Tethys Petroleum Announces Corporate Update
Tethys Petroleum (TSXV: TPL) provided updates on regulatory progress and operations at the Kul Bas oil field. The company received ecological and environmental approvals allowing production up to 490 tons/day until July 26, 2026, with domestic-only sales requirement. Tethys submitted an application to transition to Production Period, potentially extending operations until 2048 with export rights.
The company completed two significant operational milestones: the Central Processing Facility (CPF) commissioning on November 19, 2024, and Gas Utilization Facilities (GUF) on January 17, 2025. These facilities help manage associated gas from the first three production wells (KBD-2, KBD-6, KBD-7). Production faces constraints from gas flaring limitations and logistics challenges. Currently selling to mini-refineries, the company's pricing is impacted by Kazakhstan's prohibition on naphtha exports.
Tethys Petroleum (TSXV: TPL) ha fornito aggiornamenti sui progressi normativi e sulle operazioni nel campo petrolifero di Kul Bas. L'azienda ha ricevuto approvazioni ecologiche e ambientali che consentono una produzione fino a 490 tonnellate/giorno fino al 26 luglio 2026, con un requisito di vendita esclusivamente per il mercato interno. Tethys ha presentato un'applicazione per passare al Periodo di Produzione, potenzialmente estendendo le operazioni fino al 2048 con diritti di esportazione.
L'azienda ha completato due traguardi operativi significativi: la messa in servizio del Central Processing Facility (CPF) il 19 novembre 2024, e delle Gas Utilization Facilities (GUF) il 17 gennaio 2025. Queste strutture gestiscono il gas associato dai primi tre pozzi di produzione (KBD-2, KBD-6, KBD-7). La produzione è limitata da vincoli sul gas sventolato e da sfide logistiche. Attualmente vende a mini-raffinerie, e i prezzi sono influenzati dal divieto del Kazakhstan sulle esportazioni di nafta.
Tethys Petroleum (TSXV: TPL) proporcionó actualizaciones sobre el avance regulatorio y las operaciones en el campo petrolero Kul Bas. La compañía recibió aprobaciones ecológicas y ambientales que permiten una producción de hasta 490 toneladas/día hasta el 26 de julio de 2026, con un requisito de venta solo para el mercado interno. Tethys presentó una solicitud para pasar al Período de Producción, lo que podría extender las operaciones hasta 2048 con derechos de exportación.
La empresa completó dos hitos operativos significativos: la puesta en marcha de la Central Processing Facility (CPF) el 19 de noviembre de 2024, y de las Gas Utilization Facilities (GUF) el 17 de enero de 2025. Estas instalaciones gestionan el gas asociado de los tres primeros pozos de producción (KBD-2, KBD-6, KBD-7). La producción enfrenta limitaciones debido a restricciones de quema de gas y desafíos logísticos. Actualmente vende a mini-refinerías, y los precios se ven afectados por la prohibición de Kazajistán sobre las exportaciones de nafta.
Tethys Petroleum (TSXV: TPL)는 Kul Bas 유전의 규제 진행 상황과 운영에 대한 업데이트를 제공했습니다. 회사는 2026년 7월 26일까지 하루 최대 490톤의 생산을 허용하는 생태 및 환경 승인을 받았으며, 국내 판매 의무가 있습니다. Tethys는 생산 기간으로 전환하기 위한 신청서를 제출했으며, 이는 2048년까지 운영을 연장할 수 있는 잠재력을 가지고 있습니다.
회사는 두 가지 주요 운영 이정표를 완료했습니다: Central Processing Facility (CPF)의 사용을 2024년 11월 19일에 시작했으며, Gas Utilization Facilities (GUF)는 2025년 1월 17일에 사용을 시작했습니다. 이러한 시설은 첫 세 개의 생산정(KBD-2, KBD-6, KBD-7)에서 나오는 가스를 관리하는 데 도움을 줍니다. 생산은 가스 플레어링 제한과 물류 문제로 제약을 받고 있습니다. 현재 소형 정유소에 판매하고 있으며, 가격은 카자흐스탄의 나프타 수출 금지로 영향을 받고 있습니다.
Tethys Petroleum (TSXV: TPL) a fourni des mises à jour sur les progrès réglementaires et les opérations dans le champ pétrolier de Kul Bas. La société a obtenu des approbations écologiques et environnementales permettant une production allant jusqu'à 490 tonnes/jour jusqu'au 26 juillet 2026, avec une obligation de vente exclusivement pour le marché domestique. Tethys a soumis une demande pour passer à la Période de Production, prolongeant potentiellement les opérations jusqu'en 2048 avec des droits d'exportation.
La société a atteint deux jalons opérationnels importants : la mise en service de la Central Processing Facility (CPF) le 19 novembre 2024, et des Gas Utilization Facilities (GUF) le 17 janvier 2025. Ces installations aident à gérer le gaz associé des trois premiers puits de production (KBD-2, KBD-6, KBD-7). La production rencontre des contraintes dues aux limitations de torchage de gaz et aux défis logistiques. Actuellement, l'entreprise vend à des mini-raffineries, et les prix sont impactés par l'interdiction pour le Kazakhstan d'exporter du naphta.
Tethys Petroleum (TSXV: TPL) hat Updates zum regulatorischen Fortschritt und zu den Operationen im Ölfeld Kul Bas bereitgestellt. Das Unternehmen erhielt ökologische und umweltrechtliche Genehmigungen, die eine Produktion von bis zu 490 Tonnen/Tag bis zum 26. Juli 2026 ermöglichen, mit einer Verkaufsbeschränkung nur für den Inlandmarkt. Tethys reichte einen Antrag auf Übergang in die Produktionsperiode ein, was möglicherweise zu einer Betriebsverlängerung bis 2048 mit Exportrechten führen könnte.
Das Unternehmen hat zwei bedeutende operationale Meilensteine erreicht: die Inbetriebnahme der Central Processing Facility (CPF) am 19. November 2024 und der Gas Utilization Facilities (GUF) am 17. Januar 2025. Diese Anlagen helfen dabei, das mit den ersten drei Produktionsbohrungen (KBD-2, KBD-6, KBD-7) verbundene Gas zu bewältigen. Die Produktion steht vor Einschränkungen durch Gasfackelbeschränkungen und logistische Herausforderungen. Aktuell verkauft das Unternehmen an Mini-Raffinerien, wobei die Preise durch das Exportverbot von Naphtha in Kasachstan beeinflusst werden.
- Received ecological and environmental approvals for 2024-2025
- Successful commissioning of Central Processing Facility and Gas Utilization Facilities
- Potential production period extension until 2048 with export rights pending approval
- Production to 490 tons/day with domestic-only sales requirement
- Operational constraints due to gas flaring limitations
- Reduced oil prices due to Kazakhstan's naphtha export prohibition
- Logistics challenges affecting production capacity
Grand Cayman, Cayman Islands--(Newsfile Corp. - January 22, 2025) - Tethys Petroleum Limited (TSXV: TPL) ("Tethys" or the "Company") is pleased to provide the following updates regarding its regulatory progress and operational milestones at the Kul Bas oil field.
Regulatory Update
On November 18, 2024, Tethys received all ecological and environmental approvals for 2024, followed by the 2025 ecological permit on December 9, 2024. These approvals allow the Company to produce up to 490 tons/day under the Preparatory Period of Contract No. 1897 for the Kul Bas field, which expires on July 26, 2026. As stipulated under the Subsoil Use Code, all hydrocarbons produced during the Preparatory Period must be sold domestically.
On January 8, 2025, Kul-Bas LLP submitted an application to the Ministry of Energy of the Republic of Kazakhstan to transition Contract No. 1897 for the Kul Bas field to the Production Period. This extension is essential for securing the long-term development of the field, enabling the Company to continue production until July 2048 and granting the right to export hydrocarbons, thereby unlocking the field's full commercial potential. According to the Subsoil Use Code, the Ministry is required to issue a decision within 20 business days (by February 5, 2025). The Company remains hopeful for a timely resolution and continues to actively engage with the Ministry to expedite this critical process.
Operations Update
In addition to the limitations from the regulatory approval, oil production is also constrained by a limitation on the amount of associated gas from the oil production that can be flared. Tethys is working to convert gas to electricity in order to limit gas emissions. As part of this process, the commissioning of the Central Processing Facility (CPF) at Kul Bas was successfully completed on November 19, 2024. Additionally, the Gas Utilization Facilities (GUF) were commissioned on January 17, 2025. These developments help ensure compliance with environmental requirements and support increased levels of oil production at the field. The successful commissioning of the facilities on January 17 brings the end of the planned Phase 1 work to a conclusion. Phase 1 was to primarily handle the associated gas from the first 3 wells in production (KBD-2, KBD-6 and KBD-7). The current plan is to allow these oil handling and gas utilization facilities to operate for a brief period and then for management to prepare a proposal for a Phase 2 program. These new oil handling and gas utilization facilities would allow for increased levels of oil production and for bringing on wells KBD-3, KBD-4 and KBD-8 (if/when the production license allows).
Another limitation on the amount of oil that can be produced can be the logistics. The logistics is handled by the oil buyers as Tethys sells the oil at the field. The buyers ability to handle the logistics can be influenced by the amount of trucking, rail cars, transshipment capacity (moving oil from trucks to rail cars) in the market and by the weather/road conditions. At present, Kulbas is selling oil primarily to mini-refineries given the higher price offered (as compared to the state refineries). The Republic of Kazakhstan has renewed a prohibition that doesn't allow for companies to export naptha (one of the byproducts of the oil refining). The loss of this export market hurts the mini-refineries and ultimately further reduces the price paid for oil as compared to export prices. While the other factors are largely temporary in their impact on the logistics, the elimination of the ability to export naptha appears to be negatively impacting the prices Tethys is offered for oil on a sustained basis.
The Company remains committed to its strategy of responsible growth and is focused on optimizing its operations while meeting all regulatory requirements.
About Tethys
Tethys is focused on oil and gas exploration and production activities in Central Asia and the Caspian Region.
Disclaimer
Some of the statements in this document are forward-looking. No part of this announcement constitutes, or shall be taken to constitute, an invitation or inducement to invest in the Company or any other entity and shareholders of the Company are cautioned not to place undue reliance on the forward-looking statements. Save as required by applicable law, the Company does not undertake to update or change any forward-looking statements to reflect events occurring after the date of this announcement.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact Information:
Tethys Petroleum
Casey McCandless
Chief Financial Officer
901-763-4001
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/238137
FAQ
What is the current production limit for Tethys Petroleum (TETHF) at Kul Bas oil field?
When will Tethys Petroleum (TETHF) receive a decision on their Production Period transition application?
What facilities did Tethys Petroleum (TETHF) commission at Kul Bas in late 2024 and early 2025?
How is Kazakhstan's naphtha export prohibition affecting Tethys Petroleum (TETHF)?
What wells are currently in production at Tethys Petroleum's (TETHF) Kul Bas field?
