BOZOI, KAZAKHSTAN — (Marketwired) — 10/31/13 — Tethys Petroleum Limited (“Tethys” or “the Company”) (TSX:TPL)(LSE:TPL), the E&P Company focused on Central Asia and the Caspian Region announces that it has commenced drilling of the AKD09 (“Dexa”) well in Kazakhstan and updated on Kazakh oil production operations.
The AKD09 (“Dexa”) well is located to the North-West of the producing Doris field and is designed to target Lower Cretaceous channel sandstone sequences similar to the current major producing unit in the Doris field. It is forecast to take approximately 45 – 50 days to drill to a planned total depth of 2,400 metres.
The Dexa prospect has 14 million barrels gross mean unrisked recoverable prospective oil resources attributed to it (Gustavson & Associates, April 30, 2012) in the Cretaceous sequences and the Company believes it to be an attractive prospect.
Following the successful installation and optimisation programme, previous mechanical issues relating to the downhole pumps have been resolved and production is currently approximately 3,300 barrels of oil per day from the three producing wells, these still being optimised.
The references in this press release to “prospective resources” means those quantities of petroleum estimated, as of April 30, 2012, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. There is no certainty that any portion of these resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of these resources.
The resources estimates contained or referred to are estimates only and are not meant to provide a determination as to the volume or value of hydrocarbons attributable to the Company’s properties. There are numerous uncertainties inherent in estimating quantities of resources and cash flows that may be derived, including many factors that are beyond the control of the Company. The following is a non-exhaustive list of factors which may have a significant impact on the above estimates of prospective resources: despite the classification that they are as yet undiscovered but may be potentially recoverable the Company may be unable to carry out the development or their potential recovery; the activity may not be economically viable; the Company may not have sufficient capital or time to develop them; there may be no market or transportation routes for the production; legal, contractual, environmental and governmental concerns might not allow for the recovery being undertaken; reservoir characteristics might prevent recovery. The recovery of the resources is subject to the following risks and uncertainties: market fluctuations, the proximity and capacity of oil and gas pipelines and processing equipment, government regulation, political issues, export issues, competing suppliers, operational issues (exploration, production, pricing, marketing and transportation), extensive controls and regulations imposed by various levels of government, lack of capital or income, the ability to drill productive wells at acceptable costs, the uncertainty of drilling operations, factors such as delays, accidents, adverse weather conditions, and the availability of drilling rigs and the delivery of equipment.
The Company’s interest in the Dexa well located in the North Ustyurt basin in Kazakhstan, is subject to the terms of the Akkulka Exploration Licence and Contract, which are described on pages 32, 33, 67 and 68 of the Company’s Annual Information Form for the year ended December 31, 2012 available on sedar.com. The hydrocarbon product types reasonably expected from this well are oil, natural gas and non-associated gas.
This press release contains “forward-looking information” which include statements related to the expected drilling period of the exploration well. Such forward-looking statements reflect our current views with respect to future events and are subject to certain assumptions, including the assumption that the 45-50 day period (AKD09) will be sufficient for drilling the exploration well to depth. These forward looking statements are subject to risks and uncertainties, including the risk that the drilling period for the exploration well will extend beyond the expected periods because of operational and geological factors. See our Annual Information Form for the year ended December 31, 2012 for a description of risks and uncertainties relevant to our business, including our exploration activities. The “forward looking statements” contained herein speak only as of the date of this press release and, unless required by applicable law, the Company undertakes no obligation to publicly update or revise such information, whether as a result of new information, future events or otherwise.
About Tethys Petroleum
Tethys is focused on oil and gas exploration and production activities in Central Asia and the Caspian Region with activities currently in the Republics ofKazakhstan, Tajikistan, Uzbekistan and potential interests in the Republic of Georgia. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.
Tethys Investor Relations
Vice President Investor Relations
Tethys Petroleum Limited
Media / IR Enquiries
Ben Brewerton / Natalia Erikssen
+44 207 831 3113
Office phone/fax: +852 2217 2999
Tethys Petroleum Limited
Mobile site: m.tethyspetroleum.com
Source: Tethys Petroleum Limited