Tanganyika Continues Fast Track Development of Oudeh Field

Tanganyika Oil says the company's fast track development program of the Oudeh Field in Syria is yielding positive results. Gross field production is now currently averaging approximately 1,700 bopd, a 60% increase over the base line production levels established in November, 2003. An aggressive drilling and workover program is continuing. As the field is fully developed, total production levels are expected to reach over 30,000 barrels of oil per day (Sproule, June 2003). Tanganyika has a 100% participating interest in the field and is the operator.

As recently announced, the Company's first two horizontal wells (OD #136 and OD #137) are on production. An acid stimulation is scheduled for OD #137 to further improve production rates from this well as was successfully done with OD #136. The Company is currently drilling its third horizontal well, OD #138, from the same drilling pad.

A production and testing manifold is being installed at the satellite drilling and production pad and an 8" gathering flowline is being built to take the oil to the central production facility. Work is approximately 70% complete and should be finalized within the next 10 days. The completed manifold and flowline will allow wells OD #136, OD #137, OD #1H and future wells to be produced at their full potential.

Wells OD #133 and OD #2H were successfully acidized and production tests are expected to available in the next 5 days.

The Oudeh Field is within a large, 192 square kilometre, development block in northeastern Syria which is estimated to contain 2.4 billion barrels oil in place (Sproule, June 2003).

In addition, the Company is evaluating further opportunities in both Exploration and Development plays in Syria.