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Tethys reveals 9M2020 production results at Upper Aptian on KBD-02 sites

Oil&Gas Materials 28 October 2020 17:30 (UTC +04:00)
Tethys reveals 9M2020 production results at Upper Aptian on KBD-02 sites

BAKU, Azerbaijan, Oct. 28

By Nargiz Sadikhova - Trend:

Tethys Petroleum Limited which operates assets in Kazakhstan and Georgia has filed its Interim Results for 3Q2020 and for 9M2020, Trend reports citing the company.

Operations update Tethys has retired the AGR note with a final payment of $2.9 million and received the benefit of retiring the debt at a discount. Production from the Upper Aptian on KBD-02 has been about 17,500 barrels in total through October 22 and is currently producing approximately 1,500 bopd using a 9mm choke.

The zone has encountered some gas which while long term positive, may limit how much oil can be produced as there is a limitation as to how much gas can be flared. Annuity and Life Reassurance Ltd has exercised an option to purchase half of the $4.8 million convertible bonds held by Gemini IT Consultants DMCC (Gemini).

Contemporaneous with this purchase Annuity and Life Reassurance Ltd is selling shares in a private transaction to Tethys Chairman William Wells and clients managed by Pope Asset Management LLC. Gemini has entered into an agreement to loan Tethys approximately $2.5 million for 2 years at a rate of 6 percent. This loan can be prepaid without penalty if cheaper financing can be found.

Pope Investments II LLC has exercised an option to purchase 2.2 million shares from APL Construction LLP at a cost of approximately $1.4 million. Contemporaneous with this purchase, Pope Investments II LLC is selling an equal amount of shares in a private transaction to Tethys Chairman William Wells and clients managed by Pope Asset Management LLC.

This purchase price is based upon an earlier purchase from Impex Trade Limited and Global Invest Services Limited at cost (60 cents per share) plus an approximate rate of 9 percent interest.

“Management believes that the provision of this option and the existing shareholder agreement reflect a unique spirit of partnership and cooperation between the major shareholders working together for the positive development of Tethys,” the company said.

APL has entered into an agreement to loan Tethys approximately $1.4 million for 2 years at a rate of 6 percent. This loan can be prepaid without penalty if cheaper financing can be found.

The spudding of the AKK-33 and AKD-12 wells have taken place and management expects to receive a test result by the end of November on both wells. Management does not anticipate drilling any more wells in the Klymene field until after the 3D seismic and interpretation are acquired (expected by June 2021).

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Follow the author on Twitter: @nargiz_sadikh

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