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Tethys Oil Provides Drilling Update on Block 4

Source: www.gulfoilandgas.com 7/15/2010, Location: Middle East

The drilling programme on Block 4 onshore the Sultanate of Oman continues with the drilling of Saiwan East-4 ("SE-4"). The SE-4 well is primarily designed to further evaluate the extension of the oil bearing Khufai reservoir.

SE-4 is being drilled 2.9 kilometers to the southeast of the highly successful Saiwan East-3 well which recently tested at a rate of 10,714 barrels of oil per day from a 467 metres horizontal section in the upper part of the Khufai reservoir. SE-4 is being drilled with the same rig and equipment as was used for SE-3 but SE-4 will be drilled as a vertical well. SE-3 penetrated a 61 metres gross oil column in the Khufai and one of the main objectives of SE-4 is to ascertain whether the Khufai reservoir is oil bearing at the SE-4 location.

The SE-4 well will also penetrate the Buah, Amin and Miqrat formations that have been found to contain thick layers of 'heavy' oil in previous wells, including SE-3. The other main objective of SE-4 is to explore potential formations below the Khufai. The well will be drilled to basement and drilling operations are expected to last slightly more than 30 days.

Tethys has a 30 per cent interest in Blocks 3 and 4. Partners are Mitsui E&P Middle East B.V. with 20 per cent and the operator CC Energy Development S.A.L. (Oman branch) holding the remaining 50 per cent.

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