Tanganyika Reviewing Egyptian Drilling Prospects

West Gharib, Egypt
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Tanganyika Oil Company updates its the current drilling program underway on the West Gharib concession in Egypt as well as an update on operations in Syria.

Testing of the Fadl-1 exploration well in Egypt is not yet complete due to remedial cement work required behind the 7 inch casing. The Fadl-1 was drilled to a total depth of 5612 feet and petrophysical logs indicate a potential pay zone of 40 feet in the Rudeis sandstone with 21% porosity. Testing of this zone will resume once the remedial cement operations are completed.

The second well of the program, Hoshia-1, is nearing total depth at 4,663 feet. This well is targeting the Nubia sandstone reservoir with possible shallower targets in the Lower Miocene Nukhul and Rudeis sandstone, Cretaceous sandstone and Eocene limestone reservoirs. The Hoshia-1 well is located approximately 14.5 km northwest of the Hana field.

Numerous additional prospects within the West Gharib concession are under review for a potential new drilling campaign being planned for 2005.

The gross field production from the Hana field is currently approximately 1,950 bopd.

In Syria, gross field production from the Oudeh field averaged 2,032 bopd in January.

In the Oudeh field, the first of the insert pumps with downhole "gas handling" capability has been installed in well OD#106, a K- Dolomite reservoir production well that had previously suffered from gas locking of the insert pump. Initial results are that the installation is a success and installations in OD#108, 133 and 127 are planned for the next two weeks. These installations should see a significant increase and stabilization of production from the higher API gravity K-Dolomite reservoir.

The Company has a 45% working interest in the West Gharib concession and a 70% working interest in the Hana field production. Tanganyika has a 100% working interest in the Oudeh field. Production from both fields is subject to Production Sharing Agreements.

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