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| |    | | |  2008 Third Quarter Report Tanganyika announced on September 25, 2008 that it had entered into a definitive agreement (the "Support Agreement") pursuant to which Sinopec International Petroleum Exploration and Production Corporation ("SIPC") agreed, subject to the terms of the Support Agreement, to make an offer to acquire all the outstanding common shares of Tanganyika by way of a negotiated take-over bid (the "Offer") for C$31.50 per share in cash. On October 30 2008, Mirror Lake Oil and Gas Company Limited, a wholly-owned subsidiary (the "Offeror") of SIPC mailed the offering documents relating to Offer. The Offer and the Take-over Bid Circular of the Offeror were accompanied by Tanganyika's Directors' Circular, which confirmed that the Tanganyika Board of Directors determined that the Offer is fair from a financial point of view to the shareholders of Tanganyika and is in the best interests of Tanganyika and Tanganyika's shareholders, and recommended that Tanganyika shareholders accept the Offer. The Company's financial advisor provided the Tanganyika Board of Directors with the Fairness Opinion, which states that, as of the date thereof, the consideration to be received by holders of Tanganyika Shares pursuant to the Offer is fair, from a financial point of view, to Shareholders. (more) 2008 Second Quarter Report Tanganyika is pleased to report that record production levels and realized oil prices have resulted in the Company recording $28.9 million of earnings from continuing operations during the second quarter of 2008. Gross field production grew by over 24% during the second quarter of 2008, averaging 16,670 bopd (6,025 net bopd). Average realized oil prices were over $90/bbl in Oudeh and $95/bbl in Tishrine during the second quarter, up over 90% from the average price realized price in the second quarter of 2007. World oil prices have declined subsequent to quarter end, however they remain well above the price estimates used for the Company's planning purposes. Production growth has continued subsequent to quarter end with average gross field production of over 19,600 bopd (7,800 net bopd) during July 2008 and average gross field production of over 21,000 bopd during the first 10 days of August. (more) 2008 First Quarter Report Tanganyika is pleased to report that record production levels and realized oil prices have resulted in the Company recording positive earnings from continuing operations during the first quarter of 2008. Gross field production grew by over 32% during the first quarter of 2008, averaging 13,399 bopd. Average realized oil prices were over $68/bbl during the first quarter up 88% from the average price realized price in the first quarter of 2007 of $36/bbl. World oil prices have continued to strengthen subsequent to quarter end, reaching record highs. These production gains have been recorded during one of the coldest winters in recent history confirming the success of the Company's winterization program and electrical system improvements that occurred during 2007. Production growth has continued subsequent to quarter end with average gross field production of over 15,500 bopd during April 2008. (more) 2007 Fourth Quarter Report Tanganyika is pleased to report that strong production growth has resumed from its Syrian oil fields. Gross field production grew by over 13% during the fourth quarter, averaging 10,070 bopd. This growth continued subsequent to year end with January gross field production averaging over 12,500 bopd and gross field production currently averaging over 13,500 bopd during February. These production gains have been recorded during one of the coldest winters in recent history confirming the success of the Company's winterization program and electrical system improvements that occurred during 2007. (more) 2007 Third Quarter Report Tanganyika continues appraisal drilling, enhanced oil recovery ("EOR") pilot testing and expansion and facilities upgrading at its world class Syrian oil fields (Company net proved plus probable oil reserves at December 31, 2006: 415.9 million barrels). The Company suffered some operational setbacks during the second and third quarters, which deferred the planned production growth. As a result, the Company revised the 2007 forecast exit rates downward to be in the range of 10,500 to 14,500 barrels of oil per day ("bopd") (forecast Company net 2007 exit rates: 2,550 to 4,870 bopd). Syrian gross production during the third quarter averaged 8,894 bopd (Company net: 1,447 bopd). The planned addition of three drilling rigs was delayed to ensure quality equipment will be provided for the long term contracts and work programs. Although the drilling equipment has been delayed until early 2008, recent drilling results and infrastructure upgrades have allowed gross production and sales growth to resume, especially at West Tishrine: (more) 2007 Second Quarter Report Tanganyika's activities focused on two vital areas during the second quarter of 2007; increasing oil production and further delineating the Syrian oil fields. Compared to the same quarter in 2006, Syrian gross production increased by over 14%. The pace of production growth is expected to increase during the second half of 2007 with additional rig and steam capacity. The appraisal drilling program continues to extend the Syrian field boundaries. During the second quarter of 2007, Company gross production averaged 10,665 bbl/d (Company net: 2,272 bbl/d), an increase of 14.0% compared to average Company gross production of 9,354 bbl/d (Company net: 1,582 bbl/d) during the second quarter of 2006. Syrian gross production during the second quarter averaged 9,266 bbl/d (Company net: 1,563 bbl/d), increasing 14.7% compared to average gross production of 8,079 bbl/d (Company net: 846 bbl/d) during the second quarter of 2006. (more) 2007 First Quarter Report To our shareholders, During the first quarter of 2007, Syrian gross production averaged 8,592 bbl/d (Company net: 1,223 bbl/d), down 1.5% compared to average gross production of 8,726 bbl/d (Company net: 1,180 bbl/d) during 2006. Several steps have been taken during the first quarter to address ongoing issues constraining oil production growth in Syria. A third party engineering firm is actively working in the Tishrine field, designing electrical system upgrades aimed at increasing the efficiency of the electricity supply. The electrical system upgrade is expected to be completed during the summer of 2007. Upgrades to the oil, gas and water processing systems are underway. The Company has successfully reached an agreement during the quarter with third party contractors to import three additional workover rigs. The rigs are expected to be made available to the Company during May 2007. The Company will continue to utilize the workover rigs made available to the Company by the Syrian Petroleum Company ("SPC"). Additional workover rig capacity will be aimed at alleviating the estimated 3,500 -- 4,000 bbl/d of gross production shut-in at the end of the first quarter and to complete newly drilled wells at Oudeh and Tishrine in a timely manner. (more) | | | |
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