Tethys Petroleum Limited

Tethys Petroleum Limited

November 30, 2007 09:17 ET

Tethys Petroleum Limited: Kazakhstan Operations Update

BOZOI, KAZAKHSTAN--(Marketwire - Nov. 30, 2007) - Tethys Petroleum Limited ("Tethys") (TSX:TPL) today provided an update on its operations in the Akkulka and Kyzyloi areas of Kazakhstan, in particular on the AKK12 gas exploration/appraisal well.

The AKK12 well, which was drilled approximately 1.4 miles (2.25 kilometres) east of the AKK11 discovery well to explore the extent of the AKK11 accumulation, reached a total depth of 2,004 feet (611 metres) and was subsequently logged and cased. Electric logs indicate that the main Kyzyloi sand zone, the base of which is some 25 feet (8 metres) deeper than in the AKK11 well, was gas bearing with no observed gas-water-contact ("GWC") and an initial 33 feet (10 metre) interval was perforated and flow tested. The well flowed gas at an estimated rate of some 5.3 MMcf/d (150 Mcm/d) on a 100/64ths inch (40 mm) choke with a flowing tubing head pressure of 102 psig (6.9 atmospheres). In addition the gas flow was accompanied by a flow of water, this estimated at approximately 180 barrels per day. This water flow made measurement of the precise gas flow rate more difficult.

The accompanying water flow either indicates that the base of the perforated interval is close to the GWC for the eastern part of the AKK11 accumulation, or else that water is being produced from other sands in the well through communication behind the 6 5/8" (168mm) casing string. Operations are currently underway to seal off the water producing interval prior to continuing the testing programme by re-perforating the upper part of the current test interval and adding an additional 13 feet (4 metres) of perforations over a contiguous higher sandstone interval.

The site is prepared for the third well in the 10-well program, AKK13, some 3.6 miles (5.7 km) north-west of AKK12, which will commence drilling operations, once testing is completed on AKK12. This is a separate accumulation similar to the one discovered by the AKK11 well. Dependent on the results of this drilling the rig will either remain in the Central Akkulka area or will be moved to commence drilling the first exploration well on the large Kul-Bas block (well KB01).

Meanwhile, preparations continue on the Kyzyloi Field itself for first commercial gas production. The Field is now fully tied-in to the export system and the first stage inspection by the senior governmental commission has now been successfully completed with their final review expected during the next week. Given final approval by the commission commercial gas production is expected shortly thereafter.

Dr David Robson, Chairman, President and Chief Executive Officer of Tethys, commented, "The AKK12 well has successfully appraised the eastward extension of our recent AKK11 gas discovery. The well has shown already the potential for good gas production, particularly with the fact that the well has also been lifting water. Further work should ascertain whether or not this well has established the position of the GWC for this accumulation, this information being important for future development planning and we will now be carrying out a program to gather the maximum possible amount of data from this well. On the Kyzyloi development itself work is proceeding well, and we are very hopeful that we will obtain all necessary approvals to commence commercial gas production in the nearest future. "

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

This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to our operations. Such forward looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties outlined under the section titles "Risk Factors and Uncertainties" in our prospectus (available at www.sedar.com). Should one or more of these risks materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. Additional information in respect of the Kyzyloi shallow gas field and Akkulka area (also referred to as the Akkulka Block), including location, area, geologic age and lithology, depth, estimated costs and gas marketing information, appears in Tethys' prospectus dated June 18, 2007.

Tethys Petroleum Limited is registered in Guernsey, Channel Islands with registered number 41075 and is listed on the Toronto Stock Exchange (TSX) with the symbol "TPL".

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