ALMATY, KAZAKHSTAN -- (Marketwired) -- 06/19/13 -- Tethys Petroleum Limited ("Tethys") (TSX: TPL)(LSE: TPL), the oil and gas exploration and production company focused on Central Asia, today announced its work programme in Kazakhstan for the second half of 2013.
Forward Work Programme:
-- AKD08 ("Doto") Exploration well to spud in early August-- Further oil exploration wells planned after Doto results-- Testing programme on suspended oil wells-- Two gas well workovers planned-- Up to five new shallow gas wells to be drilled near the Akkulka Block-- Kalypso well to be stimulated and tested in Q3-- 2D Seismic planned and crew mobilising for the Kul-Bas Block-- 3D Seismic planned for the near future in the Akkulka Block-- Further seismic will help improve subsurface understanding in both Kul- Bas and Akkulka to better focus the longer-term programme.-- Aral Oil Terminal ("AOT") expansion adds 12,500 barrels of storage capacity-- Total CAPEX for the programme estimated at approximately USD20.4 million
Dr. David Robson, Executive Chairman and President of Tethys, commented:
"The second half of the year will see us implement a busy and active programme in Kazakhstan. The combination of new exploration, testing of existing wells and workovers will move Tethys closer to exploiting the high potential of its gas and liquids portfolio, at a modest cost for shareholders. Further seismic will help us improve subsurface understanding in Kul-Bas and Akkulka to focus our longer-term programme as we continue to be excited by the upside and prospectivity of the area."
A location for The AKD08 ("Doto") Exploration well has been finalized to the south-west of the producing Doris field and is designed to target both the Upper Jurassic Carbonate and Lower Cretaceous sandstone sequences as proven in Doris. The Doto prospect has 22 million barrels gross mean unrisked recoverable prospective oil resources attributed to it (Gustavson & Associates).
The well will be spudded in early August and is forecast to take approximately 45 days to drill to a planned total depth of 2,420 metres using Tethys' own ZJ70 "Telesto" rig.
Following on from AKD08 the Company has plans to drill additional exploration targets in the Akkulka and Kul-Bas licences, further information on these targets will be provided in due course.
A number of progressive cavity pumps are being purchased to carry out a testing programme on several suspended oil wells. These pumps should enable definition of the ultimate potential of these wells which was not possible during the initial testing due to the lack of available lifting capacity at that time. These wells include AKD02, 03 and 07 and if successful these wells could be brought on production quickly.
Tethys has re-focused some of its investment into gas development after the effective doubling of the realised gas price in January of this year to US$65 from US$32.5 per 1,000 cubic metres. The new Kazakhstan-China gas trunkline under construction (planned to pass through Tethys' contract areas) will provide an additional commercialization route and a further upside to the price.