Tanganyika Oil Company Ltd.

Tanganyika Oil Company Ltd.

October 31, 2006 09:30 ET

Tanganyika to Present at Mine LLC Investor Conference in Dubai

CALGARY, ALBERTA--(CCNMatthews - Oct. 31, 2006) - Tanganyika Oil Company Ltd. (the "Company") (TSX VENTURE:TYK)(FIRST NORTH:TYKS) is pleased to announce that it will be presenting an update of its operations at the Mine LLC Investor Conference in Dubai on November 1, 2006. In addition to previously disclosed information, the following updates will be presented at the conference. The presentation is available on the Company's website at www.tanganyikaoil.com.

Egypt - Approval of Development Licenses

The Minister of Petroleum has approved development licenses for four new oil fields within the Company's West Gharib Block. These new fields include Arta, North Hoshia, West Hoshia and South Rahmi. Current gross field production from the West Gharib Block over the past week has averaged 3,070 barrels of oil per day ("BOPD") (Company share 893 BOPD). Production from the new fields is expected to increase production to approximately 4,000 to 4,500 BOPD (gross).

Syria - Production Update

For October month to date, the gross field production in Syria has averaged approximately 9,400 BOPD (shareable production 2,405 BOPD, Company share 1,504 BOPD) compared to approximately 9,315 BOPD (shareable production 2,307 BOPD, Company share 1,455 BOPD) for the quarter ended September 30, 2006.

Production at Tishrine dropped in early October due to erratic electric power and the early arrival of the cool winter weather. In addition, several gathering system and pipeline failures have occurred as production volumes have increased over the last few months. Over the past seven days, the Company has re-established average production from the Tishrine field to the approximately 9,000 BOPD (gross) level despite not having the winterization projects on stream. Many of the winterization projects are scheduled for completion the first week of November. With the successful results of work-overs and drilling, plus the anticipated success of the steam pilot tests, planning for future facilities upgrades and expansion is underway.

At Oudeh, several of the new wells drilled in the Shiranish formation have added positive results, extending new oil in place to areas previously unrecognized as having reserves potential (see Seismic in Syria below). So far, it appears the recently drilled Shiranish oil-in-place may be more viscous than some of the other areas of the Shiranish oil reservoir which will require steam and reliable power for artificial lift to facilitate production. Erratic electrical power at Oudeh has required work-overs to resume production following outages in numerous wells. Currently, four wells are shut-in awaiting work-overs. Over the past seven days, production from the Oudeh field has averaged approximately 1,900 BOPD (gross). Despite these shut-ins, the Oudeh field's gross production for October to date is unchanged from the last quarter at approximately 2,100 BOPD (gross).

Based on appraisal drilling results of the Shiranish structure to date and in anticipation of the steam pilot results, long term planning for facilities and gathering system requirements for Oudeh is underway.

Steam Pilot Projects in Syria

The enhanced oil recovery ("EOR") steam pilots in Syria have provided encouraging results so far. Our stated expectation is a stimulated rate and recovery increase of two to three times cold production methods. For the first injections at OD-147 and WT-207, the Company intentionally injected a reduced amount of water converted to steam to ensure operational success. The following is an update of the Oudeh and Tishrine steam pilot activities by well:

OD-147, Oudeh

The completion of the first injection cycle in the Shiranish formation at OD-147 resulted in an average increase in crude production of 1.4 times cold production from an average of 118 BOPD to 167 BOPD (gross). After injecting only 15,000 barrels of cold water equivalent ("BCWE") converted to steam, a maximum bottom hole temperature ("BHT") of 235 degrees C was reached. The average steam quality was 60%, resulting in 9,000 net barrels of steam being injected.

WT-207, West Tishrine

The completion of the first injection cycle at WT-207 resulted in an average increase in crude production of 2.1 times cold production from an average of 83 BOPD to 177 BOPD (gross). Again, after injecting only 11,000 BCWE, a maximum bottom-hole temperature of 206 degrees C was reached. The average steam quality was 65%, resulting in 7,150 net barrels of steam being injected.

The production increases that were observed at both OD-147 and WT-207, with a reduced BCWE slug, plus the maximum BHT's that were achieved at depths of 1,388 metres and 611 metres respectively, are very encouraging.

Successive BCWE slugs will be optimized to deliver the most heat to individual well bores, considering the length of the production cycles and efficient use of the steam generators. The steam generators are designed to deliver steam at 80% quality. This will further increase the efficient delivery of heat to the reservoirs.

The Company is currently conducting test steam injections at two additional wells: OD-146 and WT-208.

OD-146, Oudeh

Based on the performance of the Shiranish at OD-147, the initial injection slug at OD-146 was increased to 30,000 BCWE. Bottom-hole temperatures reached a maximum of 243 degrees C, and steam quality averaged 73%, resulting in 21,900 net barrels of steam being injected. After a recent two day soak period, flow back operations were initiated. The well was flowing at 710 barrels of fluid per day ("BFPD") (gross) with a rate of 340 BOPD and wellhead flowing temperatures of 92 degrees C at the time of this release. The water fraction is largely steam that has condensed. These clean-up rates are "flowing", and pumping will resume later in the production cycle. Cold production prior to steam injection averaged 163 BOPD (gross) at less than 1% water fraction.

WT-208, West Tishrine

Based on the performance of the Chilou formation at WT-207, the initial injection slug at WT-208 was increased to 30,000 BCWE. WT-208 produces from the prolific Jadalla formation. So far, 12,500 BCWE has been injected at an average rate of 966 BCWE per day.

Syria - Drilling Operations

The Company has been advised by MB Drilling of logistical delays in mobilizing the third drilling rig, MB-21. The Company now expects to spud the first Tishrine well with the MB-21 rig in November 2006. The Company currently has two drilling rigs operating in Syria: one in the Oudeh field and one in the Tishrine field.

Seismic in Syria

The entire 483 square kilometer 3D seismic program over the Tishrine and Sheikh Mansour blocks has now been shot and is being processed. We anticipate using the West Tishrine component of the seismic starting in November to assist with the active drilling program.

In Oudeh, the processed 3D seismic provided the information to drill two wells, OD-150 and OD-151 in areas that extend the Shiranish oil initially in place. The results of these wells from electric logs look encouraging and the wells are currently being completed for production.

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".

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.

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