Tethys Petroleum (TSX: TPL) is very optimistic about its oil discovery on the Akkulka Block in Kazakhstan after tests showed “extremely good permeability” and large connected volume of 29 million stock tank barrels, indicating a high quality laterally extensive reservoir.
Further testing is now required to confirm the lateral extent of the reservoir, although a similar zone has been interpreted in a previously drilled well over 10 miles to the west.
“These test analyses show extremely good reservoir properties, reservoir continuity and production potential, particularly in the upper Sandstone interval. This data will now be put into our appraisal model and it bodes extremely well for the effective development of this oil discovery with a limited number of wells and showing a potentially significant areal extent,” said chief operating officer Graham Wall.
Tethys also laid out its plans for appraisal of the AKD01 oil discovery and further exploration in the surrounding area, which are subject to approval by the Kazakh authorities. The company plans to drill at least two appraisal wells on the AKD01 oil discovery to evaluate and establish the size and potential and provide the necessary data to obtain a production contract.
The location of the first appraisal well (AKD02) has already been chosen on existing seismic data and this well is expected to commence drilling in April 2010.
Tethys also plans to commence a seismic program over the Doris discovery in the second quarter, which will include a 3D seismic survey and additional 2D seismic lines.
The company added that risk on the prospects has been significantly reduced after it identified several other prospects in the area similar to Doris and proved a hydrocarbon system at the deeper levels.
The rig is currently being demobilised from the AKD01 location to a prospect located in a similar structural position 31 miles to the north-west which has been named Daphne. This well is expected to commence operations in late April and is planned to target the Cretaceous, Jurassic, Triassic and Permo-Carboniferous intervals, after which the company plans to undertake further exploration dirlling on the large surrounding Kul-Bas block.