Tethys announced that its wholly owned Kazakh subsidiary, TethysAralGaz LLP ("TAG"), has received permission from the Ministry of Oil & Gas of the Republic of Kazakhstan ("MOG") to extend the Akkulka Exploration Contract (the "Contract") for another two years, from March 10, 2011 to March 10, 2013 (subject to certain routine amendments to the Contract). The MOG have extended the Contract to enable detailed appraisal of the commercial discovery of oil at AKD01 ("Doris") along with further exploration in the Contract area.
George Mirtskhulava, General Director of TethysAralGaz, commented, "We are very pleased to have been given this permission by the MOG to extend the period of the Akkulka Contract which the State was under no obligation to grant. This extension will allow the company further time to complete the appraisal program on the exciting Doris oil discovery and also to complete the exploration program in the area, which is already underway, and appraise any potential discoveries we find. We are committed to appraising Doris as soon as possible and as such this extension will not slow down our busy program this year but it does give us comfort that we will fully maximize the value of this important discovery and any additional exploration success we may have on the block. The MOG are keen to see us fully appraise our commercial oil discovery and we believe the granting of the extension is a further illustration that the Kazakh authorities encourage and assist oil and gas companies that have fulfilled their obligations and also have demonstrated progress. We look forward to continued success!"
Dr David Robson, Chairman, President and Chief Executive Officer of Tethys, added, "I am very pleased that the MOG have agreed this extension to enable us to move forward with this program in a technically sensible manner, not constrained by time pressures, so that we can hopefully prove up a substantial oil deposit and develop that deposit in an effective manner for our company. This is a potentially large field and requires a proper appraisal program and we will ensure this program delineates the limits of the field to enable proper and efficient planning of the development."
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