Tanganyika Makes Discovery with 2nd Egyptian Well

Tanganyika Oil Company is encouraged by the test results of its second exploration well, Hoshia-1. The well flowed with a beam pump approximately 500 barrels of 16.5 degree API oil per day from 28 feet of perforations between 4035 and 4068 feet. Hoshia-1 was drilled in 21 days between January 16 and February 6, 2005 and reached a total depth of 5941 feet. The well penetrated 32 feet of oil pay zone in the Lower Miocene Rudeis sandstone reservoir with average 25% porosity.

The Company has also completed drilling the shallow well West Hoshia-1 located 4 kilometers south west of Hoshia-1 to a total depth of 2028 feet. Petrophysical logs and 15 feet of 8 1/2 inch core indicate 60 feet of potential heavy oil pay zone with average 17% porosity. West Hoshia-1 was drilled in 12 days between February, 27 and March 11, 2005. The Company will commence testing this well as soon as test equipment become available.

Fadl-1 which was drilled earlier in this exploration drilling campaign is currently being suspended while waiting for testing after completion of a cement squeeze job to isolate a water zone below 40 feet of potential heavy oil pay zone as indicated by petrophysical logs.

The Company is currently drilling it's forth exploration well, Naiem-1, located 6 kilometers south of Hana field which is currently producing at an average gross rate of 1,800 bbls of 26 degree API oil per day.