Tanganyika Oil Company Ltd


Pressmeddelande   •   Nov 21, 2006 09:51 CET

CALGARY, ALBERTA - Tanganyika Oil Company Ltd. (the "Company") (TYK - TSX Venture, TYKS - First North, Stockholm) is pleased to announce that it will be presenting an update of operations to investors at a conference organized by the Swedish Shareholders Association in Stockholm on November 28, 2006. In addition to previously disclosed information, the following updates will be discussed at the conference. The presentation will be available on the Company's website www.tanganyikaoil.com.

Successful Steam Stimulation Boosts Production in Syria

The Company has access to a world class resource in excess of an estimated 5.5 billion barrels of original oil in place known to date in Syria at the underdeveloped fields of Oudeh, West Tishrine, East Tishrine, Sheikh Mansour, Sheikh Sulaiman and Jeribe (Sproule and Ryder Scott, December 31, 2005). Three land concessions are operated under two separate agreements that are structured with favourable economic terms to encourage the Company to apply heavy oil technology and experience that will result in enhanced oil recovery ("EOR"). The Company has access to existing infrastructure, unrestricted oil export and ample supplies of no-cost natural gas for EOR.

The Company has been pilot testing cyclic steam stimulation with highly successful results to date. Production rates from OD 146 continued 450-500 barrels of fluid per day ("bfpd") with a water cut of 20-25% (consisting of condensed water from steam) for a production rate of 338-400 barrels of oil per day ("bopd"). This is 2.1-2.5 times the cold production rate. What is most significant about the performance of OD 146 is that the fluid level remains at 900 feet below the surface, so installing a larger pump before the next steaming cycle will allow the production rates to be substantially increased.

Both OD 146 and OD 147 have demonstrated the ability to inject steam at high rates (1,400-1,600 barrels per day of cold water equivalent) into the matrix permeability of the Shiranish reservoir rock. This high rate is partially facilitated by the 400-500 meter horizontal wellbore section drilled in each well. The implication is that a displacement process such as steamflooding (instead of cyclic steam stimulation) or hot water flood is feasible which could further significantly enhance production rates. Publicly available statistics of the 138 conventional thermal displacement projects around the world range 25-60% recovery efficiency of the stock tank oil initially in place ("STOIIP"). A pilot steamflood program for 2007 is under consideration.

A steaming cycle was recently completed on wells WT 208 and OD 147. The steam generators are currently being moved to OD 148 for an initial steam slug of 30,000 barrels of cold water equivalent ("bcwe") and to WT 207 for a second cycle with a full slug cycle at 30,000 bcwe.

After these cycles, the company will be utilizing the vacuum insulated tubing ("VIT") to deliver much hotter temperatures to the Shiranish reservoir at Oudeh. In addition, the VIT allows the company to inject steam in any well, whether equipped for high temperatures or not, which includes the high rate wells in the eastern part of the Oudeh field.

Egypt - Production Increases on Schedule

Increasing production to the 4,000-4,500 bopd range is on schedule since the development licenses have been granted. Current field production is at 3,200 bopd (approximately 728 net to the Company). A program of further appraisal and development for production growth in 2007 is currently being planned.

Tanganyika Oil Company Ltd. is a Canadian oil and gas company with production and exploration assets in Egypt and Syria. Its shares are traded on the TSX Venture Exchange under the symbol TYK and its Swedish Depository Receipts trade on First North, Stockholm (previously Nya Marknaden of the Stockholm Stock Exchange) under the symbol "TYKS".

For further information, please contact:

Gary Guidry - President and Chief Executive Officer Arlene Weatherdon - Chief Financial Officer
Tel: (403) 716-4051 Tel: (403) 716-4054
Fax: (403) 261-1007 Fax: (403) 261-1007
E-mail: gary.guidry@tykoil.com Email: arlene.weatherdon@tykoil.com

Sophia Shane - Corporate Development
Tel: (604) 689-7842
Fax: (604) 689-4250
E-mail: sophias@namdo.com

Forward-looking statements: This press release contains statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events and management's capability to execute and implement its future plans. Actual results may differ materially from those projected by management.