Tethys Petroleum announced it has received permission for the extension of the Akkulka Exploration Contract in Kazakhstan where the Company is currently appraising the high potential Doris oil discovery and also where it has several exciting exploration targets.
- Two year extension to comprehensively appraise Doris commercial oil discovery and enable further high impact exploration on the Akkulka Block
- Retention of exploration prospects recently identified using the recently interpreted 3D and 2D seismic data
- Several prospects identified on seismic data including Dodone, Daphne and prospects at Triassic level where oil shows have already been encountered
- New Resource report due May 2012 including Doris and recently identified prospects
- Next appraisal / exploration well to spud mid-year to target channel sand system and high potential Dyna sand prospect
Tethys' wholly owned Kazakh subsidiary, TethysAralGaz LLP (TAG), has received permission from the Ministry of Oil & Gas of the Republic of Kazakhstan (MOG) to extend the Akkulka Exploration Contract for a further two years from March 10, 2013 to March 10, 2015 (subject to certain routine amendments to the Contract).
The MOG has extended the Contract to enable more comprehensive appraisal of the commercial discovery of oil at AKD01 (Doris) and exploration of further identified prospects in the Contract area.
Dr David Robson, Chairman, President and Chief Executive Officer of Tethys, added:
"This important extension will enable us to move forward on additional attractive exploration/appraisal prospects which have been identified using the recently interpreted 3D and 2D seismic data. This is extremely important to the Company as it gives us the potential to explore for the considerable resources which we believe exist within the large Akkulka Block as well as to further develop and appraise the Doris oilfield. I thank the Ministry of Oil & Gas for granting this extension which I believe demonstrates the strength of our Kazakh team and the positive approach of the Ministry of Oil & Gas to the exploration of prospective areas within Kazakhstan".
The next appraisal/exploration well, AKD07, is expected to spud mid-year 2012 and is forecast to take approximately 60 days to drill after which logs will be run and the well will be completed. Based on positive results from the logs, a testing programme will then be carried out. The well will be located to the south-east of the original AKD01 (Doris) discovery well and will target 3P reserves at the Cretaceous Aptian sand level in what is believed to be a channel sand system, whilst simultaneously targeting an exciting exploration prospect (named "Dyna"), which has been identified on the recently acquired seismic data from a bright amplitude anomaly at a slightly shallower level, and is interpreted to be part of a different, larger sand fan system. The prospective resource for this new target will be disclosed after the completion of a new independent Kazakhstan Resource Report, which is expected in Q2 2012.
Additional exploration/appraisal prospects have been identified using the recently interpreted 3D and 2D data. This data has led to the identification of a number of other attractive exploration prospects at the Doris reservoir levels and other horizons. All these will be included in the new resource report.
To date, over 13,000 bopd have been tested from exploration and appraisal wells in and around the Doris accumulation and it is believed that a sustainable production level of 5 - 6,000 bopd can realistically be achieved from these wells. Once the Phase 2 of AOT has been completed, plans will be implemented to increase production up to this level in H2 2012.