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Tethys Petroleum Limited, trading under the symbols TSXV: TPL and OTC:TETHF, has made notable announcements regarding its operational status in Kazakhstan. This update marks a pivotal moment for the company as it outlines its transition into a new production phase at the Kul-Bas oil field, alongside strategic decisions impacting its stock listings.
With the approval from the Ministry of Energy of Kazakhstan, Tethys is set to begin the Production Period for the Kul-Bas oil field, which is slated to last until July 27, 2048. This crucial endorsement not only extends production timelines but also assures the company that operations can continue beyond the current preparatory phase, which is set to expire in July.
Transitioning to commercial production
As Tethys Petroleum embarks on this new journey, the next step involves signing an addendum to the Kul-Bas subsoil use contract that will reflect the approved terms of this transition. The company is optimistic that this document will be finalized soon, pending the completion of all necessary formalities.
Current production levels and operational enhancements
Currently, oil production from the wells KBD-02, KBD-06, and KBD-07 has averaged around 425 tons per day. Fluctuations in these figures have been attributed to ongoing improvements in surface facilities, which are crucial for enhancing efficiency. Additionally, maintenance work on one of the gas turbines is underway, with expectations that its return to service will bolster production rates significantly.
Simultaneously, commissioning efforts for a new gas compressor are in progress. Successful implementation of this compressor will further enhance production capabilities. The company is also focused on expanding the oil processing and storage facilities at the central processing hub within the Kul-Bas oil field, alongside advancing designs for a new gas processing facility and an 18-kilometer gas pipeline.
Natural gas production from the Kyzyloi and Akkulka gas fields is currently yielding approximately 230,000 m³ per day from a total of 21 gas wells, showcasing the company’s robust operational capacity.
Strategic extensions and market adjustments
In another key move, Tethys Petroleum has filed an application with the Ministry of Energy to extend the subsoil use contract for the Akkulka gas field, aiming for an extension beyond its current expiration. The company anticipates that approval will be granted soon, followed by the signing of the necessary addendum shortly thereafter.
Voluntary delisting from the Kazakhstan Stock Exchange
Amid these operational advancements, the Board of Directors at Tethys has resolved to proceed with a voluntary delisting of the company’s shares from the Kazakhstan Stock Exchange (KASE). This decision arises from a prolonged period of minimal trading activity on KASE, leading the board to conclude that maintaining a secondary listing does not yield tangible benefits for shareholders. The company’s primary trading platform will continue to be the TSX Venture Exchange (TSXV).
In summary, Tethys Petroleum is poised for a transformative phase with its ongoing operations in Kazakhstan. The company is actively working to ensure its production capabilities are optimized while strategically repositioning itself in the market. These bold steps are aimed at enhancing shareholder value and sustaining long-term growth in the region.
As Tethys navigates these changes, stakeholders are encouraged to remain informed about future developments as the company works diligently to fulfill its operational potential.
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