Tethys Petroleum Says Kyzyloi Pipeline Tie-in Almost Complete

Tethys provided an update on progress with its Kyzyloi gas field development in Kazakhstan, announcing that the tie-in of its Kyzyloi gas field into the Bukhara-Urals gas trunkline is now almost completed.

The Kyzyloi export pipelines are being tied-in to the major Bukhara-Urals gas trunkline system approximately 0.56 mile (900 meters) from the end of the Kyzyloi line at TPL's compressor station. Two 12.8 inch (325 mm) high pressure (809 psi (55 atmosphere) working pressure) lines connect the compressor station to the two 40.2 inch (1,020 mm) Bukhara-Urals trunklines and the tie-in of the first line has now been successfully completed, with the second tie-in currently being undertaken and which should be completed this coming weekend. To accomplish this tie-in the gas was evacuated from a 16.25-mile (26 km) section of the major trunklines and a special tee-piece inserted to take the Kyzyloi gas. TPL specialists have been working closely with specialists from the pipeline owners, Intergas Central Asia (part of the State company KazTransGas), and this logistically challenging tie-in is now almost completed. The work was delayed slightly due to essential maintenance work being carried out on the major trunkline system by Intergas Central Asia in advance of the forthcoming winter. This completes all of the engineering and construction work on Phase I of the Kyzyloi development and gas can now be pumped into the trunkline, however final certification is required before gas sales can commence. The required governmental commission is now expected to commence its work at Kyzyloi next week to inspect the wells, field facilities, pipeline and compressor station, and given a positive review, TPL should be in a position to produce gas by the end of this month. TPL's gas buyer is ready to take the gas and gas sales will commence once the commission has confirmed production can start and space is allocated in the system. Given this, TPL is hopeful that gas sales will commence early next month.

In the surrounding Akkulka exploration area the gas exploration program is continuing as planned with the AKK12 well (which is being drilled east-south-east of the recently successful AKK11 exploration well) currently drilling ahead towards the target zone. Initial results from this well are expected in the next two weeks.

Dr David Robson, Chairman, President and Chief Executive Officer of Tethys, commented, "With completion of the tie-in to the major Bukhara-Urals trunklines, the Kyzyloi field will be ready to commence production. This tie-in to one of Central Asia's major export pipeline systems is a significant achievement and secures substantial capacity for gas from Kyzyloi, our recent Akkulka gas discoveries, and future discoveries. I must congratulate our specialists and those from Intergas Central Asia for their hard work on this complex and important tie-in. I now look forward to a positive review from the governmental commission and to the commencement of gas sales."

TPL is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republic of Kazakhstan and more recently the Republic of Tajikistan. 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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