Tanganyika Oil Company Ltd.
TSX VENTURE : TYK
OMX : TYKS

Tanganyika Oil Company Ltd.

September 25, 2007 17:00 ET

Tanganyika Closes Sale of Egyptian Assets

CALGARY, ALBERTA--(Marketwire - Sept. 25, 2007) - Tanganyika Oil Company Ltd. ("Tanganyika" or the "Company") (TSX VENTURE:TYK)(OMX:TYKS) is pleased to report that it has completed the previously announced sale of its interests in the West Gharib concession area in Egypt to TransGlobe Energy Corporation ("TransGlobe"). TransGlobe is a publicly traded oil and gas company listed on the TSX ("TGL") and AMEX ("TGA").

Pursuant to the purchase and sale agreement, TransGlobe has acquired all of the shares of Tanganyika subsidiaries holding the West Gharib interests in consideration for US $59 million plus working capital adjustments effective July 1, 2007 of approximately US $11.0 million bringing the total consideration to approximately US $70.0 million. Tanganyika, through its subsidiaries, held a 70% interest in one Development Lease and a 45% working interest in seven additional Development Leases comprising the West Gharib Production Sharing Concession.

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 OMX Nordic Exchange under the symbol "TYKS".

Forward-looking statements: This press release contains statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events and management's capability to execute and implement its future plans. Actual results may differ materially from those projected by management.

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

Contact Information

  • Tanganyika Oil Company Ltd.
    Gary Guidry
    President and Chief Executive Officer
    (403) 716-4051
    (403) 261-1007 (FAX)
    Email: gary.guidry@tykoil.com
    or
    Tanganyika Oil Company Ltd.
    Ian Gibbs
    Chief Financial Officer
    (604) 689-7842
    (604) 689-4250 (FAX)
    Email: ian.gibbs@tykoil.com
    or
    Tanganyika Oil Company Ltd.
    Sophia Shane
    Corporate Development
    (604) 689-7842
    (604) 689-4250 (FAX)
    Email: sophias@namdo.com
    Website: www.tanganyikaoil.com