ALMATY, KAZAKHSTAN–(Marketwired – Jan. 17, 2014) – Tethys Petroleum (“Tethys” or “the Company”) (TSX:TPL) (LSE:TPL) is pleased to announce it has received an updated Oil Resource Report for a new prospect in Kazakhstan with total Unrisked Mean Recoverable Oil Resources being estimated independently at over 400 million barrels.
The report was commissioned on the “Klymene” prospect which is located in the Kul-Bas Exploration and Production Contract to the west of the current producing assets in the Akkulka Exploration Contract. The prospect was identified from recently acquired and interpreted seismic and indicates a four-way closure with bright spots at 2 of 3 prospective stratigraphic levels within the Cretaceous and Jurassic sequence, both of which are productive in the Company’s Doris oilfield some 60 km to the east.
Additional regional geophysical work carried out by Tethys and other companies operating in the region has concluded the source for the oil filled structures of Tethys’ producing assets is most likely to the south-west of the acreage which means structures in the west of Tethys’ acreage are equally likely to hold oil than those in the east. This work led to the recent additional seismic being acquired in the western areas and the identification of this new prospect.
The report estimates gross Unrisked Mean Prospective Recoverable Oil Resources for the Klymene prospect totaling some 422 million barrels of oil. This prospect will be tested with a new exploration well to be spudded mid-year 2014.
The resource report was prepared by Gustavson Associates of the United States and has been prepared in accordance with the reporting requirements of NI 51-101 adopted by Canadian securities regulatory authorities.
Rosemary Johnson-Sabine, Vice President Exploration of Tethys commented, “We are very pleased to have Gustavson confirm the potential of these additional prospective resources attributed to our new exploration prospect Kylmene identified from recently acquired and interpreted seismic work. This will be the first prospect drilled to the west of our current producing assets, and is in an area that we regard as having good potential. We look forward to commencing drilling of this well mid-year.”
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.
The references in this press release to “Prospective Recoverable Resources” means those quantities of petroleum estimated, as of 15th January 2014, to be potentially recoverable from undiscovered accumulations by application of future exploration and 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 product types that may reasonably be expected from potential production consist of oil, condensate, natural gas and associated gas.
The resource 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 Klymene prospect. 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 potential 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.
This press release contains “forward-looking information” which may include, but is not limited to, prospective resource estimates, the potential for successful discoveries and their commercialisation, and our exploration targets. Such forward-looking statements reflect our current views with respect to future events and are subject to certain assumptions, 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, 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, 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Tethys Investor Relations
Tethys Petroleum Limited
Vice President Investor Relations
Media / IR Enquiries – London
Ben Brewerton / Natalia Erikssen
+44 207 831 3113
Office phone/fax: +852 2217 2999
Source: Tethys Petroleum Limited