TASHKENT, UZBEKISTAN, Oct 28, 2010 (MARKETWIRE via COMTEX) —
Tethys Petroleum Limited (“Tethys” or the “Company”) (TSX: TPL) today announced that operations had commenced on the NUR96H2 horizontal development well on the North Urtabulak oil field. This well, which is twinning a previous well which produced over 2,000 bopd prior to a mechanical failure in that well, is being drilled in what is the most prolific part of the reservoir. Operations are expected to be completed within six weeks after which it is planned to put the well on immediate production.
Work is also progressing well on the radial drilling programme on the North Urtabulak field with 4 wells having now been worked on and with radial drilling about to commence on a further well. Initial data indicate a positive impact on oil production although further data is required as the radial wells clean up. This is the first time that this technique has been applied in Uzbekistan.
The North Urtabulak oil field is a large mature oil field located in the Kashkadarya region of Uzbekistan. Tethys operates there through its subsidiary, Tethys Production Uzbekistan, under the terms of a Production Enhancement Contract (“PEC”) with the Uzbek State oil companies.
Current gross production under the PEC is 1,216 bopd with Tethys intending to increase this production level through the radial drilling programme, enhanced water injection and new wells such as the NUR96H2 well.
A Memorandum of Understanding (“MOU”) was signed recently with the State oil company, Uzbekneftegaz, for Tethys to work on additional fields in Uzbekistan and negotiations are on going with respect to this.
Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Kazakhstan, Tajikistan and Uzbekistan. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.
This press release contains “forward-looking information” which may include, but is not limited to, statements with respect to our operations. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including the risks relating to regulatory approvals and of sufficiency of the proceeds for the purposes contemplated.
See the description of risks and uncertainties and underlying factors and assumptions relevant to the offering and “forward looking information” contained herein and to the Company’s business, including its exploration and development activities, contained in the Annual Information Form dated March 31, 2010 and other corporate filings (which are incorporated herein by reference). 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.
Contacts: Tethys Petroleum Limited Sabin Rossi Vice President Investor Relations +1 416 572 2065 +1 416 572 2201 (FAX) firstname.lastname@example.org www.tethyspetroleum.com In Asia-Pacific Quam IR Anita Wan, Associate Director + (852) 2217-2999 + (852) 2217-2999 (FAX) email@example.com
SOURCE: Tethys Petroleum Limited