- Om Tethys Oil
The production on the Gargzdai license in western Lithuania during the first quarter 2012 amounted to 58,033 barrels of oil, corresponding to 638 barrels of oil per day (bopd). The production share attributable to Tethys Oil amounts to 25 per cent of the total, or 14,508 barrels corresponding to 159 bopd. The average oil price achieved during the quarter was 113.40 USD per barrel.
Tethys Oil's share of reserves in the Gargzdai license, according to the agreement with Odin Energi A/S ("Odin"), amounts as per December 31, 2011 to 0.7 million barrels of oil ("mmbo") of 1P reserves, 1,7 mmbo of 2P and 3.0 mmbo of 3P. The reserves are calculated on the basis of the reserves from the Miller Lents review as per January 1, 2011, reduced with the operator's numbers of aggregated production for 2011.
2012 work programme
An exploration well is planned to be spudded in mid May. The mobilization of the rig is ongoing. The well is designed to evaluate multiple objectives and will target a previously undrilled Cambrian sandstone prospect. The well will also explore the potential of the Silurian/Ordovician shale sections, located above the Cambrian sandstone. Extensive logging and coring will be carried out in the shale sections.
Two appraisal/development sidetracks in existing wells are planned to be drilled later this year on the Gargzdai license. The work programme also includes acquisition of 50 kilometres of 3D seismic over the north eastern part of the Gargzdai license to firm up potential exploration targets.
The work programmes for the Rietavas and Raiseiniai licenses have not been finalized, but reprocessing of existing seismic data on both licenses is ongoing. In addition the Silale-1 well on the Rietvas license, which flowed 150 bopd from the Cambrian layer when it was discovered in the eighties, will be worked over.
Acquisition details update
According to the agreement, announced in January 2012, Tethys interests in Lithuania shall be held together with Odin through Odin group companies giving Tethys a net indirect interest of 25% in UAB Minijos Nafta ("MN") and 20% in UAB LL Investicos ("LLI"). MN holds the Gargzdai license and LLI holds the Rietavas and Raiseiniai licenses. Tethys has received newly issued shares in Odin group companies for the holding of LLI. In order to enable the transfer of shares in Odin group companies for Tethys holding in MN, a reconstruction of the Odin group is ongoing. The reconstruction is in line with the agreement, and is progressing according to plan. According to the agreement, Tethys are entitled to dividend from MN for last year amounting to MUSD 2.4 payable in June.
For further information, please contact
Magnus Nordin, Managing Director, phone +46 70 576 6555; firstname.lastname@example.org
Tethys Oil AB (publ)
Tethys Oil is a Swedish energy company focused on identification and development for production of oil and natural gas assets. Tethys' core area is the Sultanate of Oman, where the company is the second largest onshore oil and gas concession-holder with licence interests in three onshore blocks. Tethys also has licences onshore France, Lithuania and Sweden. Tethys' strategy is to invest in projects in areas with known oil and natural gas discoveries that have not been properly appraised using modern technology. In this way, high returns can be achieved with limited risk.
The shares are listed on First North (TETY) in Stockholm. Remium AB is Certified Adviser.