Tethys Petroleum Press Release: Corporate Update
Tethys Petroleum has provided a corporate update on its operations in Kazakhstan. As of May 27, test production from the KBD-10 and KBD-11 wells reached 11,000 tons. KBD-11, perforated on May 18, has averaged 275 tons per day, while KBD-10 continues at 24 tons per day. The company faces delays in obtaining a commercial license for oil production, with no clear explanation provided. Negotiations with QazaqGaz about gas payments and prices remain unresolved, and gas fields are currently shut in. The board has approved seeking buyers for the gas fields, starting at $50 million. Due to ongoing delays and uncertainties, Tethys plans significant workforce reductions.
- Test production from KBD-10 and KBD-11 wells reached 11,000 tons.
- KBD-11 averaging 275 tons per day post-perforation.
- KBD-10 maintains steady production at 24 tons per day.
- Board approved seeking buyers for gas fields starting at $50 million.
- Delays in obtaining commercial licenses for oil production.
- No resolution on gas payment or price negotiations with QazaqGaz.
- Gas fields remain shut in.
- Planned significant workforce reductions due to delays and uncertainties.
Grand Cayman, Cayman Islands--(Newsfile Corp. - May 31, 2024) - Tethys Petroleum Limited (TSXV: TPL) ("Tethys" or the "Company") is pleased to provide an update on the Company's operations in the Republic of Kazakhstan.
Operations update
Test production from the KBD-10 and KBD-11 wells has totaled about 11,000 tons through May 27. KBD-11 perforated a new Upper Barremian zone on May 18th and has averaged about 275 tons per day over the last ten days. KBD-10 continues to produce about 24 tons per day.
Regulatory update
The Company is continuing to push for an explanation on the delays for obtaining the commercial license for the production and sale of oil. No satisfactory explanation has been provided.
Gas Contract Negotiations
The Company has not yet reached a resolution with QazaqGaz in regards to payment and price for gas production. The Company is trying to receive an appropriate payment or have the gas that has been delivered returned. The gas fields remain shut in.
The Board of Directors has approved an effort for Management to solicit offers to sell the gas fields using a starting price of
Planned Reductions
The Company is in the process of preparing significant head count reductions given the continued delays and uncertainty created from the commercial license approval and the non-payment from QazaqGaz.
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
info@tethys-group.com
www.tethys-group.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/211320
FAQ
What is the recent production update for Tethys Petroleum in Kazakhstan?
How much is KBD-11 well producing daily?
What issues is Tethys Petroleum facing with commercial licensing?
What are the current negotiations with QazaqGaz about?
What steps is Tethys taking in response to the unresolved gas negotiations?
What workforce changes are planned by Tethys Petroleum?
