Tanganyika Announces Private Placement Of Units
December 1, 8:40 pm Eastern Time
Company Press Release
VANCOUVER, BRITISH COLUMBIA--Tanganyika Oil Company Ltd. (the ``Company') announces that it has agreed to sell, on a private placement basis, an aggregate of 1,700,000 units in the capital stock of the Company at a price of CDN$1.80 per unit, for gross proceeds of CDN$3,060,000. Each unit shall consist of one common share and one-half of a non-transferable share purchase warrant. Each whole warrant will entitle the holders thereof to purchase an additional one common share in the capital stock of the Company at any time over a two year period, at a price of CDN$2.00 per share, if exercised during the first year or, at a price of CDN$2.10 per share, if exercised during the second year.
The Company intends to use the net proceeds from the private placement for the purpose of funding the next phase of the drilling program on its West Gharib concession located onshore Egypt.
The Company also announces a proposal to repay an outstanding long term unsecured loan in the amount of CDN$207,328.76 through the conversion into approximately 115,183 common shares of the Company on the basis of CDN$1.80 per share.
The issuance of the private placement units and the shares for debt is subject to the approval of the regulatory authorities.
The recent testing of the Hana-1 oil discovery in the West Gharib Block, onshore Gulf of Suez, Egypt has established a definitive oil/water contact which confirms the in-house estimate of recoverable reserves at 24 million barrels oil. The Company is proceeding with the design and installation of permanent production and pipeline facilities expected to deliver oil sales averaging 10,000 barrels per day. In the interim, temporary trucking operations will commence within two weeks with shipments of 3,000 to 4,000 barrels crude oil per day expected.
Tanganyika Oil Company Ltd., through its wholly owned subsidiary, Dublin International Petroleum (Egypt) Limited, is the operator of the West Gharib Block, holding a 50% interest. Drucker Petroleum Inc., a wholly owned subsidiary of Drucker Industries Inc. [OTC BB:DKIN.OB - news], holds a 20% interest and GHP Exploration (West Gharib) Ltd., a wholly owned subsidiary of TransAtlantic Petroleum Corp. holds the remaining 30% interest.
ON BEHALF OF THE BOARD
Edward L. Molnar, President
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