Great Wall Wins Tethys Drilling Work
Contractor awaits signing of firm deal for 10-well campaign in Kazakhstan
Great Wall Drilling has a deal worth around $6 million lined up with Tethys Petroleum to drill 10 shallow gas wells in Kazakhstan – but will have to wait for payment from the cash-strapped operator.
The wells are set to be drilled on Tethys’ Kyzyloi and Akkulka gas development in the Central Asian country, with the work set to start on 1 May 2017, contingent on signing of a firm drilling contract.
Tethys said in a statement it now has 10 days within which to sign the deal with Great Wall but will have until the end of the 2018 fiscal year to meet the drilling costs, which it intends to finance from production revenue.
The Toronto-listed company also intends to work over three existing wells and tie in two wells that have been drilled but not tied in for production under the drilling campaign, which will add 12 production wells at the project.
A mini-compressor will also be installed this summer to enhance gas production from new wells that will be tied in.
Tethys admitted it has a continued cash flow problem and a need for funding, having gained an 18-month extension on a $3.5 million loan secured against its rigs.
It is also in talks with other lenders for extensions on loans due to mature in March and June this year.
by Steve Marshall