*Gross Reserves (MMboe) Proved Proved + Probable Proved + Probable + Possible Total (Kazakhstan) 13.18 23.97 40.21
Reserves in accordance with NI 51-101 standards - Gustavson & Associates ("G&A"), December 31, 2015
*Gross meaning before the application of Kazakh Mineral Extraction Tax (MET)
Tethys Petroleum Drilling and Production Equipment - The Benefits of Owning Equipment
Although Tethys Petroleum is not an equipment contractor, it does own oilfield equipment. The decision to purchase equipment was based on the flexibility obtained in remote areas of operation and cost saving as opposed to contracting.
Conventional contractors are reluctant to bring equipment to such remote areas because of cost, time and logistical constraints, especially for single well programs.
The cost of contracting a third party in remote areas for single projects can be prohibitive and render the economics of the project impossible. Owning equipment offers much greater flexibility as to work plans, and the equipment can be leased out to third parties for daily rates if it is not in use. Flexibility allows Tethys petroleum to plan ahead for operations easily and avoid project downtime while waiting for equipment to become available.
Each of the Tethys Petroleum's drilling rigs are named after daughters of the Goddess Tethys:
Rig “Telesto” ZJ70/4500L 2,000 hp (1,470 kW) 450 tonne hookload diesel mechanical drilling rig which was constructed for the Company at the Sichuan Honghua Petroleum Equipment Co., Ltd. factory in Chengdu, China. This has a nominal drilling depth of over 7,000 m (23,000 ft) and is one of the largest rigs in Central Asia and is expected to be further enhanced with the installation of a top drive. Telesto is currently in Kazakhstan.
Rig “Tykhe” ZJ30/1700 CZ 1,080 hp (792 kW) 180 tonne hookload diesel truck mounted mechanical drilling rig, which was constructed for the Company at a factory in Nanyang, China. This rig has a nominal drilling depth of approximately 3,000 m (9,843 ft). Tykhe is currently in Kazakhstan.
Rig “Thoe” UP60/80 400 hp (294 kW) 80 tonne hookload diesel truck mounted mechanical drilling rig with a nominal drilling depth of 2,000 m (6,562 ft) (with 24 kg/m drilling pipes) and workover depth of 4,000 m (13,123 ft) (with 14 kg/m pipes). Thoe is currently in Kazakhstan.
In addition, the Group owns two smaller workover rigs not currently in use, in Tajikistan and Kazakhstan, together with 25 and 50 tonne cranes, GJC40-17 Cementing Unit and miscellaneous vehicles.