www.tethyspetroleum.com
Tethys Petroleum Limited's strategy is to create shareholder value by building an oil and gas exploration and production company focused on Central Asia in areas with substantial oil and gas potential, building on the strengths of its management team and with a mix of short-term cash flow and upside potential. Currently Tethys has projects in Kazakhstan, Tajikistan and most recently Uzbekistan. Tethys is listed on the Toronto Stock Exchange in Canada and on the Kazakhstan Stock Exchange (KASE: GG_TPL_)
Tethys announces pre-acidized flow rate of 520 bpd at AKD05 Doris well
Central Asia-focused Tethys Petroleum (TSE:TPL) announced Thursday its Doris appraisal well in eastern Kazakhstan now has a steady flow rate of 520 barrels of oil per day (bopd), before acidization. The well, labeled AKD05, is flowing clean oil, and it is planned to acidize the zone soon, which is expected to significantly increase production, the company said. The acidization, a process that causes the surrounding rock bed to crack, increasing oil flow, is planned to begin in the next two weeks. After acidization, the well will be put on extended test production. "The indicated primary reservoir quality is good, which is positive for the future development of this zone," said VP of petroleum development, Mark Sarssam. "We look forward to conducting the acid job now and are hopeful that this will have a significantly positive impact, as it did in the AKD01 well." Tethys also noted the presence of potentially oil-bearing sandstones in the Lower Cretaceous section of the Doris well. However, these intervals won't be tested in the near future, as the well is intended to evaluate the deeper Upper Jurassic carbonate zone. The UK-based company also reported operational updates to its Dero appraisal well, labeled AKD04, where the Upper Jurassic carbonate interval was targeted here to evaluate whether the oil-water contact would be deeper in this area, which is separated from the Doris structure by a fault. However, a mixture of oil and water was obtained on test, indicating that the well is close to the oil-water contact and that the fault does not seal. Currently, the Dero well is producing non-commercial oil, but sand interval testing is planned, Tethys said. "The results from these two appraisal wells have provided additional production for sale and provided valuable information for the future appraisal," said COO Graham Wall. The location of the next Doris well, AKD06, has been selected based on area mapping. Operations are expected to commence within the next two weeks, with total depth planned to be reached in September. More appraisal work is being done to attain further locations. Meanwhile, Tethys' Kalypso exploration well, labeled KBD01, has been drilled to a depth of 3,064 metres, with the total depth of between 4,000 and 4,500 metres expected to be reached in August. The construction on the second phase of the company's Doris pilot oil production project facility, which the AKD05 Doris well is already tied in to, is nearly complete. The company is awaiting final approval from the Kazakh government. Under phase one of the facility, oil production for sales continues to rise, with production over 1,200 bopd in June. The comissioning of the facilities, the imminent delivery of more trucks, and the completion of the oil rail loading terminal, set for the fourth quarter, is expected to further increase production, halve trucking distance and increase margins, Tethys said. The oil and gas exploration company's stock on the Toronto Stock Exchange rose 2.86% to trade at $1.08 per share as of 11:35 am EDT on Thursday.
