Tanganyka Commences First Production at Oudeh Field in Syria

Tanganyika Oil has successfully completed its initial well workover program on the Oudeh Field in Syria, triggering the first incremental production from the field. Incremental production is that amount above a base level of 1063.75 barrels per day. The Oudeh Field is a large development block located in northeastern Syria containing an estimated 2.4 billion barrels oil in place (Sproule, June 2003).

Three wells were cleaned up and worked over during this initial program (one in the Shiranish reservoir and two in the Kurachine Dolomite reservoir). One beam and two PCP pumps were installed resulting in an increase in production of approximately 350 barrels above the base level. The Company will be installing higher capacity pumps into at least one of these wells over the next few weeks which should significantly increase production levels. As the field is fully developed over the next few years, total production levels are expected to reach over 30,000 barrels of oil per day (Sproule, June 2003).

Lukas H. Lundin, President of Tanganyika Oil, commented: "We've achieved an important milestone in the development of the Oudeh Field. Production sharing has now commenced. The workover program met all of our expectations and was carried out on schedule and within budget. We are very pleased with the results." Mr. Lundin further added: "We would like to express our thanks and appreciation to the Oil Ministry and the Syrian Petroleum Company for their support and help in achieving this important milestone. Their professionalism and technical expertise will contribute much to the success of the project."

Planning and preparations are now underway for additional well workovers as well as new drilling, including horizontal drilling. Horizontal drilling technology offers the potential to greatly enhance individual well productivity. To assist with the planning, the Company has recently completed reprocessing of an extensive 2D and 3D seismic database.