Tethys closes Tajikstan acquisition

Tethys Petroleum (TSE:TPL)(LSE:TPL) said Tuesday it has completed the purchase of a 34 percent stake in Seven Stars Energy Corp from its Tajik joint venture partner, Sangam Limited, increasing its shareholdering to 85 percent.

Seven Stars is the owner of the rights to the Bokhtar production sharing contract (PSC) in Tajikistan. Tethys now owns an 85 percent controlling interest in the contract, where unrisked propsective resources are estimated at 1.14 billion barrels of oil equivalent.

Tethys said it enjoys "excellent commercial terms" fixed under the 25-year production sharing contract.

The area covered under the PSC includes 35,000 square kilometres of the underexplored Afghan-Tajik Basin, with prolific discovered fields nearby.

The company said ongoing data acquisition is in the final stages, with the aim to drill the first deep pre-salt exploration well in the near future.

"This is a great step forward that will allow Tethys a greater share in a very prospective, yet underexplored, area," said Tethys CEO, Dr. David Robson.

"I consider the Afghan-Tajik Basin and its extension the Amu-Darya Basin to be one of the most prolific in the world with giant and supergiant gas and condensate fields such as those in neighbouring Uzbekistan and in Turkmenistan.

"We are very pleased to have the continued support of our partners Sangam and will continue in ongoing discussions with potential farm-in partners with this acquisition providing a more efficient corporate structure for potential investors."

"This is a unique opportunity to now move forward and leverage a majority ownership in what Tethys regards as the jewel in the crown of the company."

In October, the oil and gas explorer said that a sucessful workover of well BST20 in the Beshtentak oilfield in Tajikstan tested at a rate of 533 barrels of oil per day (bopd).

The 533 barrels of oil per day tested was accompanied by 12,500 cubic metres or 441 thousand cubic feet of gas per day on a restricted choke, with a flowing tubing head pressure of 26 atmospheres.

The well is being placed on oil production, and the gas tied into the nearby local gas grid, the company said.

Tethys is focused on oil and gas exploration and production activities in Central Asia, specifically in the Republics of Kazakhstan, Tajikistan and Uzbekistan.