Swedish energy company Tethys Oil is gearing up for potential commercial success in two oil & gas blocks it operates in Oman. The firm, known for its revenues from non-operated Blocks 3&4 concession, is now focusing on exploring Blocks 56, 49, and 58 in Dhofar Governorate.
In Block 58, covering 4,557 km2 in the South Oman Salt Basin, Tethys Oil is set to drill an exploration well, Kunooz-1, in Q2 of this year. The well targets a prospect in the Fahd South area of the licence, marking a significant move in the company's exploration activities in Oman.
“Targeting more than 100 mmbo (million barrels of oil) of unrisked prospective resources, a success on Block 58 would of course dwarf anything else we are currently doing,” said Tethys Oil managing director Magnus Nordin in the company’s newly published 2023 Annual Report.
In 2020, Block 58 was awarded a 100% interest share, presenting numerous promising prospects in the Fahd and South Lahan areas. These areas are strategically located near Block 6's Harweel cluster operated by PDO. Analysis of 2D and 3D seismic data indicates significant potential, with previous wells encountering hydrocarbon shows and multiple play concepts.
Continued exploration
Tethys Oil is particularly focused on exploring the South Lahan area, which has undergone thorough 3D seismic data processing and interpretation. This effort has revealed several viable drilling prospects, according to the company.
The report added that, “The complete prospect portfolio for South Lahan will be peer reviewed in early 2024.” In anticipation of commercial success in the block, Tethys Oil has begun exploring a farm-out of part of its share in the concession. “Constructive discussions are currently ongoing with a select group of companies which could result in a farm-out,” the energy firm noted.
In Block 56, the company aims to capitalise on the success of an Extended Well Test (EWT) centred on the Al Jumd discovery. The EWT, conducted from April to September last year, confirmed the production capability and resource potential of the Al Jumd discovery. Four wells were utilised during the EWT, yielding oil flows ranging from 150 to 700 barrels per day, with a promising total output of 60,369 barrels.
Identifying hydrocarbons
Additionally, Tethys Oil plans to conduct testing on two other exploration wells, Menna-1 and Sarha-3, in early 2024, to identify prospects and leads in the block.
In Block 49, another of Tethys Oil’s operated assets in Oman, the company is moving forward with plans to retest its Thameen-1 well, drilled in 2021. Although initial logs indicated a 30-metre thick hydrocarbon-bearing zone, subsequent testing failed to yield hydrocarbon flows to the surface.
However, further analysis of samples suggests that while the reservoir rock has good porosity, it is tight and virtually impermeable. Tethys Oil believes that hydrocarbons could flow if the reservoir rock is artificially fractured, based on ongoing studies.
“Successfully flowing hydrocarbons to surface through this operation would turn the inconclusive Thameen-1 well into a discovery and thus determine the Company’s further course of action in relation to a second exploration phase,” it stated.
