East Komsomolsk Well Commences Drilling

Source: www.gulfoilandgas.com 8/5/2009, Location: Asia

Tethys Petroleum Limited announced that drilling operations had commenced on the East Komsomolsk KOM200 appraisal well with the well being officially opened by the Prime Minister of the Republic of Tajikistan, His Excellency Oqil Oqilov, and Dr David Robson, Chairman, President and Chief Executive Officer of Tethys. The Prime Minister also toured Tethys' new operations base nearby the rigsite. It is believed that this is the first new non-State well drilled in Tajikistan in living memory.

The KOM200 well is designed to appraise the eastern portion of the Komsomolsk gas field, which lies beneath the northern part of Dushanbe, the capital city of Tajikistan. It is being drilled by Tethys' ZJ30 rig Tykhe, and is a directional inclined well intended to intersect three potential reservoir zones. The planned total depth of the well is 2,610 meters (8,563 feet) and it is expected that drilling operations will be completed within approximately 65 days. Total vertical depth of the well will be 2,175 meters (7,136 feet) with an approximate 1.3 kilometres horizontal displacement to the east. Given success with this well a further well (KOM201) is planned from the same surface location later this year.

In an independent reserve and resource report commissioned earlier in 2009 on the Komsomolsk Field, located near and under the city of Dushanbe, Prospective and Contingent Resources were assessed at a gross unrisked summed mid-case of some 74.95 billion cubic feet (Bcf) (2.12 billion cubic metres (Bcm)) of natural gas. Any success on these wells would most likely move the Contingent Resources into the Reserves category. This field lies next to the capital city Dushanbe and has existing pipeline infrastructure in place.

Currently Tajikistan imports almost all its gas at a price, which Tethys believes to be US$240 per thousand cubic metres (US$6.80 per thousand cubic feet). Initial negotiations have already commenced with local gas buyers including TajikGas with the intention that, given success, gas deliveries could commence before the end of this year. The area around the well has several large industrial gas consumers including a large cement plant, aluminium plant and thermal power plant.

Dr David Robson, speaking at the ceremony commented, "This well marks an important step for the development of the oil and gas industry in Tajikistan and for Tethys in Tajikistan. We hope to be supplying gas to the Dushanbe area this coming winter and hopefully be able to supply a significant portion of this gas demand from the East Komsomolsk Field. We would like to thank the Prime Minister for opening the well here today. In addition our seismic programme in the Dushanbe area has also shown some other interesting prospective structures, which give the potential for further gas in the future. Tethys is also active in other parts of our large Bokhtar Production Sharing Contract Area and we are committed to the exploration and development of what we see as an extremely attractive and high potential extension of the prolific Amu Darya basin."


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