• Tethys Oil's share of Lithuania interest production during first quarter
2012 amounted to 14,508 barrels of oil corresponding to 159 BOPD
• Tethys Oil's share of Lithuanian 2P reserves as at year end 2011 were 1.7
• 2012 work programme – 1 exploration well, 2 sidetracks and 3D seismic
• Tethys entitled to dividend of MUSD 2.4 payable in June
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
For further information, please contact
Magnus Nordin, Managing Director, phone +46 70 576 6555; magnus@tethysoil.com
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.
Website: www.tethysoil.com