Tethys Petroleum Provides Corporate Update

Rhea-AI Summary

Tethys Petroleum (TSXV: TETHF) has received formal approval of the protocol necessary to advance its oil production activities in Kazakhstan, marking a significant regulatory milestone. The company will now file for a gas flaring permit and pursue an ecological permit, with production expected to commence from wells KBD #2, KBD #6, and KBD #7 by mid-November 2024. Initial production during the preparatory period is anticipated to reach 400-500 tons daily.

Tethys is actively working to expedite the signing of the Production Contract, which would extend the Kul Bas oil field's production period until July 2048 and allow oil exports. Test production from exploratory wells KBD-10 and KBD-11 resumed on April 8, 2024, totaling approximately 33,050 tons to date. Currently, only KBD-11 is producing from the Upper Barremian. The company's oil handling and gas utilization facilities are nearly complete and expected to be operational when the ecological permit is received.

Positive

• Received formal approval of protocol for advancing oil production activities in Kazakhstan
• Expected to commence production from three wells by mid-November 2024
• Anticipated daily production rate of 400-500 tons during preparatory period
• Test production from exploratory wells totaled approximately 33,050 tons since April 8, 2024
• Oil handling and gas utilization facilities nearly complete

Negative

• Acid job in KBD-10 targeting Lower Jurassic zone was unsuccessful
• Uncertainty regarding timing of Production Contract approval
• production levels during preparatory period

Grand Cayman, Cayman Islands--(Newsfile Corp. - October 18, 2024) - Tethys Petroleum Limited (TSXV: TPL) ("Tethys" or the "Company") is pleased to announce that it has today received formal approval of the protocol necessary to advance its oil production activities in Kazakhstan. This represents a significant regulatory milestone for the Company.

Regulatory update

With the protocol approval received today, the Company will file for a gas flaring permit early next week, which is expected to be approved within two working days. Following this, Tethys will pursue the required ecological permit, the final regulatory step before starting the main oil production. The Company anticipates receiving the ecological permit by mid-November 2024, allowing production to commence from wells KBD #2, KBD #6, and KBD #7. Initial production will likely take place within the preparatory period, during which production levels cannot exceed those established during the prior pilot oil production phase. During the preparatory period, production from these three wells is expected to reach a daily rate of approximately 400-500 tons. The Company will continue to actively engage with the Ministry of Energy to expedite the signing of the Production Contract, which will extend the Kul Bas oil field's production period until July 2048 and allow the Company to export oil. This application has been made but the timing in its approval is uncertain.

Operations update

Test production from the exploratory wells KBD-10 and KBD-11 resumed on April 8, 2024, following the expiration of the exploratory period on October 16, 2023. It has totaled approximately 33,050 tons to date. Currently, only KBD-11 is producing from the Upper Barremian, as the acid job in KBD-10 targeting the Lower Jurassic zone was unsuccessful. Management isn't certain whether the lack of production from the Jurassic zone on KBD-10 was due to geology or mechanical issues from the well.

The oil handling and gas utilization facilities are almost complete and the Company expects to have them in place and operational when the ecological permit is received.

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/227160

FAQ

When does Tethys Petroleum (TSXV: TETHF) expect to start oil production in Kazakhstan?

Tethys Petroleum expects to commence oil production from wells KBD #2, KBD #6, and KBD #7 by mid-November 2024, following the receipt of the ecological permit.

What is the expected daily production rate for Tethys Petroleum (TSXV: TETHF) during the preparatory period?

During the preparatory period, Tethys Petroleum anticipates a daily production rate of approximately 400-500 tons from the three wells.

How much test production has Tethys Petroleum (TSXV: TETHF) achieved from exploratory wells KBD-10 and KBD-11?

Test production from exploratory wells KBD-10 and KBD-11 has totaled approximately 33,050 tons since resuming on April 8, 2024.

What is the status of Tethys Petroleum's (TSXV: TETHF) Production Contract for the Kul Bas oil field?

Tethys Petroleum is actively working to expedite the signing of the Production Contract, which would extend the Kul Bas oil field's production period until July 2048 and allow oil exports. However, the timing of its approval is uncertain.