Tanganyika Signs PSA for Two Blocks in Syria

Tanganyika Oil Company reports that a Production Sharing Agreement over the Tishrin and Sheik Mansour fields has been signed with the Syrian Petroleum Company at an official signing ceremony held today in Damascus, Syria. Top government and Ministry of Petroleum officials were in attendance as well as Tanganyika management and investors. These two new projects combined with the Oudeh field bring the Company a major step forward towards becoming one of the largest investors in the country.

Lukas Lundin, Chairman of Tanganyika Oil, commented: "We are very pleased to add these two new great projects to our portfolio. With Tishrin, Sheik Mansour and Oudeh, combined oil in place is now estimated to be well over 3 billion barrels. We plan to commence an aggressive development program immediately upon ratification of the Production Sharing Agreement by the Syrian Government and continue our success in Syria. The fields offer enormous upside for the Company and jumpstarts our growth as an oil producer. Syria is a great place to do business and not only does Syria offer an excellent investment climate but our shareholders and other guests who have visited the projects and historic sites in the country have enjoyed outstanding tourism hospitality. We would like to commend the Ministry of Petroleum and the Syrian Petroleum Company for their excellence and professionalism as always."

The Tishrin and Sheik Mansour Fields are located in the prolific oil producing region of Jbisseh some 120 km southwest of the company's existing Oudeh field project. The Tishrin Field is currently producing approximately 6000 bopd through the central production facility and analysis of data and current well performance indicates production upside potential. The Sheikh Mansour Field productive area has been defined by 5 appraisal wells, but is as yet undeveloped. The two fields may contain in excess of 700 million barrels of oil in place and have upside potential.