Tethys Petroleum: Tajik Bokhtar PSC Farm-out Deal to Total and CNPC Completed

Tethys Petroleum Limited announces the completion of the farm-out agreement announced in December 2012 with subsidiaries of Total Exploration and Production and China National Petroleum Corporation whereby each acquired a one third interest in its Bokhtar Production Sharing Contract in Tajikistan.

The Bokhtar PSC covers an area of some 35,000 km2 and contains some 27.5 billion barrels oil equivalent of gross unrisked mean recoverable prospective resources (according to independent figures).

As part of the acquisition, the Tajik Government has also now added a further 1186.37 km2 of highly prospective acreage which was not previously included in the Bokhtar PSC, and has also extended the first relinquishment period under the PSC by five years until 2020.

Today’s signing ceremony in Dushanbe, Tajikistan, was attended by Mr. Gul Sherali, the Minister of Energy and Industry of Tajikistan, Mr. Bo Qiliang, President of CNODC, Mr. Michael Borrell, Senior Vice President Continental Europe and Central Asia of Total and Dr. David Robson, Executive Chairman and President of Tethys Petroleum Limited.

Completion of the deal will enable the consortium to progress exploration plans within the Bokhtar PSC with further seismic acquisition and the drilling of deep exploration wells to evaluate the potential super giant deposits which are thought to be present in the area. This area is an extension of the highly prolific Amu Darya Basin, which contains some of the world’s largest gas and condensate fields.

The PSC is now held equally by the three partners who own approximately one third of the project each. An operating company, the Bokhtar Operating Company, has been established and is jointly owned by the three partners.

Tethys’ subsidiary Kulob Petroleum Limited (“KPL”) which holds the Company’s interest in the Bokhtar PSC receives some US$63 million relating to its past costs. It also has a part carry on an US$80 million initial work programme whereby KPL contributes only US$9 million towards this programme. Full details of the 2013 – 2014 work programme will be announced shortly.

Dr David Robson, Executive Chairman and President of Tethys, said:

“We believe the Bokhtar PSC is a world class asset with enormous potential. The strengths brought to this project by our new partners, Total and CNPC, means we are in a position to rapidly explore and develop this potential using all available techniques and technologies and with the financial strength to maximise success.”

Michael Borrell, Senior Vice President, Continental Europe Central Asia, Total Exploration & Production said:

“This acquisition is aligned with our bolder exploration strategy and positions Total in one of the world’s most prolific gas basins. The partnership between Total, CNPC and Tethys is particularly well equipped to conduct successful exploration and potentially develop a value-creating project.”