Tethys Petroleum (“Tethys” or “the Company”) (TSX: TPL)(LSE: TPL) announces a significant increase in its reserves in oil and gas in Kazakhstan as reported in a new reserve report.
Total Net Oil and Gas Reserves (barrels of oil equivalent: BOE)
-- 1P (Proved) up 96%: 14.5 million BOE -- 2P (Proved + Probable) up 45%: 25.3 million BOE
Net Oil Reserves:
-- 1P (Proved) up 108%: 5.8 million barrels -- 2P (Proved + Probable) up 62%: 12.5 million barrels
Net Gas Reserves:
-- Total 1P (Proved) net gas reserves up 89%: 52.5 billion cubic feet -- Total 2P (Proved + Probable) gas reserves up 31%: 76.7 billion cubic feet
The upgrade in oil reserves comes as a result of the successful 2011 Kazakhstan drilling campaign including the Doris appraisal wells AKD05 and AKD06, and the successful AKD03 exploration well, which discovered the Dione field.
The extensive remodeling work subsequently carried out has provided invaluable data that points to a stratigraphic channel model for the Cretaceous sandstone rather than a simple structural model. The validation of this model through further appraisal success would result in a very significant further upgrade in the reserves.
The next appraisal well, AKD07, is expected to spud in Q2 2012 and will be located to the south-east of the original AKD01 discovery well and will target 3P reserves at the Cretaceous Aptian sand level in what is believed to be a channel sand system, whilst simultaneously targeting an exciting exploration prospect (named “Dyna”) that has been identified on the new seismic data from a bright amplitude anomaly at a slightly shallower level and is interpreted to be part of a different, larger sand fan system. The prospective resource for this new target will be disclosed after the completion of a new independent Kazakhstan Resource Report, which is expected to in Q2 2012.
Additional exploration/appraisal prospects have been identified using the newly interpreted 3D and 2D data. This data has led to the identification of a number of other attractive exploration prospects at the Doris reservoir levels and other horizons. All these will be included in the new resource report.
The increase in gas reserves is attributed to good field performance during 2011 and the impact of the detailed spectral analysis of the 3D seismic, which has allowed for better definition of the infill drilling targets and nearby structures. There was also some contribution from the solution gas reserves associated with the Doris and Dione oil discoveries.
Dr David Robson, CEO of Tethys Petroleum, said:
“The 2011 drilling programme was focused on two things, increasing 2P reserves and also ensuring sufficient oil production was available to meet our production targets. This programme has successfully met both objectives. We are still in the early stages of appraising and exploring this attractive oil discovery and we look forward to further success with this year’s programme based on our new seismic analysis and better geological understanding of the area.”