Tanganyika Oil Company Provides Operations Update

Tanganyika Oil Company Ltd. reports that the cement squeeze operation on the Hana South-1 well has been completed. The well was re-perforated and tested using a down-hole hydraulic jet pump. The well flow tested approximately 100 barrels per day of 13.2 degrees API oil with significant quantities of water. The cement squeeze successfully stopped water channeling behind the casing, however, the oil was heavier than anticipated and a hydraulic jet pump is not suitable for lifting this type of heavy oil. The pump's jet action creates a vacuum down-hole which, given the heavy nature of the oil, lifts the water from the underlying aquifer in preference to the lateral inflow of the oil (known as a coning effect). A traditional beam pump would be more suitable for this well and may facilitate increased production levels. The Company intends to carry out further well performance evaluations once a beam pump is available. Production from this well would commence upon achieving further discoveries in the vicinity. In the meantime, the well will be temporarily suspended as the Company focuses its efforts on Farag-1 and a new exploration well, Naiem-1.

The Farag-1 well is currently at a depth of 9,562 feet. The well is targeting the deep, prolific Nubia formation. Expected total depth is approximately 10,500 feet. Logging of potential pay zones is expected to commence this week. The Farag structure is located 12 kilometers northwest of the Hana Field.

The Company is planning to drill a new exploration well, Naiem-1, in a separate updip block south of Hana South-1. Naiem-1 is expected to be structurally higher than Hana South-1.

The service rig used for testing Hana South-1 has now been mobilized to the Hana-5 location as part of the Company's ongoing workover program. The hydraulic jet pump in Hana-5 is being replaced with a Progressive Cavity Pump (PCP) to enhance the flow rate from this well and reduce operating costs. The Gulf of Suez is a prolific rift basin containing over 6 billion barrels of oil reserves and currently produces in excess of 600,000 barrels of oil per day. Tanganyika holds a 70% interest in the West Gharib Concession, encompassing over 468,750 acres. Flanking the Gulf for some 120 kilometers, this onshore concession is offset by numerous world-class reservoirs.