Tethys Oil Awarded Exploration License in Greater Gotland

The Swedish Mining Inspector has granted Tethys' application to explore for oil and gaseous hydrocarbons on the island of Gotland. The licence, called "Gotland Större" (Greater Gotland), covers an area of almost 54,000 hectares of the northern part of the Baltic island. The licence is valid for three years and is subject to customary conditions relating to work programme and environmental assessments.

Oil has previously been produced on Gotland, proving the existence of a viable petroleum system within the licence area. Production has occurred from Ordovician reef structures that can be traced along a trend line originating on the other side of the Baltic Sea and terminating on Gotland. A limited review of historic data suggests that only a limited number of the reeves present on Gotland have actually been mapped and drilled.

It is Tethys' intention to conduct additional work based on historic data and supplemented by new technology such as modern gravimetry and radar technology, to further the understanding of the distribution of the reeves. At a later stage Tethys may also propose to do a geochemical ground study to further complement the database. A geochemical survey uses small samples of topsoil collected from a number of points that are then screened and compared with samples taken over known hydrocarbon reservoirs.

If the results from the work programme are encouraging, Tethys may, in the future, submit applications to relevant authorities and land owners requesting permission to collect seismic data and in the end conduct exploratory drilling.

"We are extremely pleased to have been awarded this licence and be given the opportunity to further investigate Sweden's only proven oil region. We look forward to expand on our plans at information meetings to be held early next year on Gotland," comments Magnus Nordin, Tethys Oil AB Managing Director.