The Omani government has ratified Swedish energy firm Tethys Oil’s farm-in into the onshore concession Block 56, according to the Oman Observer.
Tethys oil, had previously signed an agreement with Biyaq Oil Field Services, an investor in the license, to acquire a 20% interest in the Exploration and Production license covering Block 56.
Block 56 is located just south of the producing Blocks 3&4 in which Tethys Oil has a 30% non-operating interest. Of 11 wells drilled to date on the Block, all but one have encountered oil or oil shows, although none have been determined to be commercial. Current operator Medco Arabia has so far drilled three of these wells and is preparing a work programme to flow test them.
Tethys Oil’s Managing Director, Magnus Nordin, said, “On our newly acquired Block 56, where we hold a non-operated 20 per cent interest, a testing programme was successfully completed with oil to surface. We now know that one of the play concepts works, although commerciality is yet to be determined at least in the current price environment.”