Tethys Provides Drilling Update in Tajikistan

Source: www.gulfoilandgas.com 5/17/2010, Location: Asia

Tethys Petroleum Limited gave drilling updates on its wells in Tajikistan. The Komsomolsk KOM200 gas appraisal well reached the top of the Jurassic sequence and hydrocarbons were indicated both whilst drilling and on electric logs, and an open hole flowback test was carried out which resulted in a stable gas flow, albeit accompanied by water from water bearing zones in the large open hole section.

However the drillstring then became stuck, probably due to differential pressures, and to date the Company has not been successful in retrieving the string. Work is now on hold for KOM200 but has commenced towards the drilling of a new well (KOM201) to the north east of KOM200. It is planned to come back to KOM200 once specialist equipment has arrived in Tajikistan and KOM201 is completed.

Tethys' ZJ30 drilling rig "Tykhe" has now been moved to the KOM201 location and it is expected that drilling of this well will commence towards the end of May. The surface location of KOM201 is located to the NE of the surface location of KOM200 close to the Tojikcement plant, one of the largest cement plants in the region and a significant gas consumer. The well will be drilled as a directional well with its planned target being to the SSE of the surface location under the northern suburbs of the capital city of Dushanbe.

Work on the East Olimtoi exploration well EOL09 is currently suspended whilst additional equipment is mobilised to Tajikistan to continue drilling to the target zone which is some 1,000 metres from the current depth of 2,941 metres. The Company is continuing with its seismic survey programme in Tajikistan with the aim of identifying other targets and is looking at other drilling possibilities. The Company is actively seeking partners in certain projects, preferably strategic partners, and has begun a farm-out process with respect to certain of its Tajik assets having held a data room for interested parties.

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


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