|By Marketwire .||
|October 12, 2012 02:00 AM EDT||
BOZOI, KAZAKHSTAN -- (Marketwire) -- 10/12/12 -- Tethys Petroleum Limited (TSX:TPL)(LSE:TPL) ("Tethys" or "the Company") today announced the preliminary results of exploration / appraisal well AKD07 drilled in the Akkulka Block in Kazakhstan. The initial drilling and electric log results show potential hydrocarbons in the Jurassic limestone sequence and lower down in a thin Jurassic sandstone near the current total depth of the well.
The "Dyna" sheet sand and the "Doris" channel sand were both present and of good quality but both have been interpreted as being water bearing. Drilling is now about to recommence on the well towards a planned total depth ("TD") of 2,750 metres in order to more fully assess the potential hydrocarbon bearing zones in the Upper Jurassic sand sequence.
The current total depth is 2,585 metres in the Upper Jurassic sequence with a thin potentially oil bearing sand having been encountered just above total depth. The Upper Jurassic limestone interval (which tested at 1,373 bopd in well AKD01 and 1,568 bopd in well AKD05, where it is completed as a producer) some 1.75 km and 1.8 km away respectively has a gross thickness of some 22 metres. Drilling and wireline log data indicate moveable hydrocarbons within this zone. This is approximately 30 metres deeper than the previous lowest known oil in the nearby wells within that horizon and if confirmed to be oil bearing would significantly increase the potential reserves at this level.
Further analysis of the log data on the Jurassic limestone is currently underway and drilling is about to recommence to a new planned TD of 2,750 metres in order to fully assess the potential of the Upper Jurassic sand interval. At this point a decision will be made on running casing and testing the well. It is expected that the new TD will be reached within the next week.
Dr. David Robson Executive Chairman and President of Tethys commented: "Although the Dyna and Doris sands were water bearing in this well the potential oil in the Jurassic limestone and the Jurassic sandstone sequence is encouraging, particularly with regard to the upside reserve potential. The good quality of the sheet and channel sands is also positive for further exploration in the area despite the trapping mechanism not working at this location.
We will obviously continue to assess this well as we drill towards the final TD and also assess the other prospects in the area. In parallel with this we are working hard to improve the efficiency of our oil export system and at reducing our cost base in Kazakhstan to more economically develop the Doris oilfield and adjacent deposits."
Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of 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.
This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to our operations. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions. See our Annual Information Form for the year ended December 31, 2011 for a description of risks and uncertainties relevant to our business, including our exploration activities.
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