Tethys Oil Commences Drilling of Saiwan East Well

Drilling of the Saiwan East-3 (“SE-3”) well on Block 4 onshore Oman has commenced. Well SE-3 is an appraisal well drilled to appraise and develop the discovery of light oil in the Khufai formation made in 2009.

Saiwan East-3 is being drilled as part of the appraisal and development of the Khufai formation in the Saiwan East structure that was discovered in June 2009 with the drilling of the SE-2 well, which found 27 meters of oil-bearing reservoir in the Khufai formation. The SE-3 drill site is located 1,200 meters to the southeast of SE-2 and was based on the results of the recently acquired 3D seismic in Block 4.

A vertical pilot hole will be drilled to a depth of 1,800 meters and then logged extensively. The pilot will be plugged back and a horizontal well is planned to be drilled to a maximum length of 1,000 meters. Once completed, a submersible pump will be run and production testing will be conducted.

The objectives of the well are to extend the hydrocarbon potential of the Khufai formation, to acquire a core from the Khufai, to acquire a complete set of electrical logs in the Khufai and to carry out a submersible pump test to measure the productivity of the Khufai.

Tethys has a 50 per cent interest in Blocks 4. CC Energy Development S.A.L. holds the remaining 50 per cent and is the operator.

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