Tanganyika Oil Company Ltd. has entered into an agreement to sell its interests in the West Gharib concession area in Egypt to TransGlobe Energy Corporation. Pursuant to a binding purchase and sale agreement, TransGlobe will acquire all of the shares of Tanganyika subsidiaries holding the West Gharib interests in consideration for US $59 million plus working capital adjustments effective July 1, 2007 of approximately US $11.0 million which will bring the total consideration to approximately US $70.0 million. Tanganyika, through its subsidiaries, holds a 70% interest in one Development Lease and a 45% working interest in seven additional Development Leases comprising the West Gharib Production Sharing Concession. It is expected that closing of the transaction will occur before the end of September, 2007.
Gary Guidry, President of Tanganyika, commented, "With our full time focus on our world-class oil development project in Syria it was timely to divest our interests in the West Gharib block in Egypt which had gradually become non-core assets to the Company. All attention is focused on our work in Syria towards increasing production through accelerated drilling, mobilization of additional workover rigs and steam generators and the modification and expansion of oil, gas, water and electrical facilities. Four new steam generators have arrived on site and are expected to positively impact production in the coming weeks."
