PROPERTY ACQUISITION / Tanganyika Oil: Egyptian Concession Agreement
Concluded
VSE SYMBOL: TYK
JUNE 5, 1998
CALGARY, ALBERTA--TANGANYIKA OIL COMPANY LTD. (the "Company") is
pleased to announce that its wholly owned subsidiary, Dublin
International Petroleum (Egypt) Ltd. has concluded a Petroleum
Concession Agreement with the Arab Republic of Egypt.
Effective June 1, 1998, the Company is granted exclusive rights to
explore for and develop potential oil and gas reserves within the
West Gharib Block. This concession consists of 2,530 square
kilometers (630,000 acres), making the Company the largest
exploration acreage holder in the Gulf of Suez Basin. Please see
attached maps.
The West Gharib Block is strategically located, flanking the west
bank of the Gulf of Suez for over 120 kilometers. The Gulf of
Suez Basin is a prolific oil producing region with over 750,000
barrels of daily production and 6.3 billion barrels of proven
reserves. Exploration activities are currently led by major
international oil companies, including Amoco, Shell, Agip,
Marathon, Pennzoil, British Gas, Apache, Deminex, Repsol and
others. A number of oil fields are located within, but excluded
from, the concession and adjacent to the West Gharib Block.
Identification of untested structures in the Gulf of Suez basin
has always been technically challenging, however, modern
exploration techniques have proved to be effective in resolving
these problems. There has been no exploration conducted on the
West Gharib Block for over a decade, and this is the first
opportunity to utilize state of the art geophysics and drilling
technology in the search for hydrocarbons. The Company's
technical team has identified nine leads and prospects from
existing seismic data. Some 240 kilometers of 2-D and 35
kilometers of 3-D seismic data will be shot commencing in mid-June
of this year to further evaluate the exploration potential and
define drilling locations. Plans are underway to drill two test
wells during the fourth quarter of 1998.
Tanganyika Oil Company Ltd. is an international oil and gas
exploration company with its head office in Calgary, Alberta.
Along with its Egyptian interests, the Company holds concessions
in Tanzania and is actively seeking exploration opportunities in
other areas of the world.
ON BEHALF OF THE BOARD
Edward L. Molnar, President
Note: Location maps available from the Company at the phone number
listed below.
|
