Tethys Becomes Paying Partner for Tafejjart-1 Onshore Morocco
The Tafejjart-1 well (TAJ-1) in the Bouanane license, onshore Morocco, has reached a depth of 2,585 meters below ground level. The drilling target is expected to be reached within the next few hundred meters. According to the operator, the estimated total expenditures in the license have now exceeded MUSD 12 and Tethys is now a paying partner.
The formation at current depth of 2,585 meters is the Silurian shales. Current operation is to set 9 5/8 inch (244 mm) casing at this depth. Drilling will then proceed to the target formations, potentially gas bearing Ordovician sandstones, which are expected within the next few hundred meters.
Tethys is carried by the operator, Dana Petroleum, through the first MUSD 12 of total expenditure in the license. According to the operator, the estimated total expenditures in the license have now exceeded MUSD 12. Under the existing agreements, once total expenditures exceed MUSD 12, Tethys becomes a paying partner. Tethys has a 12.5% net interest in the license and is under the existing agreements liable for 16.66% of expenditures exceeding MUSD12. Partners in the license are Dana Petroleum with 50% net interest, Eastern Petroleum with 12.5% net interest, and ONHYM (government company) with 25% carried interest.
"Besides Tethys' core operations in our Omani appraisal operations, we are thrilled to participate in a classical wildcat well as this one. This is a project with a huge upside, and although the MUSD 12 carry may now be exceeded we still get to participate in an exciting well paying only a fraction of the total well costs," commented Tethys' Managing Director Magnus Nordin.
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