DUSHANBE, TAJIKISTAN, Jan 09, 2012 (MARKETWIRE via COMTEX) –Tethys Petroleum Limited (“Tethys” or the “Company”) (TSX: TPL)(LSE: TPL) today provided an update on its activities in Tajikistan and also gave a brief update on oil transportation in Kazakhstan.
At the Beshtentak field, work is still ongoing on the BST20 well, which initially tested at rates in excess of 600 barrels of oil per day (bopd). This well is crestally located approximately half way along the field, which is some 12 km (8.8 miles) long. The initial production testing from this well indicated that it was draining a separate fault compartment to nearby wells, however recent production performance would indicate possible communication with the nearby BST103 well which is producing gas from the field for the city of Kulob, this gas being part of the “base level” production on the field assigned to the Tajik State. As a result the BST20 production is currently restricted and it is planned to acquire additional data to ascertain the extent of any possible communication and to ensure that the wells are not adversely affecting each other’s production. The well will now be further production tested on different regimes to obtain the necessary data to either place the well back on production immediately after the work is complete or else to endeavour to seal off any communication and then re-establish production. In this case it is likely that production rates will need to be restricted to lower levels. Meanwhile two further workover candidates have been identified in other parts of the field (away from existing producers), which are interpreted to contain remaining bypassed oil and gas and work is progressing to fully assess these interesting opportunities, including potentially the acquisition of downhole seismic data. In addition to conducting recompletion work on these two wells it is planned to locate potentially one or two new high angle or horizontal crestal development wells, which would have the potential to achieve higher production rates than those obtained from the BST20 well.
At Persea, the PER01 well is now cased and awaiting production testing of the Alai zone, which is potentially, hydrocarbon bearing from the wireline logs which were run on the well. This testing is likely to be carried out later in the year.
At East Olimtoi testing operations will continue on the EOL09 well with plans for stimulation of the Alai reservoir and plans to perforate two further zones. The coiled tubing unit necessary to optimally carry out this work is now in country but additional parts are still in transit from Uzbekistan and the unit is expected to be on-site within the next two months.
The initial analysis of the data from the aerial graviometry survey is now complete and these data reveal several attractive areas, which confirm the potential presence of very large deep sub-salt prospects within the Bokhtar Production Sharing Contract (“PSC”) Area. Further analysis is required to firm up these data to come up with a more detailed forward exploration plan. As previously mentioned, Tethys is seeking a farm-in partner to work with the Company on this high potential deep exploration programme. Tethys now owns an 85% interest in the Bokhtar PSC following the recent acquisition of an additional 34% interest from its partner in the project.
Briefly, in Kazakhstan the weather has improved and trucking of oil to Emba has now recommenced with only a short break. It is expected that production will average 2,300 to 2,500 bopd this month. Work is nearly complete on the new rail-loading terminal (which will enable a significant increase in oil production) and it is expected that it will be officially inaugurated later this month. This terminal will allow production to be increased to some 4,000 bopd.
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.
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, the risk that the Company may be unable to complete its data and drilling programs within the timeframes contemplated.
Tethys Petroleum Limited
Sabin Rossi, – All Investor Queries
Vice President Investor Relations
Office: +1 416-941-1257
+1 416-947-0167 (FAX)
Tethys Petroleum Limited
Veronica Seymour, – All Media Queries
Vice President Corporate Communications
Office: +44 1481 725911
+44 1481 725922 (FAX)
FirstEnergy Capital LLP.
Hugh Sanderson / David Van Erp +44 207 448 0200
Seymour Pierce Richard Redmayne / Jonathan Wright / Stewart Dickson Office: +44 207 107 8000
Quam IR Anita Wan
Office phone/fax: +852 2217 2999
FTI Consulting – London:
Ben Brewerton / Edward Westropp
Office: +44 207 831 3113
SOURCE: Tethys Petroleum Limited