Tanganyika Oil Spuds Fadl-1 Well in Egypt

Tanganyika Oil Company reports that the Fadl-1 exploration well has spudded. Fadl-1 is the first of a two well exploration program on the Company's West Gharib concession in Egypt and is located approximately 9.2 km southwest of the Hana field.

The well is scheduled to be drilled to a total depth of 5840 feet and will target the Upper and Lower Rudeis sandstone reservoirs similar to the nearby West Bakr M and K fields operated by the Japanese group Epedeco since 1982. The West Bakr M field has produced to date 6.5 million barrels since 1991 and the K field has produced to date 26 million barrels since 1984 and both currently produce 4000 bopd.

The ZJ45 rig will then move to the next location, Hoshia-1, which is planned to be drilled to a depth of 4500 feet targeting the Nubia sandstone reservoir with possible shallower targets in the Lower Rudeis sandstone, Cretaceous sandstone and Eocene limestone reservoirs. The Hoshia-1 well will be located approximately 14.5 km northwest of the Hana field.

The Company has a 45% working interest in the West Gharib concession and 70% working interest in the Hana field production.

In addition, the Company reports that the private placement as announced on November 5, 2004 has closed. Tanganyika sold 2 million shares at a price of $6.75 per share for gross proceeds of $13.5 million. The Company has received regulatory approval and the securities have been issued to the investors.