Tethys Petroleum Limited's strategy is to create shareholder value by building an oil and gas exploration and production company focused on Central Asia in areas with substantial oil and gas potential, building on the strengths of its management team and with a mix of short-term cash flow and upside potential. Currently Tethys has projects in Kazakhstan, Tajikistan and most recently Uzbekistan. Tethys is listed on the Toronto Stock Exchange in Canada and on the Kazakhstan Stock Exchange (KASE: GG_TPL_)
Tethys Petroleum places new well on production at North Urtabulak Field
Tethys Petroleum (“Tethys”) (TSX:TPL), which has enjoyed considerable success in recent months with the drill bit, reported that it had now placed its latest well on production. The NUR116 well, drilled on the North Urtabulak Field in Uzbekistan, was drilled into the Jurassic reef carbonate reservoir at depth of 2,484 meters.
During initial testing the well flowed at a rate of 610 barrels of oil per day (bodp) after acidisation. Graham Wall, COO of Tethys added that the company has witnessed varying rates in production between 402 and 610 bopd from the new well, which was due to fluctuating gas lift supply pressure.
With the addition of the new well, Tethys Petroleum’s gross production attributable under a Production Enhancement Contract is now over 2,000 bopd.
While news of the boost in production was well received, Tethys Petroleum also reported that it had shut-in several wells on the field to gain pressure data for a reservoir stimulation model. “One of the issues on the field at present is reduced gas lift pressure which is resulting in lower production rates than should be obtained,” the company noted. “This issue is currently being addressed.”
Meanwhile, in Tajikistan the Central Asia focused oil producer announced that it had signed an oil sales contract to purchase crude oil from its Beshtentak light oil field. Tethys recently completed a workover on well BST20 which is now producing approximately 50 bopd using a simple unmodified beam pump.
“Tethys’ specialists believe that a significant increase in production can be achieved by the installation of better and more efficient pumping equipment, and Tethys is in the process of ordering such equipment. There are a number of other wells which could be worked over on the Beshtentak field and work is now commencing on the BST85 well.”
Tethys also believes there is potential to monetize a gas cap on the field.
Mamuka Murjikneli, Tethys’ Regional Manager responsible for Tajikistan commented: “Although this is currently a small volume of production this marks an important step forward for our Tajik operations with our first oil sales contract. The price realised under this contract is over 60% of international prices for Brent crude with the untreated crude being collected by the buyer at the field. It is expected that margins would increase with an increase in the scale of production. We have a programme of further work on Beshtentak which should significantly increase our production rate and with the extremely good terms under our PSC we currently take some 91% of the production after the State take. This will encourage us to increase our investment in this small but potentially profitable short term cash flow project, and gives us further confidence to explore for and develop more oil prospects in Tajikistan where we currently identify over 130 fields and prospects in our very large (35,000 km2) Bokhtar PSC area.”
