Tethys Finds Gas

Tethys Petroleum Limited announced a new gas discovery with the results of the Akkulka AKK11 exploration well in Kazakhstan.

The AKK11 exploration well was drilled in the central part of the Akkulka block, south of the successful AKK09 well and to the south-west of the Central Akkulka AKK04 discovery well. AKK11, which was drilled to a total depth of 1,969 feet, tested dry gas at a stabilised rate of 7.9 MMcf/d, 223 Mcm/d from a 23 feet interval of Paleogene sandstones from 1,686 to 1,709 feet RKB through a 100/64 inch choke with a flowing tubing head pressure of 204 psig. The well is now undergoing final draw-down and pressure build-up tests prior to being suspended for future production.

The AKK11 exploration well is the first well to be drilled in a 10-well shallow exploration program using funds raised in the IPO in June 2007; this program is expected to be completed by June 2008. The A80 rig, which drilled AKK11, is now being moved to the AKK12 location where drilling is expected to commence shortly. AKK12 is located in an area determined by the newly acquired seismic data and is situated some 1.4 miles to the east-south-east of the AKK11 well with the objective to explore for further gas potential along the AKK11 ridge.

During the testing of AKK11 no pressure response was observed in the AKK09 well, confirming that the AKK11 and AKK09 structures are separate gas pools. The new seismic has further enhanced the prospectivity of the Central Akkulka area and, based on these data, a further exploration drilling location has been selected some 2.1 miles northwest of AKK09.

This location (named AKK13) will be drilled by the A80 drilling unit after completion of the AKK12 well, which is anticipated to be in November 2007.