MUSCAT, APRIL 7 –
Swedish based international energy firm has dubbed 2017 as a “successful year” on the back of ballooning reserves and promising leads in its Blocks 3&4 in eastern Oman, supplemented by the acquisition of its first 100 per cent owned concession — Block 49.
Tethys Oil AB, through its wholly owned subsidiary Tethys Oil Block 3 & 4 Ltd, has a 30 per cent interest in Blocks 3&4. Partners are Mitsui E&P Middle East BV with 20 per cent, with operator CC Energy Development SAL (Oman branch) owning the balance 50 per cent.
“2017 turned out to be a very successful year for Tethys Oil, where our ability for organic value creation proved itself and where we further increased our future possibilities by adding the exploration Block 49 to our assets,” said Magnus Nordin (pictured), Managing Director — Tethys Oil.
“Through exploration drilling in our existing Blocks 3&4, we discovered significant amounts of oil in previously undrilled structures. In fact so much oil, that our combined resources base of 3P reserves and 3C contingent resources more than doubled from 29.7 million barrels of oil (mmbo) to 59.7 mmbo. The increase in 2P reserves represents an internal reserve replacement ratio of 114 per cent,” he added in a letter to shareholders prefacing the newly issued 2017 Annual Report.
New discoveries at Erfan, Ulfan and Samah within Blocks 3&4 have added more than 17 million barrels of 2C contingent resources, as well as the majority of around 5 million barrels of 2P reserves added in 2017, the Managing Director said.
“A major focus for 2018 will be to complete the appraisal programmes on these discoveries and develop them into new oilfields and in the process mature the resources into reserves. In addition to our three successful exploration wells, we also put five previously undrilled fault blocks on the Farha South field and one previously undrilled structure on the Shahd field into production,” he stated.
The Stockholm-headquartered firm also announced the commencement of its work programme for its newly acquired Block 49 licence in the Rub Al Khali desert on the Sultanate’s border with Saudi Arabia. Under an Exploration and Production Sharing Agreement (EPSA) signed for the 15,439 sq km concession last November, Tethys Oil acquired a 100 per cent interest in the concession as well as the operatorship licence.
“Block 49 is the kind of opportunity Tethys Oil has been pursuing for some time,” said Nordin. “We are grateful to the Government of the Sultanate of Oman for giving us the opportunity to explore this part of Oman. Tethys Oil’s 10 years of experience in Oman, local knowledge and strong technical team, makes Tethys Oil well positioned to turn Block 49 into a success.”
The work programme on the block has already kicked off with geological studies and review of legacy seismic data, he added.
MUSCAT, APRIL 7 –