Tajikistan: Tethys Hikes Interest in Bokhtar PSC
Wednesday 14 December 2011
DUSHANBE (Press release) – Tethys Petroleum Ltd. (TSX: TPL)(LSE: TPL) has acquired 34% of the shares of Seven Stars Energy Corp. from its Tajik joint venture partner Sangam Ltd., increasing its interest in the Bokhtar (باختر) production sharing contract area to 85% from 51%.
- Tethys Petroleum’s 51% owned subsidiary, Kulob Petroleum Limited, holds the first ever Production Sharing Contract in Tajikistan. This is a 25-year contract with fixed economic terms for the course of the contract. The government takes a fixed portion of production that covers all taxes, royalties and levies. This involved working closely with all levels of government and amending legislation and shows the progressive approach the Tajik government is taking to investment in the oil and gas sector.
Bokhtar covers 35,000 km² unexplored in the Afghan-Tajik basin. The block is assigned an audited, unrisked prospective resource of 1.14 billion barrels oil equivalent. Tethys is shooting data with the ultimate goal of drilling the first deep presalt exploratory well at an early date.
Dr. David Robson, Chief Executive Officer of Tethys, said:
This is a great step forward that will allow Tethys a greater share in a very prospective, yet underexplored, area. I consider the Afghan-Tajik Basin and its extension the Amu-Darya Basin to be one of the most prolific in the world with giant and supergiant gas and condensate fields such as those in neighbouring Uzbekistan and in Turkmenistan. We are very pleased to have the continued support of our partners Sangam and will continue in ongoing discussions with potential farm-in partners with this acquisition providing a more efficient corporate structure for potential investors. This is a unique opportunity to now move forward and leverage a majority ownership in what Tethys regards as the jewel in the crown of the company.
Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of 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.