Tanganyika Oil Company Ltd. provides an update on its operations in Syria and Egypt.

SYRIA OPERATIONS UPDATE

Oudeh Field

Average gross field production during the first quarter of 2007 was 2,509 bbls/d (Company net: 1,099 bbls/d). Four wells were drilled and a fifth spudded during the quarter into the Shiranish reservoir, including OD-153, which indicated oil in three new horizons; the Shiranish reservoir in an area where reserves have previously not been recognized and the deeper Butmah and Kurrachine Dolomite reservoirs. OD-153 testing is ongoing. OD-157 was drilled as a vertical Shiranish oil producer beside OD-153 to establish early production potential from this new area. OD-155H was drilled as a Shiranish horizontal oil producer after a vertical pilot established oil pay in the extreme southwest area of the Oudeh Field. OD-154H and OD-156H were drilled as development appraisal wells in the western area of the Oudeh Field. The results of these Shiranish wells will add to reserves and provide for future development drilling expansion. Currently an appraisal well OD-158 is drilling in the northwest area of the Oudeh Field to test for Shiranish hydrocarbon potential.

Oudeh production has been constrained by insufficient access to workover rigs to perform completions and routine well maintenance. The Company has successfully reached an agreement during the quarter with third party contractors to provide three additional workover rigs. The rigs are expected to be made available to the Company within four weeks. The company will continue to take advantage of the workover rigs made available by the Syrian Petroleum Company ("SPC").

During the second quarter drilling will focus on production growth in two areas. The first development phase will concentrate on the expansion of the cyclic steam pilot with the drilling of multiple new wells in the OD-146H steam pilot area. The second development phase is to down-space development drilling in the main pool area near the processing plant, with the advantage of quick production tie-in of new wells. Up to fifteen new Shiranish wells are planned for this area.

Tishrine Field

Average gross field production during the first quarter of 2007 was 6,083 bbls/d (Company net: 124 bbls/d). Gross field production has increased since the end of the first quarter and is currently in excess of 7,400 bbls/d. Nine wells were drilled during the quarter, including one water disposal well. One well targeted the Chilou A reservoir. The remaining seven oil wells were drilled as vertical and horizontal wells into the Chilou B and Jaddala reservoirs. Drilling has concentrated on in-fill wells within the West field to establish down-spacing potential. Success is moderate with some wells testing 100% water although petrophysical results indicate good oil pay. Other wells drilled in the first quarter such as T-221H, T-223H and T-224H have had initial oil production rates in excess of 150 bbls/d each. A number of step-out appraisal wells are planned for the remainder of 2007 in the Tishrine Block with the first appraisal well T-234 spudding before the end of April.

Tishrine production has also been constrained by insufficient access to workover rigs to perform completions and routine well maintenance. At the end of the quarter, the Company estimates 3,500 - 4,000 bbls/d of gross production shut in due to insufficient workover rigs. As stated above, three exclusive workover rigs have been contracted from a third party to supplement the callout SPC workover rigs. These rigs are scheduled to arrive within four weeks and will eliminate this issue from negatively impacting production in both fields.