Tanganyika Revises Year-End Forecast Exit Rate

Year-end 2006 Syrian proved plus probable oil reserves were reported at 428.7 million barrels net to Tanganyika (764.8 million barrels gross), and work carried out during 2007 indicates potential for extensions of existing fields, new development areas and additional productive reservoirs that can be developed within field boundaries.

Operational challenges on this world-class oil deposit have hampered Tanganyika's aggressive development efforts. The company has enjoyed great technical success with its enhanced oil recovery program, proving the viability of steam injection on these fields in Syria; however, challenges including equipment procurement and facility limitations have delayed its operational objectives.

As a result, timing of achieving its first phase production goals has been affected, and the company has revised its 2007 forecast exit rates.

2007 oil production rates remained below expectation during the third quarter of 2007 due to Tishrine surface facility constraints, a delay in the arrival of additional drilling rigs and lower average oil production rates per well.

The forecast for 2007 production rates for Syria have been revised from 23,000-26,000 to 10,500 bo/d for gross field production. Additionally, the company had originally forecast net production at 10,000-12,000 bo/d. The number has been revised to 2,255.