Tethys up on initial results from Persea exploration well in Tajikstan

Tethys Petroleum (TSE:TPL)(LON:TPL) saw its shares rally early Monday after it announced the initial results of its Persea 1 exploration well in Tajikstan, and its plans to carry out production testing on the well in the new year.

The Persea 1 well, drilled some five kilometres from the town of Kurgan Teppa, reached a total depth of 2,655 metres.

Wireline logs showed a 50 metre gross zone of possible hydrocarbons, which occur in crude oil, within a mixed sandstone and carbonate sequence assigned to the Alai formation - similar to the formation about to be tested in the East Olimtoi well (EOL09), the company said.

Because of hole stability issues, Tethys said the section was drilled with relatively high mudweights, which tends to mask hydrocarbon shows while drilling.

The company now plans to run 7-inch liner in preparation for a production test, with the aim of establishing commercial flow of hydrocarbons from this zone.

The actual testing will be carried out in the first half of 2012, with the cost to be financed by internally-generated cash flow, the company said.

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