TASHKENT, UZBEKISTAN--(Marketwire - Jan. 11, 2010) - Tethys Petroleum Limited ("Tethys" or the "Company" (TSX:TPL)) today gave an update on activities in Uzbekistan.
Tethys is honoured to announce that the President of Uzbekistan, his Excellency President Karimov, has issued an Order that includes instructions to provide support to the oil and gas activities of Tethys in Uzbekistan. The Order instructs NHC Uzbekneftegaz, the Uzbek state oil and gas company, to evaluate further expansion of cooperation with Tethys in carrying out exploration works on perspective areas and increasing oil production on existing fields.
Julian Hammond, Chief Commercial Officer of Tethys, commented, " We are very pleased to receive this support from his Excellency President Karimov in furthering our activities in Uzbekistan. The fact this Order has been issued after a relative short period of activity by the company in Uzbekistan reflects the commitment we have shown on our existing project and also the commitment to expand our activities in the oil and gas industry in Uzbekistan."
The first focus area is to support Tethys in increasing production at the North Urtabulak Oil Field in south western Uzbekistan where Tethys currently operates and produces oil under a Production Enhancement Contract ("PEC") and possibly in other fields.
Tethys' new field development well, NUR116, at the North Urtabulak oilfield, is drilling on schedule and has reached the next casing point at a depth of 2,007m (6,582 ft) with the 9 5/8 " casing about to be run and cemented. The planned TD for the well is 2,475m (8,117 ft). The NUR116 well is located in the relatively undrilled "NW Salt Zone" of the field and is being drilled for the Company by Xibu Drilling Engineering Company Limited (part of Great Wall Drilling Company) on a turnkey basis. Tethys is currently completing a dynamic reservoir model for the field, to assist in field development planning, and is in the process of introducing several new techniques to increase production including radial drilling and organic acid stimulation. Tethys believes there is substantially more recoverable oil remaining in the North Urtabulak oilfield, reported as the second largest oilfield in Uzbekistan when discovered. It is expected that the new well will be put on production immediately it is completed.
The second focus area is assisting Tethys in the area of new exploration. Tethys believes there is substantial exploration potential in Uzbekistan, including in the Ustyurt basin in Northern Uzbekistan. Tethys has recently announced a new exploration oil discovery in the Ustyurt basin in Kazakhstan which has already flowed oil from the first zone to be tested and with the results from the second zone expected some time in the next month. Tethys believes that its unique technical knowledge gained in Kazakhstan could be invaluable in any potential joint exploration work with Uzbekneftegaz in similar geology in Uzbekistan. Tethys believes the issue of this Order will facilitate discussions with the State oil and gas company and help progress toward obtaining some exploration acreage in this attractive area.
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, including the risks relating to the sufficiency of the cash flow from SSEC to repay funds advanced by TTL. See the description of risks and uncertainties and underlying factors and assumptions relevant to the Company's business, including its exploration and development activities, contained in the Annual Information Form dated March 31, 2009 (which are incorporated herein by reference). The "forward looking statements" contained herein speak only as of the date of this press release and, unless required by applicable law, the Company undertakes no obligation to publicly update or revise such information, whether as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
Tethys Petroleum Limited Sabin Rossi Vice President Investor Relations +1 416 572 2065 +1 416 572 2201 (FAX) info@tethyspetroleum.com www.tethyspetroleum.comor
In Kazakhstan PG Communications Ardak Akanov, Managing Director +7 (727) 272 8867, +7 (727) 272 8237 +7 (727) 272 7745 development@pressclub.kzor
In Asia-Pacific Quam IR Anita Wan Associate Director + (852) 2217-2999 anita.wan@quamgroup.com
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