Tethys Oil signs EPSA for Block 58 onshore Oman

Tethys Oil signed an exploration and production sharing agreement (EPSA) with the government of the Sultanate of Oman for Block 58 onshore Oman.

The EPSA for Block 58 covers an initial exploration period of 3 years with an optional extension period of another 3 years. In case of a commercial oil or gas discovery, the EPSA will be transformed in to a 15-year production license which can be extended for another 5 years. In case of a commercial discovery, an Oman Government Co. has a right to acquire up to a 30% interest in Block 58 against refunding of past expenditure.

The initial work commitments during the first period include a 3D seismic campaign and drilling of two exploration wells.

The block, in the southern part of the Sultanate adjacent to Tethys’s operated exploration license Block 49, will be operated through Tethys’s wholly owned subsidiary Tethys Oil Qatbeet Ltd. with 100% license interest.

Block 58 is in the Dhofar Governorate and covers an area of 4,557 sq km. It straddles the western flank of the South Oman Salt basin and the Western Deformation front. A total of 7,600 km of 2D seismic and 1,100 sq km of 3D seismic data acquired by previous operators has been made available to Tethys as well as raw logs and well reports from two wells drilled within the block boundaries. Both wells encountered hydrocarbon shows. Multiple play concepts are believed to exist within the block boundaries, including plays familiar to Tethys, with several leads identified.