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Tethys doubles gas price in Kazakhstan

31st January 2013

Exploration company Tethys Petroleum Ltd raises its gas price in Kazakhstan to USD 65 per 1,000 cubic meters

Tethys doubles gas price in Kazakhstan
Two gas supply contracts have been signed by Tethys with Intergas Central Asia JSC for the Kyzyloi and Akkulka natural gas fields

Tethys Petroleum Limited, the oil and gas exploration and production company focused on Central Asia on Thursday announced that it has effectively doubled the net price of the gas which it is selling in Kazakhstan.

The new gas price, after marketing and distribution costs stands at USD 65 per 1,000 cubic metres. The company’s current total production is fixed at 2,530 barrels of oil equivalent per day. Further production increases are achievable through the tie-in of other already drilled wells, and targeting shallow gas prospective resources, Tethys has said.

Two gas supply contracts have been signed by Tethys' wholly owned Kazakh subsidiary, TethysAralGas LLP, with Intergas Central Asia JSC, a wholly owned subsidiary of the Kazakh state company KazTransGas JSC, for the Kyzyloi and Akkulka natural gas fields. The contract is for annual volumes up to 150 million cubic meters at an increased net price of USD65 per 1,000 cubic metres of gas net of marketing and distribution costs, and runs through to December 31, 2013.

A number of additional shallow gas prospects and leads have been identified based on seismic data as well as deeper potential. It is forecast that production can be significantly increased through the tie-in of already drilled wells that have not been produced to date, and through exploring for more gas. Of the last 13 shallow exploration wells drilled by Tethys in the Akkulka Block, 11 tested commercial gas. Tethys then suspended any further investment into gas development pending the realisation of a higher gas price which it has now achieved.

Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in Kazakhstan, Tajikistan and Uzbekistan. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.