Tethys Petroleum begins drilling Kalypso well in Kazakhstan

Dec 06. Proactive Investors

Tethys Petroleum begins drilling Kalypso well in KazakhstanCentral Asia-focused Tethys Petroleum said Monday it has begun drilling the KBD01 exploration well, also known as Kalypso, in Kazakhstan, located 50 km northwest of the Doris oil discovery.

Tethys, which has properties in Tajikstan, Kazakhstan and Uzbekistan, has mobilised a ZJ30 rig to the site to drill to a depth of 300 metres, after which the well will be completed using the company’s larger ZJ70 rig.

Kalaypso has a planned total depth of 4,000 metres and is targeting potential reservoirs at several stratigraphic levels from the Cretaceous to the Permo-Carboniferous, the company said.

The KBD01 well is the first deep exploration well to be drilled by the company on the Kul-Bas block, which covers an area of 7,632 sq km. The block’s original exploration and production contract has a six year exploration period with relinquishments, and a 19-year production period, which can be extended.

The company recently said it had reached an agreement with the Kazakh Ministry of Oil and gas to extend the exploration term by a further two years, until December 2013, without further relinquishments.

Kul-Bas surrounds the Akkulka contract area, where the company recently made the AKD01 Doris oil discovery.

Tethys Petroleum Limited’s strategy is to create shareholder value by building an oil and gas exploration and production company focused on Central Asia in areas with substantial oil and gas potential, building on the strengths of its management team and with a mix of short-term cash flow and upside potential. Currently Tethys has projects in Kazakhstan, Tajikistan and most recently Uzbekistan. Tethys is listed on the Toronto Stock Exchange in Canada and on the Kazakhstan Stock Exchange (KASE: GG_TPL_).