Tethys Petroleum (TSE:TPL)(LSE:TPL) says that it is now ready to test its AKD07 exploration/appraisal well in Kazakhstan after it reached a total depth of 2,750 metres, potentially adding reserves to its operations in the area.
The company has now run the production liner in order to test the Jurassic carbonate zone, it said Thursday, "which appears to be oil-bearing from the drilling and wireline log results".
The oil and gas explorer further said the results of the total depth logging confirm those of the previous wireline logging, indicating potential oil in the Jurassic zone some 30 metres deeper than previous lowest known oil found in the area.
The interval is to be production tested using a "staged approach", the company said, with a positive test to potentially result in a significant upgrade in the reserves in the Doris oil field area, and also providing further appraisal targets at this level.
In April of this year, the company released the updated prospective resource report for Tethys’ Kazakhstan assets, prepared by Gustavson Associates, which estimated gross unrisked recoverable mean prospective oil resources of 1.23 billion barrels of oil and 634.4 bcf of gas, which is 1,336 billion barrels of oil equivalent (BOE).
The AKD07 is the first appraisal/exploration well since that report to target the exploration upside and is located to the south-east of the company's producing Doris field.
The company also said today that in the remainder of the well down to total depth, there were a number of sands found with limited hydrocarbon indications that are likely too thin to contribute to commercial production.
As such, Tethys will not be testing these sands in the AKD07 well, with the initial test results for the Jurassic carbonate zone expected within the next month.
The company added that the well was drilled and completed "significantly quicker" than originally projected.
Tethys is focused on oil and gas exploration and production activities in Central Asia, with assets in the Republics of Kazakhstan, Tajikistan and Uzbekistan.
By. Deborah Bacal for Proactive Investors