Tethys Identifies 744 Mmboe in Kazakhstan Deep Targets

Analysis of drilling and seismic data over the Akkulka and Kul-Bas areas in Kazakhstan has identified a number of deep targets which have the potential for substantial oil and gas in Triassic and Jurassic sequences on the flanks of buried structural highs.

Independent analysis carried out for the Tethys IPO earlier this year estimated the un-risked exploration potential for some 744 million barrel oil equivalent (MMBOE) in these prospects. Additional seismic and data acquired last summer have firmed up this play, and also highlighted the potential of the structural high for additional resources.

Tethys has been investigating the possibility of re-entering previously drilled wells which did not reach the target, and which might be sidetracked to test these deeper plays. The first of these re-entry's, on the Akkulka G-6 well, is currently proceeding, with a new wellhead being installed prior to pressure testing of the casing and well integrity.

This work will be followed by an offset vertical seismic profile (VSP) to firm up the target location for any sidetrack. If it is possible to re-use these wells significant cost and time savings would be possible. Drilling is planned to commence at the end of May 2008 using Tethys' recently ordered ZJ70/4500L 2,000 hp deep drilling rig, the construction of which should be completed by April 2008.

In Tajikistan work has commenced on the rehabilitation of the first two wells on the Beshtentak oilfield under the terms of the recently signed Investment Operating Agreement (IOA). Because of the lack of appropriate available oilfield equipment in the country, work is currently underway to source and transport such equipment to the Tajikistan operating area. Meanwhile negotiations continue with the Government and Parlimentary Committees on the finalization of the planned Production Sharing Agreement (PSA) for the Kulob Area of Southern Tajikistan.