Tethys Petroleum boosts reserves and targets new prospect in Kazakhstan

Tethys Petroleum (LON:TPL,TSE:TPL) has almost doubled proved oil and gas and seen a 45 per cent increase in probable reserves at its acreage in Kazakhstan.

The group added it is also targeting a new exploration prospect named "Dyna" that may be part of a different, larger sand fan system.

The prospective resource for this new target will be disclosed after the completion of a new independent Kazakhstan Resource Report, which is expected in the second quarter of 2012, Tethys added.

The new resources estimate consists of 14.5 million barrels of oil equivalent of 1P (proved) reserves, a 96 per cent increase, and 25.3 million barrels of 2P (proved and probable) reserves, a 45 per cent improvement.

Out of that, proved oil reserves rose by 108 per cent to 5.8 million barrels and probables by 62 per cent to 12.5 million barrels, while 1P gas reserves rose by 89 per cent to 52.5 billion cubic feet and 2P gas reserves by 31 per cent to 76.7 billion cubic feet.

Tethys said the upgrade stemmed from the successful 2011 Kazakhstan drilling campaign including the Doris appraisal wells AKD05 and AKD06 and the successful AKD03 exploration well, which discovered the Dione field.

It added that the next appraisal well, AKD07, is expected to spud in and will be located to the south-east of the original AKD01 discovery well and will target 3P reserves at the Cretaceous Aptian sand level in what is believed to be a channel sand system.

Dr David Robson, Tethys’ chief executive, said: "The 2011 drilling programme was focused on two things, increasing 2P reserves and also ensuring sufficient oil production was available to meet our production targets. This programme has successfully met both objectives.

“We are still in the early stages of appraising and exploring this attractive oil discovery and we look forward to further success with this year's programme based on our new seismic analysis and better geological understanding of the area."