Kyzloi Gas Production Contract 15-Year Extension
GRAND CAYMAN, CAYMAN ISLANDS--(Marketwired - Jan. 23, 2015) - Tethys Petroleum Limited (TSX:TPL)(LSE:TPL) today announced that its wholly-owned Kazakh subsidiary, TethysAralGaz LLP ("TAG"), has received permission from the Ministry of Energy of the Republic of Kazakhstan to extend the Kyzyloi Gas Production Contract (the "Contract") for another 15 years, from June 14, 2014 to December 31, 2029.
The Ministry of Energy has granted this contract extension following the Kazakh State Reserves Committee's (GKZ) approval of the new State Reserves for Kyzyloi previously announced in May 2014. The Kyzyloi contract area has been increased by 56 percent to 449 km2 (110, 950 acres) and now encompasses a larger gas bearing area including the AKK05 well (to be worked over later in Q1 2015) and also the AKK08 & AKK10 successful gas wells.
John Bell, Executive Chairman, commented, "This very important gas production contract extension follows on from the Akkulka Exploration Contract Extension earlier this month, and is another manifestation of the good working relationship that the Company has worked hard to build up with the Kazakh authorities. We see very good growth potential in the gas business over next few years both in terms of pricing and volume and this approval of Kyzyloi for an additional 15 years provides a solid production base from which to achieve this growth."
Tethys is focused on oil and gas exploration and production activities in Central Asia and the Caspian Region. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.
This press release contains "forward-looking information". Such forward-looking statements reflect our current views with respect to future events, including the execution of routine amendments to the Contract, growth potential for gas volumes produced and prices realised and the significant potential of exploration and discovered deposits. The forward-looking statements are based on the assumption that routine amendments to the Contract will be executed and that gas volumes produced by the Company and prices realised will continue to grow. These forward-looking statements are subject to a number of risks and uncertainties, including the risk that routine amendments to the Contract will not be executed and that gas production and realised prices will not increase as anticipated. See our Annual Information Form for the year ended December 31, 2013 for a description of risks and uncertainties relevant to our business, including our exploration activities. The "forward looking statements" contained herein speak only as of the date of this press release and, unless required by applicable law, the Company undertakes no obligation to publicly update or revise such information, whether as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
Tethys Investor Relations
Vice President Investor Relations
Tethys Petroleum Limited
Source: Tethys Petroleum Limited