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Tethys gives East Olimtoi exploration well update, presents at London conference

Tethys Petroleum (TSE:TPL) announced Tuesday that its East Olimtoi (EOL09) exploration well, located south of the town of Kulob and ten kilometres north of the Afghan border in Tajikistan, has been drilled to a total depth of 3,765 metres.

The well was drilled in the Akdzhar formation, with ongoing testing operations being undertaken on the overlying Bukhara and Alai formations as well.

The EOL09 exploration well is currently flowing a mixture of completion brine and oil from the upper Alai interval. The oil is of good quality, with an API gravity of about 36 degrees, Tethys said.

However, the well, which was drilled with barite as a weighting agent to decrease oil pressure and prevent blowouts, is displaying barite in the flow lines. Tethys said it believes the barite is inhibiting flow rate.

While the well will clean up naturally, the company said it may take some time. As a result, Tethys said it is evaluating different methods of expediting the clean-up of the well, including acidisation or nitrogen‐lifting using coiled tubing, each of which are subject to the availability of the appropriate equipment.

The company is also testing the lower Alai interval, where two oil-bearing zones appear to exist, and the upper Bukhara formation, which was found to have low permeability.

Still, while Tethys continues to focus on the upper portions of the interval, the company said it hopes to enter potential production at the lower Bukhara interval through the use of special techniques, including hydraulic fracture stimulation.

Tethys' Persea 1 exploration well, located near the town of Kurgon-Teppa and west of the EOL09 well, is progressing within the 12.25-inch hole section, it said.

The Persea 1 well, which has a planned total depth of 2,700 metres and is slated for completion in October 2011, is targeting the Bukhara formation, with the overlying Alai formation as a secondary target.

In other news, Tethys announced it will present at the FirstEnergy/Société Générale Global Energy Conference in London, England today. To join the webcast presentation, which will start at 1:40 pm GMT, visit http://jetslides.tv/lobby/500.

Based in Calgary, Alberta, Tethys, whose stock in Toronto spiked 11.54% to 58-cents as of 11:17 am EDT.