Mr. Casey McCandless reports
CORPORATE UPDATE
Tethys Petroleum Ltd. has provided an update on the company's operations in the Republic of Kazakhstan.
Regulatory update
On March 12, Tethys received gas flaring permits for exploratory wells from the Ministry of Energy. Subsequently, Tethys completed an application for an ecology permit, which is essential for oil production from the KBD-10 and KBD-11 wells, scheduled for April. The company hopes to receive the approval by April 5.
Regarding the commercial licence, while the working group for the gas processing program of the Ministry of Energy provided a positive review on March 1, the ministry has not yet issued the official minutes of the working group, causing a delay beyond the March 15 deadline. Consequently, Tethys has initiated the process of reapplying for the ecology permit necessary for commercial production. The company is hoping to receive the commercial licence by the end of May. The oil handling and gas utilization facilities are not yet complete, but the company expects to have them in place and operational when the commercial licence is received.
Reserve report
Tethys engaged McDaniel and Associates Consultants to provide a reserve report as of Dec. 31, 2023. This report has been completed and was prepared in compliance with National Instrument 51-101 (Standards of Disclosure for Oil and Gas Activities) and the Canadian oil and gas evaluation handbook. Over all, the total proven and total proven plus probable reserves are up about 3.7 million barrels of oil equivalent (8 per cent) and 3.5 million boe (4 per cent), respectively. The attached table summarizes the results from the report.
NATIONAL INSTRUMENT 51-101 RESERVES
2023 2022
Reserve category Barrels of oil Barrels of oil
equivalent (net Mboe) equivalent (net Mboe)
Total proven reserves 49,493 45,814
Total proven and probable 85,676 82,193
Total proven, probable and possible 126,454 124,534
2023 2022
Total of NPV after Total of NPV after
taxes ($M (U.S.)) taxes ($M (U.S.))
Reserve category 0.00% 10.0% 0.00% 10.0%
Total proven reserves $640,549 $383,223 $603,795 $361,274
Total proven and probable $1,190,616 $628,707 $1,174,301 $610,474
Total proven, probable and possible $1,876,916 $883,849 $1,888,997 $891,946
Crude oil NPV Crude oil NPV
Reserve category 0.00% 10.0% 0.00% 10.0%
Total proven reserves $628,240 $373,235 $576,885 $340,032
Total proven and probable $1,166,837 $612,370 $1,130,528 $580,471
Total proven, probable and possible $1,845,856 $863,768 $1,836,017 $857,825
Natural gas NPV Natural gas NPV
Reserve category 0.00% 10.0% 0.00% 10.0%
Total proven reserves $12,309 $9,988 $26,910 $21,242
Total proven and probable $23,779 $16,337 $43,773 $30,003
Total proven, probable and possible $31,060 $20,081 $52,980 $34,121
The difference in the estimated reserve value on the gas fields is due to a reduction in the expected prices.
About Tethys Petroleum Ltd.
Tethys is focused on oil and gas exploration and production activities in central Asia and the Caspian region.
We seek Safe Harbor.
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