BOZOI, KAZAKHSTAN, May 26, 2010 (MARKETWIRE via COMTEX) –Tethys Petroleum Limited (“Tethys” or the “Company” (TSX: TPL) is pleased to announce that gas production has resumed from the Kyzyloi gas field in Kazakhstan.
Intergas Central Asia (“ICA”), part of the Kazakh State company KazTransGas, informed the Company today that gas production into the Bukhara-Urals (“BUP”) transcontinental gas trunkline system could recommence after ICA had successfully resolved some technical issues on the system. Phase 1 gas production of the Kyzyloi/Akkulka gas development is now flowing from the Kyzyloi field at a rate of 500,000 cubic metres per day into the BUP at the Companies booster compression station (“BCS”) on the BUP, located some 23 km south of the Bozoi underground gas storage facility, where the gas is being sold under a long-term take or pay contract.
The Phase 2 gas production facilities (the Akkulka gas field) are fully completed with the initial wells being tied in and the BCS suitably upgraded to take the additional gas volumes, which are planned to approximately double Phase 1 production. Now that gas is flowing into the BUP negotiations with potential gas buyers can recommence on the sale of Phase 2 Akkulka gas although it may take some time to finalise a suitable contract and interim arrangements may need to be made.
Tethys understands that a further gas trunkline is under construction following the route Beineu-Bozoi-Kyzylorda-Shymkent where it would tie into the newly constructed Central Asia-China pipeline. This line passes close to Kyzyloi and Akkulka and once this system is fully operational Tethys should have further flexibility of gas offtake – either through the BUP or to eastern Kazakhstan and potentially China.
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, 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, 2010 and other corporate filings (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) info@tethyspetroleum.com www.tethyspetroleum.com In Kazakhstan PG Communications Ardak Akanov, Managing Director +7 (727) 272 8867, +7 (727) 272 8237, +7 (727) 272 7745 +7 (727) 272 8867, +7 (727) 272 8237, +7 (727) 272 7745 (FAX) development@pressclub.kz 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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