Tethys Oil entered in October 2019 into an agreement to acquire a 20 percent interest in the Exploration and Production license covering Block 56 onshore Oman. The transaction is subject to Government approval.

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Block 56 (the “Block”) covers an area of 5,808 km2 in the south-eastern part of Oman some 200 km south of Blocks 3&4. To date 11 wells have been drilled on the Block and all but one have encountered oil or oil shows, although none have been determined to be commercial. The current operator has successfully drilled three of these wells. A work programme to flow test up to three wells is ongoing in the beginning of 2020.

The Block lies at the intersection of different geological provinces including the prolific South Oman Salt Basin. It offers exploration potential in multiple play concepts, both proven and unproven, many of which are familiar to Tethys Oil from its current operations in the country.

The license for Block 56 is governed by an Exploration and Production Sharing Agreement signed in November 2014. Its initial three-year exploration phase has been extended until December 2020 and the partners have the option to enter into a second exploration phase ending in December 2023.

Tethys Oil holds 20 per cent interest in Block 56 with Biyaq holding 5 percent, Intaj LLC will hold 25 percent and the operator Medco Arabia Ltd holding the remaining 50 per cent.