RE: RE: 2012 year end on Sedar Short term production increases are not expected to come from oil. The new phase 2 oil facilities are completed (6,300 bod capacity), but the only way TPL increases production in Kazakhstan is from a new oil field. Either from a successful Kalypso flow test or from one of the 3 new Kazakhstan oil wells to be drilled. Once the Chegara Field finally gets the approval of the Uzbekistan government, TPL can drill at will on a know oil accumulation that looks to be much larger than Doris, with better netbacks per bod.
But short term there could be increases from gas production. The wells are tied in, they don't have to be drilled or tested. Just brought on. And new wells only cost $0.5 mil (2 weeks to drill) to drill and test. Each of TPL's past AKK gas wells have flowed between 433 - 2,200 boe with the average around 1,150 boe/well.
With $60 mil coming from the farmout to Total and the Chinese there will be plenty of $ to drill and test whatever they want to. Average cost of drilling to 2,500 m in Kazakhstan is about $3 mil/well. So in theory they could drill 20 oil wells or 120 gas wells with $60 mil.
Phase 2 oil facilities at the ATO terminal are done and the gas facilities where completed years ago at 12,800 boed capacity so no more $ has to be burned on building out their infrastructure, unless they want to start phase 3 at the ATO hub.
If TPL finds more hydrocarbons they can increase oil production by 40% and they can increase gas production 512% from stand alone facilities at this time.