Tethys Petroleum has provided an operational update on its activities in Kazakhstan and Tajikistan.
Exploration well KUL03 has now reached a TD of 786 metres (2,579 feet) and casing is being run. There are indications of gas in the well but there is no confirmation as yet that it will be in commercial quantities. This well is targeting a prospect in the north-west of the Kul-Bas block some 90 km (62 miles) north-north west of the recent AKK16 well. This is testing a different reservoir to that which is currently producing in Kyzyloi and the presence of gas is very promising, being located so far from existing discoveries.
The deep exploration well AKD01 is almost ready to commence drilling with the rig now erected on site, with a planned spud before year-end once the drill crew are available from KUL03. This well is targeting large prospective resources of oil/gas condensate in the Jurassic/Triassic and will be drilled with Tethys's own rig "Telesto", at a considerable cost saving against hiring a third party rig.
Maintenance by InterGas Central Asia is currently being carried out on the Bukhara-Urals trunk line to the north of Tethys's tie-in point which has resulted in the trunk-line being temporarily shut down. Tethys has stopped Kyzyloi production until this maintenance has been completed which should be in the next few weeks. Tethys will use this time to carry out maintenance on its own compressors on the gas line. This has also enabled Tethys to begin installation of compression for Akkulka Phase 2 Development with the compressors recently arriving on site and the compressor installation engineers now arriving. This process would have involved stopping production over much of this period anyway due to safety requirements.
Kulob Petroleum Limited, the Contractor under the Bokhtar PSC and 100% subsidiary of Tethys, has signed a contract to acquire up to 1,000 km of seismic within its PSC area with the Kazakh Geophysical Company ("KazGeo"). It is expected that KazGeo will mobilize equipment to Tajikistan in early January 2009 to commence seismic activities. This satisfies part of the minimum work program under the Bokhtar PSC and will satisfy all of the minimum work program funding requirements until year-end 2009. This seismic will be focused on existing discoveries and new exploration targets.
Workover operations are underway on the Komsomolsk gas field north of Dushanbe, with the intention of producing gas in the short term. KOM180, the first well in the workover program, has been successfully re-entered and is currently undergoing testing with an initial gas flow on a small 4mm choke (10/64ths of an inch) of 10 thousand cubic metres per day (353 thousand cubic feet per day). Additional testing will be carried out over the next few weeks on larger choke sizes. There are several targets on the Komsomolsk gas field, which has existing gas pipeline infrastructure and is in close proximity to the capital's gas grid.
Workover operations are also commencing on the Khoja Sartez gas condensate field near Kulob where it is planned to re-enter the HJZ22 well with the workover rig at the site and PNN logs already run. Tethys believes the best potential for oil workovers are in the Beshtentak oil field in the Baljuvon region and the plan is to move there after the Komsomolsk program. It was decided to first target wells nearer the capital due to the forecast gas shortages there this winter.
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