Tethys Petroleum Confirms Tajik Tie Up With Total And China

Jun. 18, 2013 2:28 PM ET
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Short Only

Contributor Since 2009

Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of listed companies across the globe daily. We are one of the fastest growing financial media portals in the world. The group also operates hugely successful “investor forums” where three or four companies present to an audience of high net sophisticated investors, fund managers, hedge funds, private client brokers and analysts. Ian Mclelland founded Proactiveinvestors in 2006 as a way to channel his own views on companies small and mid-cap public companies. What started as a hobby quickly turned into a full time job as the website's readership exploded. One2One forums were added later in 2006, and within two years the company had expanded its operations into Canada and Australia. In 2009 the company expanded into Germany and finally into the US in 2010. Proactiveinvestors is now one of the fastest growing global financial media organizations in the world receiving more than one million visitors per month, with investor forums held across the globe on a regular basis.

Tethys Petroleum (LON:TPL) (TSE:TPL) has confirmed its farm-out deal with French major Total and the China National Petroleum Corporation (CNPC).

Total and CNPC each now own a one-third stake in the Bokhtar venture, in Tajikistan, while Tethys's 85% owned Kulob Petroleum subsidiary has the other third.

Additionally, the Tajik authorities have awarded the partners new acreage - a further 1,186 square kilometres - in the area. Also, the initial period under the production sharing contract has now been extended until 2020.

Under the terms of the farm-out Kulob will receive a US$63mln payment for past costs, as well as a 'carry' on future work of up to US$80mln. As a result, it expects that it will only have to contribute US$9mln to the 2014 work program.

It says the details of next year's plans will be announced shortly, but the deal will allow the consortium to progress exploration plans with further seismic acquisition and the drilling of deep exploration wells to test the potential giant deposits thought to be present in the area.

The area is an extension of the Amu Darya Basin, which, according to a statement released by Tethys, contains some of the world's largest gas and condensate fields.

"We believe the Bokhtar PSC is a world class asset with enormous potential," Tethys president Dr David Robson said.

"The strengths brought to this project by our new partners, Total and CNPC, means we are in a position to rapidly explore and develop this potential using all available techniques and technologies and with the financial strength to maximise success."

The Bokhtar production sharing contract area is believed to host a massive 27.5 billion barrels of oil equivalent, comprising 114 trillion cubic feet of gas and 8.5 billion barrels of oil.

The joint venture will be operated by the Bokhtar Operating Company, which is owned by the three partners.

Tethys Petroleum has a strong foothold on its assets in Central Asia with enormous potential for future growth. Aside from Tajikistan, the company also holds properties in Kazakhstan and Uzbekistan, where just last month the company signed a Protocol of Intent with the Uzbek State oil and gas company, Uzbekneftegaz (UNG), for exploration work in the North Ustyurt Basin of Northern Uzbekistan.

In London, Tethys shares were up 4.5% after the announcement. The stock has more than doubled since early December.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.