Kazakhstan Gas Well Testing Programme Results

July 02, 2014

BOZOI, KAZAKHSTAN–(Marketwired – July 2, 2014) – Tethys Petroleum Limited (“Tethys”) (TSX:TPL)(LSE:TPL) is pleased to announce the test results from AKK17, AKK18, AKK19 and AKK20; the first four shallow gas exploration wells of its 2014 programme.

The AKK17, AKK18, AKK19 and AKK20 wells tested at an aggregate rate of approximately 650 Mcm/d (23MMcf/d) from the Tasaran horizon.

It is planned that these wells will be incorporated under the Akkulka Production Contract by Q1 2015 whereupon they will be tied-in to the existing gas production infrastructure and placed on permanent production. Additionally, the four previously drilled and tested wells, AKK05, AKK14, AKK15 and AKK16 will also be brought on stream in Q1 2015 to target an initial total production rate of 800 – 1,000 Mcm/d (28 MMcf/d – 35 MMcf/d).

Additional wells are planned to be drilled in the proximity of the new discoveries as well as the existing wells, such as AKK15 and AKK16, next year and subsequent pipelines will be laid and tied into the optimised infrastructure in order to maintain production levels.

In support of this shallow gas programme, work has already commenced on the gas dehydration project and on the pipelines required to tie-in these additional wells to the existing gas production infrastructure. Both projects are on schedule for completion by year-end.

Graham Wall, Chief Operating Officer of Tethys commented, “We are very pleased with the continued success of the Kazakh shallow gas programme. These latest results (some of which were tubing constrained) keep us on track to achieve a near three fold increase in gas production by the beginning of 2015.”

Tethys is focused on oil and gas exploration and production activities in Central Asia and the Caspian Region. 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, the potential for successful discoveries and their commercialization, and our exploration targets. Such forward-looking statements reflect our current views with respect to future events and are subject to certain assumptions, including the assumption that the AKK17, AKK18, AKK19 and AKK20 wells will be incorporated under the Akkulka Production Contract by Q1 2015, and will be tied-in to the existing gas production infrastructure and placed on permanent production; the AKK05, AKK14, AKK15 and AKK16 wells will also be brought on stream in Q1 2015 to target an initial total production rate of 800 – 1,000 Mcm/d (28 MMcf/d – 35 MMcf/d); that additional wells will be drilled in the proximity of the new discoveries next year and subsequent pipelines will be laid and tied into the optimised infrastructure in order to maintain production levels; the gas dehydration project and pipelines required to tie-in these additional wells to the existing gas production infrastructure will be completed by years end; negotiations for a new gas sales contract will be finalised by Q4 2014; the fact that the Company will be successful in confirming the existence of the accumulations of petroleum in respect of its exploration targets, and subject to certain risks and uncertainties, including the risk that limited discoveries will result from exploration wells and as a result the risk that any or all of the prospective resources will not become recoverable. See our Annual Information Form for the year ended December 31, 2013 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.

FOR FURTHER INFORMATION PLEASE CONTACT:
Tethys Investor Relations
Sabin Rossi, Vice President Investor Relations
Tethys Petroleum Limited
srossi@tethyspetroleum.com

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Source: Tethys Petroleum Limited