Tethys Petroleum's Exploration Well AKK14 Tests Over 13 MMcf/d

Tethys Petroleum Limited announced that the AKK14 exploration well had tested gas from two intervals at a combined rate of 13.3 million cubic feet (MMcf) of gas per day, the highest rate tested on a well by Tethys to date.

The AKK14 well was drilled in the central part of the Akkulka Block on a separate prospect between the AKK13 and AKK04 discoveries and targeted both the Kyzyloi Sand interval (the productive reservoir in Tethys' nearby Kyzyloi Field) and the deeper Tasaran Sand interval. To date the Tasaran has not been deemed to be productive in the area and most of the older shallow gas wells have not targeted this interval. However analysis of the seismic data acquired by Tethys last year over the area and subsequent processing to highlight possible gas bearing zones, led Tethys to drill the AKK14 well not only to explore this new Kyzyloi structure but also the Tasaran as a secondary target a this location.

The well reached a total depth of 2,152 feet having encountered the top of the Tasaran Sand at 1,985 feet and the Kyzyloi Sand at 1,608 feet. Evaluation of the wireline log data indicated that gas was present in both zones and as such two separate production tests were carried out on the well.

The Tasaran Sand interval flowed gas at a stabilised rate of 7.5 MMcf/d (212 Mcm/d) with a flowing tubing head pressure (FTHP) of 163 psig (11.1 atm) on a 76/64ths inch (30 mm) choke. The Kyzyloi Sand interval flowed gas at a stabilised rate of 5.8 MMcf/d (164 Mcm/d) with an FTHP of 152 psig (10.4 atm) on a 76/64ths inch choke. Further work will be required to ascertain the extent of the deposit.

This is the first commercial discovery of gas made in the Tasaran Sand in the area and opens up a new play over the Company's Akkulka and Kul-Bas Blocks. The Tasaran is made up of several units of thick (up to 20 feet), blocky, medium grained sandstones and are more conventional reservoirs than the generally thinner and finer grained overlying Kyzyloi sandstone unit. In the light of the Tasaran test Tethys is re-examining existing seismic and in conjunction with revised petrophysics has outlined several potential untested Tasaran zones in older wells, as well as new leads, which will form part of the focus for further exploration for this play within Akkulka and Kul-Bas areas later in the year.

"This is a exciting discovery - our most successful well to date! Not only have we continued to discover gas in our primary Kyzyloi target, we have now opened up gas potential in a whole new reservoir with considerable upside," Dr David Robson, chairman, president and CEO. "The decision to acquire more seismic over the Akkulka and Kul-Bas areas has resulted in a more comprehensive set of data, the results of which we are now seeing through the drill-bit and this discovery opens up a new high potential play in our acreage. Recent announcements by GazProm that they will pay European prices for Central Asian gas means higher prices in the region in 2009, which should directly benefit us when our phase two development comes on production in Q4 2008, and with further development of new discoveries such as the new Tasaran gas play."