2007-09-13 08:54 ET - In the News

The Financial Post reports in its Thursday edition that Tanganyika Oil has denied a Swedish newspaper report
that said the company is going to be taken out by Chinese National Petroleum Corp. for $1.61-billion, or
$28.04 per share.

The Post's David Pett, writing in Trading Desk, says UBS analyst Memet Kont told clients
"where there's smoke, there may be fire," suggesting the rumour could prove true very shortly.
"We would not be surprised if a formal offer surfaced in the coming weeks," he said in a research note.
"A number of factors lend support to the validity of the article given that CNPC is on the hunt for reserves
(Tanganyika has gross 2P reserves of 768 million barrels) and CNPC is capable of absorbing the risk associated
with politically unstable regions."

The analyst added that development of Tanganyika's reserve base in Syria requires significant capital that CNPC
can finance with internal cash flow. Mr.Kont also believes Tanganyika's assets could be worth more under CNPC
control, thus justifying the 77-per-cent premium attached to the rumoured deal. He maintained his "buy" rating
on the Calgary junior and left his $30 price target unchanged.