DUSHANBE, TAJIKISTAN, Oct 20, 2011 (MARKETWIRE via COMTEX) —
Tethys Petroleum Limited (“Tethys” or the “Company”) (TSX: TPL)(LSE: TPL) today announced results of a successful workover of well BST20 in the Beshtentak oilfield in Tajikistan, and also gave a brief update on other Tajik drilling and production operations.
Beshtentak well BST20 has recently been worked over by applying modern perforating and acidisation techniques and applying natural gas lift. The well has tested oil at a rate of 533 barrels of oil per day (“bopd”), accompanied by 12,500 cubic metres (441 thousand cubic feet) of gas per day on a restricted choke (10 mm – 25/64 inch) with a flowing tubing head pressure of 26 atmospheres (377 psi). The oil has an API gravity of 38 degrees and no water is being produced. The well is now being placed on oil production and the gas tied into the nearby local gas grid. Sales agreements are currently being finalised and this well will add immediately to Tethys’ cash flow. There are other workover candidates on the Beshtentak field which has gross prospective resources of 11.7 million barrels of oil and 16.1 billion cubic feet (0.23 billion cubic metres) of gas as quoted by the Company’s independent reserves and resources assessment effective December 31, 2010.
Graham Wall, Chief Operating Officer of Tethys, commented, “We are very pleased with the performance of this well. By applying more modern techniques and technology we have achieved good oil flow at low cost adding immediately to our cash flow. We are working on a short-term program to convert further prospective resources into reserves. We have our own trucking capacity available in the country and we are planning for further work on the field once the results of this well are fully analysed.”
Elsewhere in Tajikistan, the testing programme on the East Olimtoi EOL09 exploration oil discovery is continuing with acidisation about to be carried out on the Upper Bukhara/Lower Alai carbonate sequence. Initial results from this work should be available early in November, but transportation and logistics issues have slowed down the arrival in country of the equipment required to nitrogen lift this well in order to achieve optimum test performance. It is expected that this equipment should be in Tajikistan in early November.
The Persea PER01 exploration well is now drilling ahead after a short period of suspension waiting on additional casing to arrive in country. The well is currently at a depth of 1,573 metres and is expected to reach total depth of 2,700 metres. This well is targeting a four-way dip closed prospect at Alai and Bukhara levels close to the town of Kurgon-Teppa. If successful this well could be brought on stream quickly being in an easily accessible area with infrastructure.
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. The presence of potential hydrocarbon-bearing zones does not mean that commercial hydrocarbons will be obtained.
For further information, please contact:
Tethys Petroleum Limited
Vice President Investor Relations
Office: +1 416 572 2065
+1 416 572 2201 (FAX)
Mobile site: m.tethyspetroleum.com
In Europe: Tethys Petroleum Limited
Vice President Corporate Communications
Office: +44 1481 725911
+44 1481 725922 (FAX)
In Asia‐Pacific: Quam IR
Office phone/fax: +852 2217 2999
SOURCE: Tethys Petroleum Limited