DUSHANBE, June 1, 2011, Asia-Plus — Tethys Petroleum Limited (Tethys) has issued a holding statement with regard to oil being encountered in its Tajik exploration well East Olimtoi EOL09 in order to ensure all pertinent information is available to the market and the Company”s stakeholders.
While drilling at a depth of 3,342 metres in sandstones of the Alai formation (a secondary target) there was a strong flow of live oil to the surface accompanied by 33% gas in the drilling mud. After closing of the blowout preventer the well was successfully stabilized and drilling operations have now recommenced.
The oil, which appears to be of medium density, flowed despite drilling with heavy mud (1.57 SG) reflecting a pressure of some 512 atmospheres in the reservoir.
The primary target for the well is the Paleogene Bukhara limestone formation and it is planned to set casing prior to entering this zone. The well is exploring an attractive salt induced structure and is planned to reach a total depth of some 3,800 metres.
The well is located in the south-east of Tethys” Contract area, south of the city of Kulob and only some 10 kilometers north-west of the Afghan border. The nearest oilfield in that region is the Beshtentak field some 75 kilometers to the northwest which produces oil from the Bukhara limestone.
Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in Kazakhstan, Tajikistan and Uzbekistan. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.
Two oil and gas basins exist in Tajikistan. In the north, the Ferghana Basin has produced oil since 1900 and the Tajik-Afghan Basin, an extension of the prolific Amu Darya Basin, lies in the southwest of the country. The Amu-Darya Basin has giant and supergiant fields in Turkmenistan and Uzbekistan and some of the largest fields in the world including the South Yolotan field in Turkmenistan, which is one of the five largest gas fields in the world. The Tajik portion of this basin offers similar geology and reservoirs making it a prized prospect for development. Tethys Petroleum is the first independent oil and gas exploration and production company to work within the Tajik portion of these basins.
The need for energy independence is a top priority in Tajikistan, with currently over 90% of oil and gas being imported from neighboring countries within Central Asia. The Tajik government has put a priority on the development of domestic resources and has welcomed Tethys Petroleum as a partner in its efforts.
The strategy for Tethys in Tajikistan is to develop shallow oil and gas potential for early cash flow whilst simultaneously acquiring seismic data and building a geological model with the intention of farming out the higher risk more expensive exploration targets to other oil and gas companies.
Tethys Petroleum owns 51% of Kulob Petroleum Limited, the 100% owner of the Bokhtar PSC, with the Operator being Tethys Services Tajikistan. The Company”s office in Tajikistan is located in Dushanbe.
