Update on the transition to a production period of the Kul-Bas oil field (commercial production)
The Ministry of Energy of the Republic of Kazakhstan granted approval on December 19, 2025 for the transition of the Kul-Bas oil field to the production period until July 27, 2048. This approval is a crucial milestone for the company, as it ensures the continuation of production in Kul-Bas after the expiration of the current preparation period in July 2026. The next step is to sign an addendum for the underground use of Kul-Bas. contract reflecting the approved terms. The Company expects that this Addendum will be signed by the end of January 2026, subject to completion of the required formal procedures.
Operational update
Oil production from the KBD-02, KBD-06 and KBD-07 wells averaged approximately 425 tons per day in December. This period has seen fluctuations that reflect the continued optimization of surface facilities. Work is underway on one of the gas turbines and it is expected that it will support higher production levels once the unit returns to service. The commissioning activities for the new gas compressor are also continuing. If successful, the additional capacity is expected to support higher production. Design and construction work on the field camp, oil processing and storage capacity at the central processing facility in the Kul-Bas oil field is progressing. Design and construction work for the gas processing facility and the 18-kilometre gas pipeline are also progressing. Natural gas production from the Kyzyloi and Akkulka gas fields currently averages approximately 230,000 m³ per day from 21 gas wells.
Extension of the contract for underground use of the Akkulka gas field
The company has submitted an application to the Ministry of Energy of the Republic of Kazakhstan to extend the contract for underground use of the Akkulka gas field until December 2036, which currently expires in December 2026. The company expects to receive approval in January 2026, followed by the signing of the addendum to the Akkulka contract for underground use in February 2026, subject to completion of the required procedures.
Update on the voluntary removal from the Kazakhstan Stock Exchange
The Board of Directors of Tethys Petroleum Limited has approved a decision to proceed with a voluntary delisting of the Company’s securities from the Kazakhstan Stock Exchange (“KASE”). In accordance with this decision, the Company has submitted an application for voluntary delisting to KASE in accordance with the established procedure. Given the lack of meaningful trading activity on KASE for an extended period of time, the Board of Directors has concluded that maintaining a secondary listing on KASE would not provide practical benefits to shareholders. The Company’s principal listing and principal trading market will remain on the TSX Venture Exchange (“TSXV”).
About Tethys
Tethys focuses on oil and gas exploration and production activities in Central Asia.
Disclaimer
Some statements in this document are forward-looking. No part of this announcement constitutes or should be construed as an invitation or inducement to invest in the Company or any other entity, and shareholders of the Company are cautioned not to place undue reliance on the forward-looking statements. Except as required by applicable law, the Company undertakes no obligation to update or alter any forward-looking statements to reflect events occurring after the date of this announcement.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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