Tanganyika Oil Company Ltd.

Tanganyika Oil Company Ltd.

December 15, 2006 16:30 ET

Tanganyika Announces CDN $95.4 Million 'SEK 582 Million' Private Placement Closed

CALGARY, ALBERTA--(CCNMatthews - Dec. 15, 2006) - Tanganyika Oil Company Ltd. ("Tanganyika" or the "Company") (TSX VENTURE:TYK)(FIRST NORTH:TYKS) is pleased to report that the private placement announced on November 24, 2006 has closed. The Company sold on a non-brokered, private placement basis, an aggregate of 6 million common shares of the Company at a price of CDN $15.91 (SEK 97 at exchange rate of 6.0979) per share for gross proceeds of CDN $95.4 million (SEK 582 million). A 3.5% finders fee was payable on a portion of the private placement. Net proceeds of the private placement will be used towards development of the Company's oil and gas assets in Syria as well as for general corporate purposes. The shares issued pursuant to the private placement are subject to a hold period expiring April 11, 2007. The private placement has received regulatory approval and the securities have been issued to the investors.

The Company also reports that it has granted incentive stock options to certain directors and officers of the Company. The options entitle such persons to purchase up to an aggregate of 450,000 common shares of Tanganyika at a price of CDN $17.51 over a period of five years. The option grant is subject to all requisite regulatory approvals.

Tanganyika Oil Company Ltd. is a Canadian oil and gas company with production and exploration assets in Egypt and Syria. Its shares are traded on the TSX Venture Exchange under the symbol TYK and its Swedish Depository Receipts trade on First North, Stockholm (previously Nya Marknaden of the Stockholm Stock Exchange) under the symbol "TYKS".

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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