Tethys Reports on Drilling Operations in Caspian Region

Akkulka Prospect
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Tethys Petroleum has provided an update on its drilling activities in Kazakhstan and Tajikistan.


Exploration well AKD01, which is the Company's first "deep" well in the Akkulka Block ("Akkulka") in Kazakhstan, is currently at a depth of 3,414 meters (11,200 feet) in what is interpreted to be the Triassic sequence. This well has targets in the Cretaceous/ Jurassic sequence and in the underlying Triassic sequence. Electric logs have now been run over the upper part of this interval and these logs have been independently interpreted. In parallel to the results of these logs, hydrocarbon indications were also observed during drilling.

Independent petrophysical analysis confirms the interpretation of moveable hydrocarbons in at least two zones in the Lower Cretaceous / Jurassic interval which may be oil and/or gas condensate. The large Urga gas condensate field (which lies to the south of the AKD01 well) in northern Uzbekistan produces from the Jurassic sequence in a similar structural position. Production testing is planned for these intervals once the well reaches total depth and it is planned to case this section prior to drilling ahead. Only after production testing can a definitive statement be made on the potential for commercial production of oil and/or gas from this well. Currently preparations are being made to clean the hole prior to running casing.

Oil and gas shows have also been evident whilst drilling the Triassic sequence, which is below the Jurassic sequence, but no significant reservoir intervals have yet been encountered. Now that these oil and gas shows have been encountered work is underway to evaluate the potential for deeper Triassic reservoirs and based on this the planned total depth for the well will be determined. The Triassic sequence is one of the major productive horizons in oilfields located in the Mangyshlak area to the south-west of Akkulka.
An independent resource report carried out in 2007 by McDaniel and Associates estimates that the deep structures in the Tethys licenses in Kazakhstan potentially contain up to 690 million barrels oil equivalent of un-risked mean prospective resources.


Operations continue on the East Komsomolsk well KOM200. After encountering a significant gas influx whilst drilling the upper section of this well work has been underway to kill the well and to stabilise it for drilling ahead. The gas influx is thought to be coming from a fracture tapping into the deeper potential gas reservoir (one of the targets for the well) and after some extensive work the well has been successfully killed, casing run and cemented and preparations are now been made to drill ahead.

East Olimtoi exploration well EOL09 is currently drilling ahead and is at a depth of 2,782 meters (9,127 feet), in the Neogene sequence. This well is being drilled in the south east part of the Bokhtar PSC area, south of Kulob and just to the north of the Panj river.


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