Tanganyika Oil Company Ltd.
TSX VENTURE : TYK

Tanganyika Oil Company Ltd.

October 12, 2005 10:16 ET

Tanganyika Oil Company Ltd.: Egypt and Syria Development Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 12, 2005) - Tanganyika Oil Company Ltd. (the "Company" or "Tanganyika") (TSX VENTURE:TYK)(NYA MARKNADEN:TYKS) is pleased to provide an update on its operations in Egypt and Syria. In Egypt, the Company now has five oil fields in production or under development - Hana, Hoshia, West Hoshia, Fadl and South Ramhi. Since the Company launched its development and exploration initiatives in June, 2005, gross field production levels in Egypt have grown from approximately 1,600 bopd to over 2,500 bopd today, an increase of over 56%.

The company is currently shooting 3D seismic in the West Gahrib Block, and has a continuous 12 month, 12 well exploration, appraisal and development drilling program underway. The Company has 3 rigs in use in Egypt at the present time. Four wells have been drilled since June (Hoshia 2 and 3, West Hoshia 2 and West Yusr) and one of the existing South Ramhi wells re-completed. The Hana Field currently has 5 wells on production, the Hoshia Field has 2 with a third looking to come on stream shortly. Fadl has 1 well on production and the West Hoshia and South Ramhi wells are undergoing testing.

In Syria, development of the Oudeh Field is progressing very well. The Company is currently drilling its third new horizontal well since June (OD-141). OD-139 and OD-140 have been completed and are now undergoing testing. One drilling rig at Oudeh is currently in use with a second being procured. Gross field production from the Oudeh Field, not including the wells undergoing testing, is approximately 2,500 bopd, an increase of 26% since June. Test results from OD-139 and OD-140 are expected to available within the next two weeks. Over the next 14 months, an additional 24 wells are scheduled to be drilled. The Company has also commenced its Enhanced Oil Recovery ("EOR") program through microbial stimulation on several existing wells on the project. The Company is encouraged with the early results and has seen improvements in rate and API gravity. Pilot planning and equipment procurement is ongoing for the thermal stimulation (steam injection) scheduled to be tested over the course of 2006.

At Tishrine, the Company has completed 3 well workovers and production pump changes. Gross field production levels are currently approximately 6,700 bopd. Base case production rates for purposes of production sharing have been set at 6,525 as of May 31, 2005. This base case rate declines 5% annually. A rig is on site at Tishrin and upon formal receipt of approvals to commence production sharing, the Company will move forward immediately with an aggressive development program which will include drilling, workovers and at least 2 horizontal wells at Tishrin and 1 at Sheik Mansour as well as thermal EOR testing over the next 12 months.

Gross field production levels including the West Gharib projects in Egypt and the Oudeh and Tishrine Fields in Syria now totals approximately 11,700 bopd. The Company has a 100% working interest in the Oudeh, Tishrine and Sheik Mansour projects in Syria and a 70% working interest in the Hana Field in Egypt and 45% in the remaining West Gharib projects in Egypt.

Gary Guidry, President of Tanganyika Oil, commented, "We're well on our way to achieving gross 2005 exit production rates in the range of 15,000 bopd. We are all hard at work at achieving our goals and are very pleased with our success in both Egypt and Syria to date."

Tanganyika Oil 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 and Swedish Depository Receipts trade on the Nya Marknaden of the Stockholm Stock Exchange.

Certain statements in this press release are forward-looking statements. Specifically, this press release contains forward-looking statements relating to management's approach to operations, estimates of future sales, production and deliveries, business plans for drilling and development, estimated amounts and timing of capital expenditures, anticipated operating costs, royalty rates, cash flows, transportation plans and capacity, anticipated access to infrastructure or other expectations, beliefs, plans, goals, objectives, assumptions and statements about future events or performance. The reader is cautioned that the assumptions used in the preparation of such information, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Such factors include, but are not limited to: general economic, market and business conditions; industry capacity, competitive action by other companies, fluctuations in oil and gas prices; the results of exploration and development drilling and related activities; the uncertainty of estimates and projections relating to production, costs and expenses; uncertainties as to the availability and cost of financing; fluctuations in currency exchange rates; the imprecision in reserve estimates; risks associated with oil and gas operations, such as operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; the weather in the Company's area of operations; the ability of suppliers to meet commitments; changes in environmental and other regulations; actions by governmental authorities including changes in laws and increases in taxes; decisions or approvals of administrative tribunals; risks in conducting foreign operations (for example, political and fiscal instability or possibility of civil unrest or military action); the effects of acts of, or actions against international terrorism; and other factors, many of which are beyond the control of the Company. There is no representation by the Company that the actual results achieved during the forecast period will be the same in whole or in part as those forecast.

ON BEHALF OF THE BOARD

Gary S. Guidry, President and C.E.O.

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.
    Sophia Shane
    Corporate Development
    (604) 689-7842
    (604) 689-4250 (FAX)
    www.tanganyikaoil.com