Drilling Commences at Tajikstani Well

Tethys announced that drilling operations had commenced on the East Komsomolsk KOM201 appraisal well.

The KOM201 well is designed to appraise the eastern portion of the Komsomolsk gas field, which lies beneath the northern part of Dushanbe, the capital city of Tajikistan. It is being drilled by Tethys' ZJ30 rig "Tykhe," and is a deviated well intended to intersect several reservoir intervals but primarily the Jurassic carbonate reservoir. The planned total depth of the well is 2,480 metres with a horizontal displacement to the south. It is expected that drilling operations will be completed within approximately 60 days. This well is being drilled to the north east of the KOM200 well that achieved a stable flow of gas but requires further work to properly test the well following the drillstring becoming stuck. Tethys plans to recommence work on KOM200 after the completion of KOM201.

An independent reserve and resources report effective December 31, 2009 gave for the Komsomolsk field gross 3P reserves of some 2.9 billion cubic feet (Bcf) of natural gas plus mid-case gross unrisked contingent and prospective resources of 17.3 and 57.7 Bcf respectively. Any success on this well would most likely move some of the resources into the reserves category. This field lies under Dushanbe and has existing pipeline infrastructure in place. The surface location of the KOM201 well is close to the large "Tojikcement" cement plant, one of the significant gas consumers in the area. Tethys believes that current natural gas prices in the Dushanbe area are approximately US $6.17 per thousand cubic feet (US $218 per thousand cubic meters).

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