BOZOI, KAZAKHSTAN--(Marketwired - Sep 12, 2013) - Tethys Petroleum Limited ("Tethys" or "the Company" (TPL.TO) (TPL.L), the E&P Company focused on Central Asia and the Caspian Region, announces that it has commenced drilling of the AKD08 ("Doto") Exploration well in Kazakhstan.
The AKD08 ("Doto") Exploration well is located to the south-west of the Company's producing Doris field and north of its Dione oil discovery in Kazakhstan. The well is designed to target several potential zones, including the Lower Cretaceous sandstone and Upper Jurassic carbonate sequences as proven in Doris, and also the deeper Triassic sequence which gave significant hydrocarbon shows in nearby wells, including the Company's AKD01 well (Doris oil discovery). Prospectivity may also exist in the Jurassic sandstone sequence which flowed oil in the Dione (AKD03) well.
The Doto prospect has 22 million barrels gross mean unrisked recoverable prospective oil resources attributed to it (Gustavson & Associates, April 30, 2012) in the Cretaceous and Upper Jurassic sequences. The deeper Triassic sequence has not yet been independently assessed, and as such the Company is currently unable to quote a reportable resource estimate for this horizon. However, the Company believes it to be an attractive prospect.
The Doto well is expected to take approximately 70 days to drill to a planned total depth of 3,500 metres using Tethys' own ZJ70 "Telesto" rig.
The AKD09 ("Dexa") Exploration well is now expected to commence drilling in mid October due to a minor delay in mobilisation of equipment and integration of services with the Doto well.
Graham Wall, Chief Operating Officer of Tethys, commented, "We are very pleased to have started drilling on the Doto well commencing our exciting drilling programme in Kazakhstan. The Doto well is targeting several zones which have been either commercially proven or shown to be promising on adjacent structures. The timing of the Dexa Exploration well is being co-ordinated with the drilling of the Doto well in order to optimise resources, thereby reducing costs."
The references in this press release to "prospective resources" means those quantities of petroleum estimated, as of April 30, 2012, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. There is no certainty that any portion of these resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of these resources.
The resources estimates contained or referred to are estimates only and are not meant to provide a determination as to the volume or value of hydrocarbons attributable to the Company's properties. There are numerous uncertainties inherent in estimating quantities of resources and cash flows that may be derived, including many factors that are beyond the control of the Company. The following is a non-exhaustive list of factors which may have a significant impact on the above estimates of prospective resources: despite the classification that they are as yet undiscovered but may be potentially recoverable the Company may be unable to carry out the development or their potential recovery; the activity may not be economically viable; the Company may not have sufficient capital or time to develop them; there may be no market or transportation routes for the production; legal, contractual, environmental and governmental concerns might not allow for the recovery being undertaken; reservoir characteristics might prevent recovery. The recovery of the resources is subject to the following risks and uncertainties: market fluctuations, the proximity and capacity of oil and gas pipelines and processing equipment, government regulation, political issues, export issues, competing suppliers, operational issues (exploration, production, pricing, marketing and transportation), extensive controls and regulations imposed by various levels of government, lack of capital or income, the ability to drill productive wells at acceptable costs, the uncertainty of drilling operations, factors such as delays, accidents, adverse weather conditions, and the availability of drilling rigs and the delivery of equipment.
The Company's interest in the Doto and Dexa wells located in the North Ustyurt basin in Kazakhstan, is subject to the terms of the Akkulka Exploration Licence and Contract, which are described on pages 32, 33, 67 and 68 of the Company's Annual Information Form for the year ended December 31, 2012 available on sedar.com. The hydrocarbon product types reasonably expected from these wells are oil, natural gas and non -associated gas.
A barrel of oil equivalent ("boe") conversion ratio of 6,000 cubic feet (169.9 cubic metres) of natural gas = 1 barrel of oil has been used and is based on the standard energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
This press release contains "forward-looking information" which include statements related to the expected drilling period of the exploration wells. Such forward-looking statements reflect our current views with respect to future events and are subject to certain assumptions, including the assumption that the 70-day period will be sufficient for drilling the exploration wells to depth. These forward looking statements are subject to risks and uncertainties, including the risk that the drilling period for the exploration wells will extend beyond 70 days because of operational and geological factors. See our Annual Information Form for the year ended December 31, 2012 for a description of risks and uncertainties relevant to our business, including our exploration activities. The "forward looking statements" contained herein speak only as of the date of this press release and, unless required by applicable law, the Company undertakes no obligation to publicly update or revise such information, whether as a result of new information, future events or otherwise.