DUSHANBE, TAJIKISTAN, Mar 29, 2010 (MARKETWIRE via COMTEX) –Tethys Petroleum Limited (“Tethys” or the “Company” (TSX: TPL)) today updated on its Komsomolsk 200 (“KOM200”) gas appraisal well in Tajikistan which has now achieved a stable flow of gas following an open hole flowback test.
The KOM200 well, targeting the eastern part of the Komsomolsk structure near to Dushanbe, has now been drilled to the top of the deepest reservoir zone (the Jurassic sequence) although not yet into the prognosed Jurassic limestone reservoir which would be expected within the next 200 metres (656 feet). The current total depth is 2,044 metres (6,706 feet). Gas shows have been obtained whilst drilling the current section, in particular in the Cretaceous Hauterivian zone (a target horizon) and electric logs run through this section indicate the presence of hydrocarbons. Unfortunately the drill string became stuck, probably due to differential pressures, and as a result the well will need to be sidetracked from a depth of 1,211 metres (3,973 feet). Prior to beginning preparations for sidetrack operations an open hole flowback test was carried out over the whole interval to see if stable gas flow could be obtained. This test was successful with a stable flow of gas being obtained together with a considerable amount of water production from the water bearing zones in the 833 metre (2,733 feet) open hole section tested. It will need to be tested fully in the future after the water is isolated and without the stuck pipe interfering with the flow before an accurate measured rate can be stated. With isolation of the water zones and without the stuck drill pipe in the well an improved stable gas flow rate should be obtained primarily from the Hauterivian zone, this being the objective of the sidetrack. Tethys is now making arrangements to import additional specialist equipment to Tajikistan for the sidetrack.
Given that a stable gas flow has now been obtained from East Komsomolsk Tethys is now considering plans to drill a new well (KOM201) further east in the Komsomolsk structure with the primary objective of testing the Jurassic reservoir, which previous drilling has shown to have good reservoir properties in the area. An initial target location has been identified on one of Tethys’ recently acquired new seismic lines and appropriate permissions are being sought for the drilling location. If these permissions can be obtained quickly Tethys will likely move its Tykhe drilling rig off KOM200 temporarily to drill KOM201 and will return to complete the KOM200 sidetrack after the completion of KOM201 and also after the specialist equipment necessary for the sidetrack has arrived on location.
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.
To view a picture of the KOM200 Flowback Test, please visit the following link: http://media3.marketwire.com/docs/KOM200.pdf.
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, 2009 (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 Office: +1 416 572 2065 +1 416 572 2201 (FAX) email@example.com www.tethyspetroleum.com In Kazakhstan PG Communications Ardak Akanov Managing Director +7 (727) 272 8867, +7 (727) 272 8237, +7 (727) 272 7745 firstname.lastname@example.org In Asia-Pacific Quam IR Anita Wan Associate Director + (852) 2217-2999 email@example.com
SOURCE: Tethys Petroleum Limited