Georgia is an independent republic with a population of approximately 4.5 million in the Caucasus region of Eurasia. It is located at the strategically important crossroads of Western Asia and Eastern Europe, bounded to the west by the Black Sea, Russia to the north, Turkey and Armenia to the south and Azerbaijan to the south-east.
In 2013 Tethys farmed in to three licence blocks in Georgia near the capital city Tbilisi. The licence blocks (XIA, XIM and XIN) are operated as part of a production sharing contract (PSC) by Georgian Oil and Gas Limited ("GOG") which owns 51% and has extensive experience in operating in this part of Georgia whilst Tethys owns 49%. The three licence blocks sit within the prolific Kura Basin stretching from Azerbaijan and the Caspian Sea. Existing oil and gas pipelines pass through the licence blocks and the proximity and to Tbilisi offers easy access and good local infrastructure. Tethys can secure near world oil prices exporting into these pipelines.
The PSC’s cover high potential acreage with both conventional and unconventional plays.
The partners are engaged in an exploration programme including gravity and seismic surveys as well as geochemical and fracture studies of the Maikop source rock.
GOG and Tethys are currently renegotiating the minimum work programmes and funding obligations with the Georgian State Agency for Block XIM and XIN and intend to relinquish Block XIA.