Tethys gets 15-year extension to Kyzyloi production contract

GRAND CAYMAN, Cayman Islands -- Tethys Petroleum’s wholly owned subsidiary, TethysAralGaz, has received permission from Kazakhstan' s Ministry of Energy to extend the Kyzyloi Gas Production Contract for another 15 years, from June 14, 2014, to Dec. 31, 2029.

The Ministry of Energy has granted this contract extension following the Kazakh State Reserves Committee's (GKZ) approval of the new State Reserves for Kyzyloi previously announced in May 2014.

The Kyzyloi contract area has been increased by 56% to 449 sq km (110,950 acres) and now encompasses a larger gas bearing area including the AKK05 well, which will be worked over later in first-quarter 2015, and also the successful AKK08 and AKK10 gas wells.

John Bell, executive chairman, commented, "This very important gas production contract extension follows on from the Akkulka Exploration Contract Extension earlier this month, and is another manifestation of the good working relationship that the company has worked hard to build up with the Kazakh authorities. We see very good growth potential in the gas business over next few years both in terms of pricing and volume and this approval of Kyzyloi for an additional 15 years provides a solid production base from which to achieve this growth."