Tanganyika Oil Provides Update Oudeh Field Operations

Tanganyika Oil Company reports that OD#138, the third of the horizontal wells drilled from the satellite production facility 6-well drilling pad, has been successfully acidized and recompleted with a larger capacity PC pump. The well is currently producing at around 350 bopd as compared to approximately 115 bopd prior to stimulation and recompletion.

The performance of all three of the new horizontal wells is very encouraging and a recent optimization study has suggested that even higher capacity PC pumps could be installed in these wells without damaging ultimate reserves recovery. The Company is investigating the design of higher capacity pumps for installation in these wells.

Following an intensive period of data gathering and analysis from the K-Dolomite wells in the field, Tanganyika ordered new downhole pumps which are more efficient at gas handling and these pumps will be installed within the next month. The Company expects to see a significant increase in production from these workovers.

Tanganyika has also completed a review of the potential for rehabilitation of existing suspended wells and is currently finalizing plans for rehabilitation of three to four of these wells. In line with current well production rates from the K-Dolomite the Company expects that these workovers could produce an incremental 200 - 300 bopd upon successful recompletion.

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