Tanganyika Increases Production from Oudeh Field in Syria

Tanganyika Oil Company reports that the OD#138, the third well to be drilled from the six well OD#1H drilling pad on the Oudeh Field in Syria, has just reached total depth and the 4 1/2" liner is currently being run. The well was drilled to a measured depth of 2745 meters with a horizontal length through the top Shiranish reservoir of 820 meters and a true vertical depth of 1570 meters. The well is expected to be on production within the next week, when it has been completed and tied into the production manifold.

OD#138 completes the 2004 drilling program.

3D Seismic Data Acquisition

The contract for the 3D Seismic Data Acquisition program has been awarded to BGP International China and mobilization of equipment has commenced. Data gathering is expected to start in the first half of September and is planned for completion in mid-November. Processing and initial interpretation are expected to be completed in March 2005 and the resultant maps will be used to define the 2005 drilling program locations.

Production Levels

Following successful solvent wash and acid stimulation treatments on wells OD#133 (vertical well) and OD#2H (horizontal well), production from Oudeh reached a year's high of approximately 2000 bopd and the production has averaged around 1800 bopd for the last week as several wells have been shut down for well work programs.

It is anticipated that production levels will be above 2000 bopd within the next couple of weeks as the current workovers are completed, including OD#137 which is currently being stimulated, and the new Shiranish producer, OD#138, is put on stream.

The 8" flow-line, from the satellite production manifold to the main production facility, has been successfully commissioned and has resulted in a significant reduction in flow-line pressures which helps facilitate increased production levels. A 4" test-line is currently being installed to allow individual testing of the wells (OD#136, 137, 138 and 1H) that are connected to the manifold.

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