Tanganyika Oil Company Ltd.

Tanganyika Oil Company Ltd.

September 06, 2007 02:30 ET

Tanganyika Signs Agreement to Sell Egyptian Assets

CALGARY, ALBERTA--(Marketwire - Sept. 6, 2007) - Tanganyika Oil Company Ltd. ("Tanganyika" or the "Company") (TSX VENTURE:TYK)(OMX:TYKS) is pleased to announce that it has entered into an agreement to sell 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 a binding purchase and sale agreement, TransGlobe will acquire 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 which will bring the total consideration to approximately US $70.0 million. Tanganyika, through its subsidiaries, holds a 70% interest in one Development Lease and a 45% working interest in seven additional Development Leases comprising the West Gharib Production Sharing Concession. It is expected that closing of the transaction will occur before the end of September, 2007.

Gary Guidry, President of Tanganyika, commented, "With our full time focus on our world-class oil development project in Syria it was timely to divest our interests in the West Gharib block in Egypt which had gradually become non-core assets to the Company. All attention is focused on our work in Syria towards increasing production through accelerated drilling, mobilization of additional workover rigs and steam generators and the modification and expansion of oil, gas, water and electrical facilities. Four new steam generators have arrived on site and are expected to positively impact production in the coming weeks."

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
    Tanganyika Oil Company Ltd.
    Ian Gibbs
    Chief Financial Officer
    (604) 689-7842
    (604) 689-4250 (FAX)
    Email: ian.gibbs@tykoil.com
    Tanganyika Oil Company Ltd.
    Sophia Shane
    Corporate Development
    (604) 689-7842
    (604) 689-4250 (FAX)
    Email: sophias@namdo.com
    Website: www.tanganyikaoil.com