Tanganyika Oil Plans Three Well Program on West Gharib Block

Tanganyika Oil Company is planning a three well drilling program on the West Gharib Block in Egypt.

The West Gharib Block in Egypt is a 1,265 square kilometer concession flanking the west coast of the Gulf of Suez. The Block contains the producing Hana Field as well as numerous exploration prospects.

The Company has acquired 383 line kilometers of new seismic. Pre-stack time migration of 3D and 2D seismic revealed several prospects of similar size or bigger than the Hana field. Processing and integration of the new data is now complete.

The Company is in the process of preparing to drill three back-to-back exploration wells. The three wells will be targeting three separate prospects located west and south of the Hana Field and in the Rahmi area south of the Issaran field. Target depth will be 5000 feet in the first two and 4500 feet in the third well. The drilling program is expected to commence in November or December, 2004, subject to rig availability which is currently in tight supply in Egypt due to the high oil prices. All casing and wellhead equipment has been procured and is on site.

Production from the Hana Field has remained steady throughout the year due to regular and ongoing well workover and maintenance programs. Gross field production from the Hana Field is currently averaging approximately 1,750 barrels per day. Tanganyika has a 70% participating interest in the West Gharib Block and is the operator.