Grand Cayman, Cayman Islands--(Newsfile Corp. - March 20, 2024) - Tethys Petroleum Limited (TSXV: TPL) ("Tethys" or the "Company") is pleased to provide an update on the Company's operations in the Republic of Kazakhstan.
Regulatory update
On March 12, Tethys received gas flaring permits for exploratory wells from the Ministry of Energy. Subsequently, Tethys completed an application for an ecology permit, which is essential for oil production from the KBD-10 and KBD-11 wells scheduled for April. The Company hopes to receive the approval by April 5.
Regarding the commercial license, while the Working Group for the Gas Processing Program of the Ministry of Energy provided a positive review on March 1, the Ministry has not yet issued the official minutes of the Working Group, causing a delay beyond the March 15 deadline. Consequently, Tethys has initiated the process of reapplying for the ecology permit necessary for commercial production. The Company is hoping to receive the commercial license by the end of May. The oil handling and gas utilization facilities are not yet complete, but the Company expects to have them in place and operational when the commercial license is received.
Reserve report
Tethys engaged McDaniel and Associates Consultants to provide a reserve report as of December 31, 2023. This report has now been completed and was prepared in compliance with NI51-101, Standards of Disclosure for Oil and Gas Activities and the COGE Handbook. Overall, the total proved and total proved + probable reserves are up about 3.7 Mboe (8%) and 3.5 Mboe (4%) respectively. The following is a summary from the report:
| | 2023 | | 2022 | |
| Reserve Category | Barrel of Oil | | | | | Barrel of Oil | | | | | | |
| | Equivalent (net Mboe) | | Equivalent (net Mboe) | |
| Total Proved Reserves | 49,493 | | | | | 45,814 | | | | | | |
| Total Proved and Probable | 85,676 | | | | | 82,193 | | | | | | |
| Total Proved, Probable, and Possible | 126,454 | | | | | 124,534 | | | | | | |
| | | 2023 | | | 2022 | |
| | | | | | | | | | | | | |
| | Total of NPV after | | Total of NPV after | |
| | taxes ($M US Dollars) | | taxes ($M US Dollars) | |
| | | | | | | | | | | | | |
| Reserve Category | 0.00% | | 10.0% | | 0.00% | | 10.0% | |
| Total Proved Reserves | $ | 640,549 | | $ | 383,223 | | $ | 603,795 | | $ | 361,274 | |
| Total Proved and Probable | $ | 1,190,616 | | $ | 628,707 | | $ | 1,174,301 | | $ | 610,474 | |
| Total Proved, Probable, and Possible | $ | 1,876,916 | | $ | 883,849 | | $ | 1,888,997 | | $ | 891,946 | |
| | Crude Oil NPV | | | | Crude Oil NPV | | | |
| | | | | | | | | | | | | |
| Reserve Category | 0.00% | | 10.0% | | 0.00% | | 10.0% | |
| Total Proved Reserves | $ | 628,240 | | $ | 373,235 | | $ | 576,885 | | $ | 340,032 | |
| Total Proved and Probable | $ | 1,166,837 | | $ | 612,370 | | $ | 1,130,528 | | $ | 580,471 | |
| Total Proved, Probable, and Possible | $ | 1,845,856 | | $ | 863,768 | | $ | 1,836,017 | | $ | 857,825 | |
| | Natural Gas NPV | | | | | Natural Gas NPV | | | | |
| Reserve Category | 0.00% | | 10.0% | | 0.00% | | 10.0% | |
| Total Proved Reserves | $ | 12,309 | | $ | 9,988 | | $ | 26,910 | | $ | 21,242 | |
| Total Proved and Probable | $ | 23,779 | | $ | 16,337 | | $ | 43,773 | | $ | 30,003 | |
| Total Proved, Probable, and Possible | $ | 31,060 | | $ | 20,081 | | $ | 52,980 | | $ | 34,121 | |
The difference in the estimated reserve value on the gas fields is due to a reduction in the expected prices.
About Tethys
Tethys is focused on oil and gas exploration and production activities in Central Asia and the Caspian Region.