Tanganyika Oil Begins Drilling in Egypt

Tanganyika Oil reports that the first of a two well exploration program on the Company's West Gharib concession in Egypt is expected to spud by the end of November, 2004.

The two oil exploration wells will test the Fadl and Hoshia prospects.

The Shingli Bohai Chinese rig ZJ45 is currently being mobilized to the Fadl-1 site which is located approximately 9.2 km southwest of the Hana field. Approximately 60 truck loads of equipment from Hurghada (140 km to the south) will be moved to the Fadl location.

The Company has signed an investment agreement with Yukon investments through which Yukon will finance 53.6% of Tanganyika's share of the drilling cost of the first two exploration wells, Fadl-1 and Hoshia-1, for 25% of the generated net revenue if successful. The Company continues to hold 70% working interest in the current gross field production averaging approximately 1800 bopd from Hana field.

Fadl-1 is scheduled to be drilled to a total depth of 5840 feet and will target the Upper and Lower Rudeis sandstone reservoir similar to the nearby West Bakr M field operated by a Japanese group since 1982.

The ZJ45 rig will then move to the next location, Hoshia-1, which is planned to be drilled to a depth of 4500 feet targeting the Nubia sandstone reservoir and possibly the Lower Rudeis sandstone, Cretaceous sandstone and Eocene limestone reservoirs. The Hoshia-1 well will be located approximately 14.5 km northwest of the Hana field.

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