11 |  |
| Natural gas                                |   |   |   |   |
| AECO (C$/mmbtu)                            |   | 2.16 |  |   | 2.16 |  |
| U.S./Canadian Dollar average exchange rate |   | 1.2978 |  |   | 1.3256 |  |

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|------|
|      |  |  |
| 2017 |   | 7 |

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| 8 |   | 2017 |

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|                                                                                                                                                                                                                                                                                                                                                                         |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                    |   | 2017 |   | 2016 |
| ($000s, except per share,                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| price and volume amounts)                                                                                                                                                                                                                                                                                                                                               |   | Q-4 |  |   | Q-3 |  |   | Q-2 |  |   | Q-1 |  |   | Q-43 |  |   | Q-3 |  |   | Q-2 |  |   | Q-1 |  |
| Operations                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average production volumes                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Crude oil (bbls/d)                                                                                                                                                                                                                                                                                                                                                      |   | 12,027 |  |   | 12,786 |  |   | 14,347 |  |   | 14,514 |  |   | 12,861 |  |   | 11,733 |  |   | 11,472 |  |   | 12,058 |  |
| NGLs (bbls/d)                                                                                                                                                                                                                                                                                                                                                           |   | 915 |  |   | 1,081 |  |   | 919 |  |   | 1,037 |  |   | 134 |  |   | — |  |   | — |  |   | — |  |
| Natural gas (mcf/d)                                                                                                                                                                                                                                                                                                                                                     |   | 6,059 |  |   | 6,268 |  |   | 7,191 |  |   | 7,075 |  |   | 916 |  |   | — |  |   | — |  |   | — |  |
| Total (boe/d)                                                                                                                                                                                                                                                                                                                                                           |   | 13,952 |  |   | 14,912 |  |   | 16,465 |  |   | 16,731 |  |   | 13,148 |  |   | 11,733 |  |   | 11,472 |  |   | 12,058 |  |
| Average sales volumes                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Crude oil (bbls/d)                                                                                                                                                                                                                                                                                                                                                      |   | 14,324 |  |   | 15,894 |  |   | 17,141 |  |   | 11,610 |  |   | 7,018 |  |   | 11,485 |  |   | 11,783 |  |   | 14,126 |  |
| NGLs (bbls/d)                                                                                                                                                                                                                                                                                                                                                           |   | 915 |  |   | 1,081 |  |   | 919 |  |   | 1,037 |  |   | 134 |  |   | — |  |   | — |  |   | — |  |
| Natural gas (mcf/d)                                                                                                                                                                                                                                                                                                                                                     |   | 6,059 |  |   | 6,268 |  |   | 7,191 |  |   | 7,075 |  |   | 916 |  |   | — |  |   | — |  |   | — |  |
| Total (boe/d)                                                                                                                                                                                                                                                                                                                                                           |   | 16,249 |  |   | 18,020 |  |   | 19,259 |  |   | 13,826 |  |   | 7,305 |  |   | 11,485 |  |   | 11,783 |  |   | 14,126 |  |
| Average realized sales prices                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Crude oil ($/Bbl)                                                                                                                                                                                                                                                                                                                                                       |   | 53.25 |  |   | 44.82 |  |   | 39.46 |  |   | 41.66 |  |   | 37.38 |  |   | 34.43 |  |   | 30.27 |  |   | 22.58 |  |
| NGLs ($/Bbl)                                                                                                                                                                                                                                                                                                                                                            |   | 26.86 |  |   | 18.90 |  |   | 21.08 |  |   | 19.08 |  |   | 12.33 |  |   | — |  |   | — |  |   | — |  |
| Natural gas ($/Mcf)                                                                                                                                                                                                                                                                                                                                                     |   | 0.94 |  |   | 1.65 |  |   | 2.14 |  |   | 1.96 |  |   | 1.80 |  |   | — |  |   | — |  |   | — |  |
| Total oil equivalent ($/boe)                                                                                                                                                                                                                                                                                                                                            |   | 48.80 |  |   | 41.24 |  |   | 36.92 |  |   | 37.41 |  |   | 36.45 |  |   | 34.43 |  |   | 30.27 |  |   | 22.58 |  |
| Inventory (MBbl)                                                                                                                                                                                                                                                                                                                                                        |   | 777 |  |   | 988 |  |   | 1,274 |  |   | 1,528 |  |   | 1,265 |  |   | 729 |  |   | 707 |  |   | 735 |  |
| Petroleum and natural gas sales                                                                                                                                                                                                                                                                                                                                         |   | 72,954 |  |   | 68,372 |  |   | 64,711 |  |   | 46,553 |  |   | 24,501 |  |   | 36,376 |  |   | 32,461 |  |   | 29,022 |  |
| Petroleum and natural gas sales, net of royalties                                                                                                                                                                                                                                                                                                                       |   | 40,725 |  |   | 44,839 |  |   | 40,439 |  |   | 22,461 |  |   | 5,217 |  |   | 20,704 |  |   | 19,786 |  |   | 17,427 |  |
| Cash flow from operating activities                                                                                                                                                                                                                                                                                                                                     |   | 44,263 |  |   | 20,437 |  |   | (2,753 | ) |   | (2,497 | ) |   | 6,355 |  |   | (14,857 | ) |   | 6,011 |  |   | 1,426 |  |
| Funds flow from operations1                                                                                                                                                                                                                                                                                                                                             |   | 17,018 |  |   | 19,217 |  |   | 16,855 |  |   | 2,502 |  |   | (9,904 | ) |   | 2,347 |  |   | 2,026 |  |   | (2,830 | ) |
| Funds flow from operations per share                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - Basic                                                                                                                                                                                                                                                                                                                                                                 |   | 0.24 |  |   | 0.27 |  |   | 0.23 |  |   | 0.03 |  |   | (0.14 | ) |   | 0.03 |  |   | 0.03 |  |   | (0.04 | ) |
| - Diluted                                                                                                                                                                                                                                                                                                                                                               |   | 0.24 |  |   | 0.27 |  |   | 0.23 |  |   | 0.03 |  |   | (0.14 | ) |   | 0.03 |  |   | 0.03 |  |   | (0.04 | ) |
| Net loss                                                                                                                                                                                                                                                                                                                                                                |   | (2,382 | ) |   | (6,855 | ) |   | (56,622 | ) |   | (12,877 | ) |   | (33,997 | ) |   | (25,369 | ) |   | (12,050 | ) |   | (16,249 | ) |
| Net loss - diluted                                                                                                                                                                                                                                                                                                                                                      |   | (2,382 | ) |   | (6,855 | ) |   | (56,622 | ) |   | (12,877 | ) |   | (38,641 | ) |   | (25,369 | ) |   | (12,050 | ) |   | (16,249 | ) |
| Net loss per share                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - Basic                                                                                                                                                                                                                                                                                                                                                                 |   | (0.03 | ) |   | (0.09 | ) |   | (0.78 | ) |   | (0.18 | ) |   | (0.47 | ) |   | (0.35 | ) |   | (0.17 | ) |   | (0.23 | ) |
| - Diluted                                                                                                                                                                                                                                                                                                                                                               |   | (0.03 | ) |   | (0.09 | ) |   | (0.78 | ) |   | (0.18 | ) |   | (0.49 | ) |   | (0.35 | ) |   | (0.17 | ) |   | (0.23 | ) |
| Capital expenditures                                                                                                                                                                                                                                                                                                                                                    |   | 9,078 |  |   | 10,133 |  |   | 8,229 |  |   | 10,718 |  |   | 8,863 |  |   | 8,692 |  |   | 4,838 |  |   | 4,265 |  |
| Property acquisition                                                                                                                                                                                                                                                                                                                                                    |   | — |  |   | — |  |   | — |  |   | — |  |   | 59,475 |  |   | — |  |   | — |  |   | — |  |
| Total assets                                                                                                                                                                                                                                                                                                                                                            |   | 327,702 |  |   | 338,802 |  |   | 337,596 |  |   | 403,686 |  |   | 406,142 |  |   | 414,363 |  |   | 433,013 |  |   | 441,624 |  |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                               |   | 47,449 |  |   | 21,464 |  |   | 13,780 |  |   | 21,324 |  |   | 31,468 |  |   | 100,405 |  |   | 124,308 |  |   | 122,031 |  |
| Working capital                                                                                                                                                                                                                                                                                                                                                         |   | 50,639 |  |   | 58,815 |  |   | 60,319 |  |   | 42,759 |  |   | (16,764 | ) |   | 53,029 |  |   | 65,413 |  |   | 75,158 |  |
| Convertible debentures                                                                                                                                                                                                                                                                                                                                                  |   | — |  |   | — |  |   | — |  |   | — |  |   | 72,655 |  |   | 74,854 |  |   | 70,639 |  |   | 66,506 |  |
| Note payable                                                                                                                                                                                                                                                                                                                                                            |   | — |  |   | — |  |   | — |  |   | 11,259 |  |   | 11,162 |  |   | — |  |   | — |  |   | — |  |
| Total long-term debt, including     current portion                                                                                                                                                                                                                                                                                            |   | 69,999 |  |   | 79,839 |  |   | 83,725 |  |   | 73,549 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Net debt-to-funds flow from operations ratio2                                                                                                                                                                                                                                                                                                                           |   | 0.3 |  |   | 0.7 |  |   | 2.0 |  |   | (13.9 | ) |   | (12.0 | ) |   | (2.3 | ) |   | (0.4 | ) |   | 1.0 |  |
|   1 Funds flow from operations (before finance costs) is a measure that represents cash generated from operating activities before changes in non-cash working capital and may not be comparable to measures used by other companies.  See "Non-GAAP Financial Measures".                                                                                |
|   2  Net debt-to-funds flow from operations ratio is a measure that represents total long-term debt (including the current portion), plus convertible debentures and working capital over funds flow from operations from the trailing 12 months and may not be comparable to measures used by other companies.  See "Non-GAAP Financial Measures". |
|   3  The Q4-2016 information includes the results of the operations of the Harmattan assets in Alberta, Canada from December 20, 2016 to December 31, 2016 (12 days).  The Harmattan assets were acquired in a transaction that closed on December 20, 2016 (effective December 1, 2016).                                                           |

|         |                                                                                                                                                                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Reported a net loss of $2.4 million, which includes a $7.6 million unrealized derivative loss on commodity contracts (mark-to-market loss on the Company's hedging contracts). Excluding the unrealized loss on derivative commodity contracts, the Company would have achieved net earnings for the quarter of $5.2 million; |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Experienced a 198% increase in petroleum and natural gas sales compared to Q4-2016, which was principally due to a 34% increase in realized prices along with a 122% increase in sales volumes.  Realized pricing for the Company's petroleum and natural gas products are market driven. The tanker lifting sale of entitlement crude oil during the quarter and the acquired Canadian assets also contributed to the petroleum and natural gas sales increase; |

|         |                                                                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Achieved positive funds flow from operations of $17.0 million, representing the third consecutive quarter of positive funds flow from operations; |

|      |
|------|
|      |  |  |
| 2017 |   | 9 |

----

|        |
|--------|
|        |  |  |
|   |

|         |                                                                                                                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Reported a 6% increase in production volumes as compared to Q4-2016. The increase principally relates to the acquired Canadian assets in December 2016 which contributed 2,700 boepd of additional production; |

|         |                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------|
| • | Repaid $10.0 million of the amount outstanding under the prepayment agreement with cash on hand during Q4-2017; |

|         |                                                                                                                                                                                                                                    |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Sold a tanker of entitlement crude of 510,148 barrels and sold an additional 163,924 barrels of inventoried entitlement crude oil to EGPC, resulting in a decrease in crude oil inventory of 0.2 million barrels from Q3-2017; and |

|         |                                         |
|---------|-----------------------------------------|
| • | Spent $9.1 million on capital programs. |

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |
|                       |   | 2017 |  |   | 2016 |  |
| Egypt crude oil (bbls/d)   |   | 12,822 |  |   | 12,015 |  |
| Canada crude oil (bbls/d)  |   | 589 |  |   | 18 |  |
| Canada NGLs (bbls/d)       |   | 988 |  |   | 34 |  |
| Canada natural gas (mcf/d) |   | 6,644 |  |   | 230 |  |
| Total Company (boe/d)      |   | 15,506 |  |   | 12,105 |  |

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |
|                       |   | 2017 |  |   | 2016 |  |
| Egypt crude oil (bbls/d)   |   | 14,165 |  |   | 11,075 |  |
| Canada crude oil (bbls/d)  |   | 589 |  |   | 18 |  |
| Canada NGLs (bbls/d)       |   | 988 |  |   | 34 |  |
| Canada natural gas (mcf/d) |   | 6,644 |  |   | 230 |  |
| Total Company (boe/d)      |   | 16,849 |  |   | 11,165 |  |

|                                                                                                                                                                                                                                                                               |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |
| Consolidated netback                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                          |   | 2017 |   | 2016 |
| (000s, except per boe amounts)1                                                                                                                                                                                                                                               |   | $ |  |   | $/boe |  |   | $ |  |   | $/boe |  |
| Petroleum and natural gas sales                                                                                                                                                                                                                                               |   | 252,591 |  |   | 41.07 |  |   | 122,360 |  |   | 29.94 |  |
| Royalties                                                                                                                                                                                                                                                                     |   | 104,127 |  |   | 16.93 |  |   | 59,226 |  |   | 14.49 |  |
| Current taxes                                                                                                                                                                                                                                                                 |   | 21,819 |  |   | 3.55 |  |   | 15,455 |  |   | 3.78 |  |
| Operating expenses                                                                                                                                                                                                                                                            |   | 50,212 |  |   | 8.16 |  |   | 40,323 |  |   | 9.87 |  |
| Transportation                                                                                                                                                                                                                                                                |   | 793 |  |   | 0.13 |  |   | 12 |  |   | — |  |
| Selling costs                                                                                                                                                                                                                                                                 |   | 2,495 |  |   | 0.41 |  |   | 875 |  |   | 0.21 |  |
| Netback                                                                                                                                                                                                                                                                       |   | 73,145 |  |   | 11.89 |  |   | 6,469 |  |   | 1.59 |  |
| 1    The Company achieved the netbacks above on sold barrels of oil equivalent for the year ended December 31, 2017 and December 31, 2016 (these figures do not include TransGlobe's Egypt entitlement barrels held as inventory at December 31, 2017 and December 31, 2016). |
| 2  Royalties and taxes are settled on a production basis, royalties and taxes attributable to oil sales fluctuates dependent upon the sale of inventoried entitlement oil.                                                                                          |

|                                                                                                                                                                                                                                                                    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                    |  |  |  |  |  |  |  |  |  |  |  |  |
| Egypt                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                               |   | 2017 |   | 2016 |
| (000s, except per bbl amounts)1                                                                                                                                                                                                                                    |   | $ |  |   | $/bbl |  |   | $ |  |   | $/bbl |  |
| Oil sales                                                                                                                                                                                                                                                          |   | 230,323 |  |   | 44.55 |  |   | 121,728 |  |   | 30.03 |  |
| Royalties                                                                                                                                                                                                                                                          |   | 99,336 |  |   | 19.21 |  |   | 59,094 |  |   | 14.58 |  |
| Current taxes                                                                                                                                                                                                                                                      |   | 21,819 |  |   | 4.22 |  |   | 15,455 |  |   | 3.81 |  |
| Production and operating expenses                                                                                                                                                                                                                                  |   | 44,705 |  |   | 8.65 |  |   | 40,054 |  |   | 9.88 |  |
| Selling costs                                                                                                                                                                                                                                                      |   | 2,495 |  |   | 0.48 |  |   | 875 |  |   | 0.22 |  |
| Netback                                                                                                                                                                                                                                                            |   | 61,968 |  |   | 11.99 |  |   | 6,250 |  |   | 1.54 |  |
| 1    The Company achieved the netbacks above on sold barrels of oil for the year ended December 31, 2017 and December 31, 2016 (these figures do not include TransGlobe's Egypt entitlement barrels held as inventory at December 31, 2017 and December 31, 2016). |
| 2  Royalties and taxes are settled on a production basis, royalties and taxes attributable to oil sales fluctuates dependent upon the sale of inventoried entitlement oil.                                                                               |

|    |
|----|
|    |  |  |
| 10 |   | 2017 |

----

|        |
|--------|
|        |  |  |
|   |

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |  |
| Canada                         |   |   |   |   |   |   |   |   |
|                           |   | 2017 |   | 2016 |
| (000s, except per boe amounts) |   | $ |  |   | $/boe |  |   | $ |  |   | $/boe |  |
| Crude oil sales                |   | 10,464 |  |   | 48.67 |  |   | 266 |  |   | 40.38 |  |
| Natural gas sales              |   | 4,120 |  |   | 10.19 |  |   | 152 |  |   | 10.83 |  |
| NGL sales                      |   | 7,684 |  |   | 21.31 |  |   | 214 |  |   | 17.20 |  |
| Total sales                    |   | 22,268 |  |   | 22.73 |  |   | 632 |  |   | 19.12 |  |
| Royalties                      |   | 4,791 |  |   | 4.89 |  |   | 132 |  |   | 3.99 |  |
| Operating expenses             |   | 5,507 |  |   | 5.62 |  |   | 269 |  |   | 8.14 |  |
| Transportation                 |   | 793 |  |   | 0.81 |  |   | 12 |  |   | 0.36 |  |
| Netback                        |   | 11,177 |  |   | 11.41 |  |   | 219 |  |   | 6.63 |  |

|                                             |
|---------------------------------------------|
|                                             |  |  |  |  |  |  |  |  |  |  |  |  |
|                                        |   | 2017 |   | 2016 |
| (000s, except per boe amounts)              |   | $ |  |   | $/boe |  |   | $ |  |   | $/boe |  |
| G&A (gross)                             |   | 16,033 |  |   | 2.61 |  |   | 18,716 |  |   | 4.58 |  |
| Stock-based compensation                    |   | 1,478 |  |   | 0.24 |  |   | 2,418 |  |   | 0.59 |  |
| Capitalized G&A and overhead recoveries |   | (2,258 | ) |   | (0.37 | ) |   | (3,579 | ) |   | (0.88 | ) |
| G&A (net)                               |   | 15,253 |  |   | 2.48 |  |   | 17,555 |  |   | 4.29 |  |

|      |
|------|
|      |  |  |
| 2017 |   | 11 |

----

|        |
|--------|
|        |  |  |
|   |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |
| (000s)                                   |   | 2017 |  |   | 2016 |  |
| Convertible debentures                   |   | $ | 1,089 |  |   | $ | 4,418 |  |
| Long-term debt                           |   | 3,994 |  |   | — |  |
| Note payable                             |   | 532 |  |   | 140 |  |
| Reserves based lending facility          |   | 289 |  |   | — |  |
| Borrowing base facility                  |   | — |  |   | 786 |  |
| Amortization of deferred financing costs |   | 329 |  |   | 724 |  |
| Finance costs                            |   | $ | 6,233 |  |   | $ | 6,068 |  |

|    |
|----|
|    |  |  |
| 12 |   | 2017 |

----

|        |
|--------|
|        |  |  |
|   |

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |  |
|                           |   | 2017 |   | 2016 |
| (000s, except per boe amounts) |   | $ |  |   | $/boe |  |   | $ |  |   | $/boe |  |
| Egypt                          |   | 30,653 |  |   | 5.93 |  |   | 28,386 |  |   | 7.00 |  |
| Canada                         |   | 8,985 |  |   | 9.17 |  |   | 303 |  |   | 9.16 |  |
| Corporate                      |   | 398 |  |   | — |  |   | 488 |  |   | — |  |
|                           |   | 40,036 |  |   | 6.51 |  |   | 29,177 |  |   | 7.14 |  |

|    |                                                                     |
|----|---------------------------------------------------------------------|
| 1. | Expiry or impending expiry of lease with no expectation of renewal; |

|    |                                                                          |
|----|--------------------------------------------------------------------------|
| 2. | Lack of budget or plans for substantive expenditures on further E&E; |

|    |                                                                                       |
|----|---------------------------------------------------------------------------------------|
| 3. | Cessation of E&E activities due to a lack of commercially viable discoveries; and |

|    |                                                                                                                |
|----|----------------------------------------------------------------------------------------------------------------|
| 4. | Carrying amounts of E&E assets are unlikely to be recovered in full from a successful development project. |

|                       |
|-----------------------|
|                       |  |  |  |  |  |  |
| ($000s)               |   | 2017 |  |   | 2016 |  |
| Egypt                 |   | 31,151 |  |   | 26,658 |  |
| Canada                |   | 6,967 |  |   | — |  |
| Property acquisitions |   | — |  |   | 59,475 |  |
| Corporate             |   | 41 |  |   | — |  |
| Total                 |   | 38,159 |  |   | 86,133 |  |

|      |
|------|
|      |  |  |
| 2017 |   | 13 |

----

|        |
|--------|
|        |  |  |
|   |

|                                                                                                                                                                                                                                                                                                         |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                         |  |  |  |  |  |  |  |  |  |
| Proved                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |
| ($000s, except volumes and $/boe amounts)                                                                                                                                                                                                                                                               |   | 2017 |  |   | 2016 |  |   | 2015 |  |
| Total capital expenditures                                                                                                                                                                                                                                                                              |   | 38,159 |  |   | 26,658 |  |   | 42,902 |  |
| Acquisitions1                                                                                                                                                                                                                                                                                           |   | — |  |   | 59,475 |  |   | 2,000 |  |
| Dispositions                                                                                                                                                                                                                                                                                            |   | — |  |   | — |  |   | (1,500 | ) |
| Net change from previous year’s future capital                                                                                                                                                                                                                                                    |   | (13,311 | ) |   | 60,084 |  |   | (9,024 | ) |
|                                                                                                                                                                                                                                                                                                    |   | 24,848 |  |   | 146,217 |  |   | 34,378 |  |
| Reserve additions and revisions (Mboe)                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |
| Exploration and development                                                                                                                                                                                                                                                                             |   | 3,262 |  |   | 5,138 |  |   | 990 |  |
| Acquisitions, net of dispositions                                                                                                                                                                                                                                                                       |   | — |  |   | 11,667 |  |   | (300 | ) |
| Total reserve additions (Mboe)                                                                                                                                                                                                                                                                          |   | 3,262 |  |   | 16,805 |  |   | 690 |  |
| Average cost per boe                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |
| F&D                                                                                                                                                                                                                                                                                                 |   | 7.62 |  |   | 4.02 |  |   | 34.22 |  |
| FD&A                                                                                                                                                                                                                                                                                                |   | 7.62 |  |   | 8.70 |  |   | 49.83 |  |
| Three-year weighted average cost per boe                                                                                                                                                                                                                                                                |   |  |   |  |   |  |
| F&D                                                                                                                                                                                                                                                                                                 |   | 8.45 |  |   | 58.03 |  |   | 83.93 |  |
| FD&A                                                                                                                                                                                                                                                                                                |   | 9.88 |  |   | 19.58 |  |   | 110.07 |  |
| 1   The 2016 Acquisitions figure consists entirely of acquisition costs on the Canadian assets. The 2015 Acquisitions figure relates to acquisition costs on the NW Sitra concession agreement that was awarded to the Company in the 2014 EGPC bid round and ratified into law in 2015. |
| Note: The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserves additions for that year.               |

|    |
|----|
|    |  |  |
| 14 |   | 2017 |

----

|        |
|--------|
|        |  |  |
|   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |  |  |  |  |  |  |  |  |
| Proved Plus Probable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |
| ($000s, except volumes and $/boe amounts)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2017 |  |   | 2016 |  |   | 2015 |  |
| Total capital expenditure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 38,159 |  |   | 26,658 |  |   | 42,902 |  |
| Acquisitions1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | — |  |   | 59,475 |  |   | 2,000 |  |
| Dispositions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | — |  |   | — |  |   | (1,500 | ) |
| Net change from previous year’s future capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | (12,009 | ) |   | 110,102 |  |   | (30,741 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 26,150 |  |   | 196,235 |  |   | 12,661 |  |
| Reserve additions and revisions (Mboe)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |
| Exploration and development                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 1,538 |  |   | 4,906 |  |   | 1,498 |  |
| Acquisitions, net of dispositions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | — |  |   | 20,744 |  |   | (936 | ) |
| Total reserve additions (Mboe)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 1,538 |  |   | 25,650 |  |   | 562 |  |
| Average cost per boe                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |
| F&D                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 17.00 |  |   | 3.66 |  |   | 8.03 |  |
| FD&A                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 17.00 |  |   | 7.65 |  |   | 22.53 |  |
| Three-year weighted average cost per boe                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |  |   |  |   |  |
| F&D2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 7.07 |  |   | 231.05 |  |   | — |  |
| FD&A2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 8.47 |  |   | 14.51 |  |   | — |  |
| 1   The 2016 Acquisitions figure consists entirely of acquisition costs on the Canadian assets. The 2015 Acquisitions figure relates to acquisition costs on the NW Sitra concession agreement that was awarded to the Company in the 2014 EGPC bid round and ratified into law in 2015.                                                                                                                                                                                                                                                                                                                                                                    |
|          2    In 2015, the three-year weighted average F&D and FD&A costs on a 2P basis were negative.  The negative F&D and FD&A costs are driven primarily by negative reserve revisions               in 2014.  The Company did not make sufficient new discoveries to offset the negative technical revisions in 2014, resulting in negative F&D and FD&A costs which are meaningless               on a per Bbl basis. |
| Note: The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserves additions for that year.                                                                                                                                                                                                                                                                                                                                                                                  |

|                                                                                                                                                                                                                                                                                                                               |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                          |   | Three-Year |  |   |   |   |   |   |   |
| Proved                                                                                                                                                                                                                                                                                                                        |   | Weighted |  |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                          |   | Average2 |  |   | 2017 |  |   | 2016 |  |   | 2015 |  |
| Netback ($/boe)1                                                                                                                                                                                                                                                                                                              |   | 1.59 |  |   | 8.08 |  |   | (3.12 | ) |   | (3.12 | ) |
| Proved F&D costs ($/boe)                                                                                                                                                                                                                                                                                                  |   | 8.45 |  |   | 7.62 |  |   | 4.02 |  |   | 34.22 |  |
| Proved FD&A costs ($/boe)                                                                                                                                                                                                                                                                                                 |   | 9.88 |  |   | 7.62 |  |   | 8.80 |  |   | 49.83 |  |
| F&D Recycle ratio2                                                                                                                                                                                                                                                                                                        |   | 0.19 |  |   | 1.06 |  |   | — |  |   | — |  |
| FD&A Recycle ratio2                                                                                                                                                                                                                                                                                                       |   | 0.16 |  |   | 1.06 |  |   | — |  |   | — |  |
| 1   Netback, for the purposes of calculating the recycle ratio, is defined as net sales less operating, exploration, selling, G&A (excluding non-cash items), realized foreign exchange    (gain) loss, cash finance costs and current income tax expense per Bbl of production.       |
|     2    In 2016 and 2015, recycle ratios were negative as a result of negative netbacks. Negative recycle ratios are meaningless and have therefore been presented as nil.  The negative netbacks for 2016 and 2015 were included in the three-year weighted average recycle ratios. |

|                                                                                                                                                                                                                                                                                                                               |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                          |   | Three-Year |  |   |   |   |   |   |   |
| Proved Plus Probable                                                                                                                                                                                                                                                                                                          |   | Weighted |  |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                          |   | Average2 |  |   | 2017 |  |   | 2016 |  |   | 2015 |  |
| Netback ($/boe)1                                                                                                                                                                                                                                                                                                              |   | 1.59 |  |   | 8.08 |  |   | (3.12 | ) |   | (3.12 | ) |
| Proved plus Probable F&D costs ($/boe)                                                                                                                                                                                                                                                                                    |   | 7.07 |  |   | 17.00 |  |   | 3.66 |  |   | 8.03 |  |
| Proved plus Probable FD&A costs ($/boe)                                                                                                                                                                                                                                                                                   |   | 8.46 |  |   | 17.00 |  |   | 7.65 |  |   | 22.53 |  |
| F&D Recycle ratio2                                                                                                                                                                                                                                                                                                        |   | 0.22 |  |   | 0.48 |  |   | — |  |   | — |  |
| FD&A Recycle ratio2                                                                                                                                                                                                                                                                                                       |   | 0.19 |  |   | 0.48 |  |   | — |  |   | — |  |
|  1    Netback, for the purposes of calculating the recycle ratio, is defined as net sales less operating, exploration, selling, G&A (excluding non-cash items), realized foreign exchange   (gain) loss, cash finance costs and current income tax expense per Bbl of production. |
|      2    In 2016 and 2015, recycle ratios were negative as a result of negative netbacks. Negative recycle ratios are meaningless and have therefore been presented as nil. The negative netbacks for 2016 and 2015 were included in the three-year weighted average ratios.    |

|      |
|------|
|      |  |  |
| 2017 |   | 15 |

----

|        |
|--------|
|        |  |  |
|   |

|                                             |
|---------------------------------------------|
|                                             |  |  |  |  |  |  |  |  |  |
| ($000s, except volumes and per boe amounts) |   | 2017 |  |   | 2016 |  |   | 2015 |  |
| Net loss                                    |   | (78,736 | ) |   | (87,665 | ) |   | (105,600 | ) |
| Adjustments for non-cash items:             |   |   |   |   |   |   |
| Depletion, depreciation and amortization    |   | 40,036 |  |   | 29,177 |  |   | 42,875 |  |
| Accretion                                   |   | 256 |  |   | — |  |   | — |  |
| Stock-based compensation                    |   | 1,478 |  |   | 2,418 |  |   | 2,787 |  |
| Deferred income taxes                       |   | — |  |   | (3,009 | ) |   | (36,041 | ) |
| Amortization of deferred financing costs    |   | 329 |  |   | 724 |  |   | 849 |  |
| Amortization of deferred lease inducement   |   | (91 | ) |   | (95 | ) |   | (104 | ) |
| Realized loss on commodity contracts        |   | 7,970 |  |   | 956 |  |   | 688 |  |
| Unrealized foreign exchange (gain) loss     |   | (35 | ) |   | 4,292 |  |   | (11,333 | ) |
| Unrealized loss on financial instruments    |   | 151 |  |   | 7,027 |  |   | 6,615 |  |
| Impairment loss                             |   | 79,025 |  |   | 33,426 |  |   | 85,373 |  |
| Asset retirement obligations settled        |   | (695 | ) |   | — |  |   | — |  |
| Recycle netback                             |   | 49,688 |  |   | (12,749 | ) |   | (13,639 | ) |
| Sales volumes (Mboe)                        |   | 6,150 |  |   | 4,086 |  |   | 4,372 |  |
| Recycle netback per boe                     |   | 8.08 |  |   | (3.12 | ) |   | (3.12 | ) |

|    |
|----|
|    |  |  |
| 16 |   | 2017 |

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|        |
|--------|
|        |  |  |
|   |

|                                                                                                                                                                                                                                                       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                       |  |  |  |  |  |  |
| Sources and Uses of Cash                                                                                                                                                                                                                              |   |   |   |   |
| ($000s)                                                                                                                                                                                                                                               |   | 2017 |  |   | 2016 |  |
| Cash sourced                                                                                                                                                                                                                                          |   |  |   |  |
| Funds flow from operations1                                                                                                                                                                                                                           |   | 55,592 |  |   | (8,361 | ) |
| Transfer from restricted cash                                                                                                                                                                                                                         |   | 18,323 |  |   | — |  |
| Increase in long-term debt                                                                                                                                                                                                                            |   | 85,328 |  |   | — |  |
| Other                                                                                                                                                                                                                                                 |   | 548 |  |   | — |  |
|                                                                                                                                                                                                                                                  |   | 159,791 |  |   | (8,361 | ) |
| Cash used                                                                                                                                                                                                                                             |   |   |   |   |
| Capital expenditures                                                                                                                                                                                                                                  |   | 38,159 |  |   | 26,658 |  |
| Deferred financing costs                                                                                                                                                                                                                              |   | 1,554 |  |   | — |  |
| Transfer to restricted cash                                                                                                                                                                                                                           |   | — |  |   | 17,462 |  |
| Property acquisitions                                                                                                                                                                                                                                 |   | — |  |   | 48,313 |  |
| Repayment of long-term debt                                                                                                                                                                                                                           |   | 15,000 |  |   | — |  |
| Repayment of convertible debentures                                                                                                                                                                                                                   |   | 73,375 |  |   | — |  |
| Repayment of note payable                                                                                                                                                                                                                             |   | 11,041 |  |   | — |  |
| Finance costs                                                                                                                                                                                                                                         |   | 6,952 |  |   | 5,288 |  |
| Other                                                                                                                                                                                                                                                 |   | — |  |   | 2,212 |  |
|                                                                                                                                                                                                                                                  |   | 146,081 |  |   | 99,933 |  |
|                                                                                                                                                                                                                                                  |   | 13,710 |  |   | (108,294 | ) |
| Changes in non-cash working capital                                                                                                                                                                                                                   |   | 2,271 |  |   | 12,852 |  |
| Increase (decrease) in cash and cash equivalents                                                                                                                                                                                                      |   | 15,981 |  |   | (95,442 | ) |
| Cash and cash equivalents – beginning of year                                                                                                                                                                                                   |   | 31,468 |  |   | 126,910 |  |
| Cash and cash equivalents – end of year                                                                                                                                                                                                         |   | 47,449 |  |   | 31,468 |  |
| 1   Funds flow from operations (before finance costs) is a measure that represents cash generated from operating activities before changes in non-cash working capital, and may not be comparable to measures used by other companies. |

|      |
|------|
|      |  |  |
| 2017 |   | 17 |

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|--------|
|        |  |  |
|   |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |
|                                   |   | Year ended |  |   | Year ended |  |
| (bbls)                                 |   | December 31, 2017 |  |   | December 31, 2016 |  |
| Product inventory, beginning of period |   | 1,265,080 |  |   | 923,106 |  |
| TransGlobe entitlement production      |   | 2,101,792 |  |   | 2,036,483 |  |
| Tanker liftings                        |   | (1,468,727 | ) |   | (1,694,509 | ) |
| EGPC sales                             |   | (1,121,391 | ) |   | — |  |
| Product inventory, end of period       |   | 776,754 |  |   | 1,265,080 |  |

|                                                                                                                                                       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| ($000s)                                                                                                                                               |   |   |   | Payment Due by Period1 2 |
|                                                                                                                                                  |   | Recognized |   |   |   |   |   |   |   |   |
|                                                                                                                                                  |   | in Financial |   | Contractual |  |   | Less than |  |   |   |  |   |   |  |
|                                                                                                                                                  |   | Statements |   | Cash Flows |  |   | 1 year |  |   | 1-3 years |  |   | 4-5 years |  |
| Accounts payable and accrued liabilities                                                                                                              |   | Yes - Liability |   | 27,104 |  |   | 27,104 |  |   | — |  |   | — |  |
| Long-term debt                                                                                                                                        |   | Yes - Liability |   | 69,999 |  |   | — |  |   | 11,207 |  |   | 58,792 |  |
| Financial derivative instruments                                                                                                                      |   | Yes - Liability |   | 7,970 |  |   | 4,015 |  |   | 3,955 |  |   | — |  |
| Convertible debentures                                                                                                                                |   | Yes - Liability |   | — |  |   | — |  |   | — |  |   | — |  |
| Note payable                                                                                                                                          |   | Yes - Liability |   | — |  |   | — |  |   | — |  |   | — |  |
| Office and equipment leases3                                                                                                                          |   | No |   | 3,587 |  |   | 1,707 |  |   | 1,880 |  |   | — |  |
| Minimum work commitments4                                                                                                                             |   | No |   | 5,129 |  |   | 5,129 |  |   | — |  |   | — |  |
| Total                                                                                                                                                 |   |   |   | 113,789 |  |   | 37,955 |  |   | 17,042 |  |   | 58,792 |  |
| 1 Payments exclude ongoing operating costs, finance costs and payments made to settle derivatives.                                               |
| 2 Payments denominated in foreign currencies have been translated at December 31, 2017 exchange rates.                                           |
| 3 Office and equipment leases include all drilling rig contracts.                                                                                |
| 4 Minimum work commitments include contracts awarded for capital projects and those commitments related to exploration and drilling obligations. |

|      |
|------|
|      |  |  |
| 2017 |   | 18 |

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|--------|
|        |  |  |
|   |

|                                                                    |
|--------------------------------------------------------------------|
|                                                                    |  |  |  |  |  |  |  |  |  |  |  |  |
| Financial Brent Crude Oil Contracts                                |
| Transaction Date                                                   |   | Period Hedged |   | Contract |   | Volume bbl |   | Bought Put USD$/bbl |   | Sold Call USD$/bbl |   | Sold Put USD$/bbl |
| 7-Apr-17                                                           |   | Mar-18 |   | 3-Way Collar |   | 250,000 |   | 53.00 |   | 61.15 |   | 44.00 |
| 12-Apr-17                                                          |   | Jun-18 |   | 3-Way Collar |   | 250,000 |   | 54.00 |   | 63.10 |   | 45.00 |
| 12-Apr-17                                                          |   | Sep-18 |   | 3-Way Collar |   | 250,000 |   | 54.00 |   | 64.15 |   | 45.00 |
| 12-Apr-17                                                          |   | Dec-18 |   | 3-Way Collar |   | 250,000 |   | 54.00 |   | 65.45 |   | 45.00 |
| 23-May-17                                                          |   | Jul 2020 - Dec 20201 |   | 3-Way Collar |   | 300,000 |   | 54.00 |   | 63.45 |   | 45.00 |
| 31-Aug-17                                                          |   | Jan 2020 - Jun 20202 |   | 3-Way Collar |   | 300,000 |   | 54.00 |   | 61.25 |   | 46.50 |
| 12-Oct-17                                                          |   | Jan 2019 - Dec 20193 |   | 3-Way Collar |   | 396,000 |   | 53.00 |   | 62.10 |   | 46.00 |
| 26-Oct-17                                                          |   | Jan 2019 - Dec 20194 |   | 3-Way Collar |   | 399,996 |   | 54.00 |   | 61.35 |   | 46.00 |
| 1. 50,000 bbls per calendar month through Jul 2020 - Dec 2020      |
| 2. 50,000 bbls per calendar month through Jan 2020 - Jun 2020      |
| 3. 33,000 bbls per calendar month through Jan 2019 - Dec 2019 |
| 4. 33,333 bbls per calendar month through Jan 2019 - Dec 2019 |

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |
| Financial WTI Crude Oil Contracts |
| Transaction Date                  |   | Period Hedged |   | Contract |   | Volume bbl |   | Sold Swap USD$/bbl |   | Bought Put CAD$/bbl |   | Sold Call CAD$/bbl |
| 15-Dec-17                         |   | Jan 2018 - Dec 20181 |   | Swap |   | 60,225 |   | 56.35 |   | — |   | — |
| 15-Dec-17                         |   | Jan 2018 - Dec 20181 |   | Put Option |   | 60,225 |   | — |   | 64.00 |   | — |
| 15-Dec-17                         |   | Jan 2018 - Dec 20181 |   | Call Option |   | 60,255 |   | — |   | — |   | 78.85 |
| 1. 165 bbls per day               |

|      |
|------|
|      |  |  |
| 2017 |   | 19 |

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|--------|
|        |  |  |
|   |

|         |                  |
|---------|------------------|
| • | Financial risks; |

|         |                                                                              |
|---------|------------------------------------------------------------------------------|
| • | Market risks (such as commodity price, foreign exchange and interest rates); |

|         |               |
|---------|---------------|
| • | Credit risks; |

|         |                  |
|---------|------------------|
| • | Liquidity risks; |

|         |                                                                                |
|---------|--------------------------------------------------------------------------------|
| • | Operational risks including capital, operating and reserves replacement risks; |

|         |                                                         |
|---------|---------------------------------------------------------|
| • | Safety, environmental, social and regulatory risks; and |

|         |                  |
|---------|------------------|
| • | Political risks. |

|    |
|----|
|    |  |  |
| 20 |   | 2017 |

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|        |  |  |
|   |

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|------|
|      |  |  |
| 2017 |   | 21 |

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|        |  |  |
|   |

|    |
|----|
|    |  |  |
| 22 |   | 2017 |

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|        |  |  |
|   |

|      |
|------|
|      |  |  |
| 2017 |   | 23 |

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|        |
|--------|
|        |  |  |
|   |

|    |
|----|
|    |  |  |
| 24 |   | 2017 |