Tanganyika Approves 2008 Capital Budget of $206 Million

Tanganyika Oil Company's capital expenditure budget for 2008 is US$206 million, excluding new business acquisition considerations.

The 2008 capital program is drilling intensive with 71% of the capital budget aimed at the drilling effort. It is expected that by the end of Q1 2008 there will be six rigs available for drilling in Syria. The budgeted drilling program is development focused with continued appraisal drilling on the large block areas outside of the proven and probable areas, such as Oudeh with 59 wells total, 6 appraisal, 50 development, 3 water supply wells; and Tishrine with 72 wells total, 32 appraisal, 37 development, 3 water disposal wells.

The capital budget related to facilities and construction accounts for 11% of the 2008 capital budget. The budget is aimed at upgrading the capacity of both Oudeh and Tishrine to 60,000 barrels per day of fluid and 25,000 barrels of oil per day ("bopd") at each central processing facility. A capital work over program has been approved for 2008 accounting for 7% of the capital budget. The program will be weighted towards sidetrack drilling on existing wells in productive areas. The remainder of the planned 2008 capital budget is aimed at other corporate and Health Safety and Environmental expenditures, including integrated waste management centers planned for both Oudeh and Tishrine.