Well AKD01 encountered two oil bearing zones, the lower zone being a an Upper Jurassic carbonate sequence at approximately 2,355 metres and an upper, lower Cretaceous sandstone, zone at approximately 2,174 metres. Oil shows were also encountered in the Triassic sequence but not tested. Oil quality is very good in both zones, with the lower zone having 46 degree API low sulphur crude and the upper zone 37 degree API low sulphur crude. The 180 metre vertical separation between these two reservoirs and the different oil gravities suggests that they may not have a common oil‐water contact but should be able to be developed simultaneously with a dual completion. The combined flow rate of these two tests in this well was over 8,200 barrels of fluid per day.

 

The upper lower Cretaceous sandstone interval showed extremely good permeability (in excess of 1.2 Darcy) and a large investigated distance and therefore a large connected volume, that indicates a very high quality laterally extensive reservoir. The lower carbonate zone also showed good permeability with a large investigated distance and significant connected volume. The Company commenced the appraisal of the Doris discovery and further exploration of the surrounding acreage in 2010 and has to date drilled 5 wells and has also acquired a 3D seismic survey over the discovery with some additional exploration 2D seismic lines. The Company is currently producing oil under a Pilot Production License and will file for a Production Contract which it expects to receive in 2013. Oil from the same Doris discovery horizons has tested successfully from wells AKD05 and 6 and there is a further discovery, Dione, in an Upper Jurassic sand in well AKD03.

 

There is very good potential exploration in the area. Further similar prospects have been mapped in the Akkulka and Kul-Bas block near to Doris and the results of the AKD01, AKD03, AKD05 and AKD06 wells significantly improve the exploration potential of these prospects. The appraisal programme on the Doris oil discovery and further exploration on the Akkulka block is continuing. In April 2012, the updated prospective resource report for Tethys’ Kazakhstan assets prepared by Gustavson Associates, estimates gross unrisked recoverable mean prospective oil resources of 1.23 billion barrels of oil and 634.4 bcf of gas, which is 1,336 billion barrels of oil equivalent (BOE).

 

The AKD07 is the first appraisal/exploration well since that report to target this exploration upside and is located to the south-east of the producing Doris field. It is designed to target a potential downdip field extension at the Cretaceous Aptian sand level in what is believed to be a channel sand system (the “Doris” sand), whilst simultaneously targeting an exciting exploration prospect (named "Dyna"). This Dyna prospect has 128 million barrels gross mean unrisked recoverable prospective resources attributed to it (Gustavson Associates). The well also has a deeper Jurassic level target as interpreted from the 3D seismic.