BOZOI, KAZAKHSTAN, Jul 07, 2011 (MARKETWIRE via COMTEX) —
Tethys Petroleum Limited (“Tethys” or the “Company”) (TSX:TPL) today updated on the progress on its Kazakhstan oil exploration and appraisal activities.
Work is currently concentrating on the testing of the AKD04 (Dero) and AKD05 (Doris) appraisal wells, and on the continued drilling of the KBD01 (Kalypso) exploration well.
Following extensive flow periods and multi-rate testing the AKD05 well is currently flowing clean oil at a stable rate of approximately 520 barrels of oil per day (“bopd”) from the Upper Jurassic carbonate zone. It is now planned to acidize this zone which should significantly increase production. Acidisation is planned within the next two weeks after which the well (which is already tied into the Doris Pilot Production facilities) will be put on extended test production. There are potentially oil bearing sandstones in the Lower Cretaceous section of the well above the current producing zone, including a thin “Doris” sand on the edge of the interpreted Doris sand fan but these intervals will not be tested in the near future as the well is intended to carry out a extended production evaluation of the deeper Upper Jurassic carbonate zone.
Commenting on the AKD05 testing Mark Sarssam, VP Petroleum Development, said, “It is really encouraging that the carbonate interval is producing light oil at commercial rates with steady pressures, even prior to acidisation. The indicated primary reservoir quality is good, which is positive for the future development of this zone. We look forward to conducting the acid job now and are hopeful that this will have a significantly positive impact, as it did in the AKD01 well.”
In the AKD04 (Dero) well the Upper Jurassic carbonate interval was targeted here to evaluate whether the oil-water contact would be deeper in this area which is separated from the Doris structure by a fault. However a mixture of oil and water was obtained on test indicating that the well is close to the oil-water contact and that the fault does not seal. Like AKD05 a thin Doris sand is interpreted to be present in this well along with several other Cretaceous sands, each potentially representing another sand fan. The deepest of these zones is currently being tested – in this well it is thin but interpreted to thicken away from the wellbore. Currently non-commercial oil is being obtained from this interval, however testing of additional sand intervals in the well is planned.
Further work has been carried out on the 3D seismic data set which has resulted in additional refinement of the sand fan model for the Lower Cretaceous sands and the likelihood that the oil deposits are primarily stratigraphically trapped. Based on this mapping the location of the next Doris area well (AKD06) has been chosen and the well is expected to commence operations within the next 14 days, with total depth being reached in September. The likelihood of stratigraphic traps identified from the 3D seismic offers a large potential for the area and more detailed work and analysis is being conducted to identify additional appraisal and exploration locations.
The Kalypso (KBD01) wildcat exploration well which is targeting primarily a large potential structural closure at Carboniferous level is currently at a depth of 3,064 metres where 9 5/8″ casing is about to be set. The planned total depth of this well is between 4,000 and 4,500 metres and it is expected that this will be reached next month.
Work is now almost complete on the second phase of the Doris Pilot Oil Production project (“POP”) facilities and is awaiting final Kazakh governmental approvals. Oil production for sales under phase one continues to rise with over 1,200 bopd being produced in June and with further increases planned after commissioning of the POP facilities and the imminent delivery of a further order of new trucks. The oil rail-loading terminal is currently scheduled to be completed and operational by Q4 2011 which will halve the current trucking distance and increase margins.
Graham Wall, Chief Operating Officer of Tethys commented, “The appraisal of the Doris oil discovery is continuing with the AKD05 appraisal well finding commercially productive oil, which can be quickly tied in. We will ensure that we carry out the appraisal programme in a rigorous manner in order to make the right decisions on the ultimate development. The results from these two appraisal wells have provided additional production for sale and provided valuable information for the future appraisal. We must not lose sight of the independent engineering evaluation using pressure transient analysis which estimated the AKD01 Doris discovery well to be in contact with over 90 million barrels of fluid. Once our phase two pilot production facilities are commissioned we will be able to increase production and resulting cash flow.”
Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Tajikistan, Kazakhstan 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. See our Annual Information Form for the year ended December 31, 2010 for a description of risks and uncertainties relevant to our business, including our exploration and development activities. Test production rates may vary from sustained production rates when developing a well or a deposit. The commerciality of any discovery can be affected by many factors including product prices, operating costs, capital costs, government take and sustained production levels and ultimate recovery of hydrocarbons. Hydrocarbon indications from drilling or wireline log data do not necessarily mean that mobile hydrocarbons are present in the formation or can be produced.
Contacts: Tethys Petroleum Limited Sabin Rossi Vice President Investor Relations +1 416 572 2065 +1 416 572 2201 (FAX) info@tethyspetroleum.com Tethys Petroleum Limited TD Canada Trust Tower 161 Bay Street, 27th Floor Toronto M5J 2S1, Canada www.tethyspetroleum.com Mobile site: http://m.tethyspetroleum.com In Asia-Pacific Quam IR Anita Wan, Associate Director + (852) 2217-2999 + (852) 2217-2999 (FAX) anita.wan@quamgroup.com
SOURCE: Tethys Petroleum Limited
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