Tethys Oil farms in to Block 56 onshore Oman

Tethys Oil AB, through subsidiary Tethys Oil Oman Onshore Ltd, will pay up to US$9.5 million in a cash and carry farm-in agreement with Biyaq Oil Field Services for 20% interest in the exploration and production licence covering Block 56 onshore Oman.

Block 56 covers 5,808 square kilometres in south-eastern Oman some 200 kilometres south of Blocks 3 and 4.

Eleven wells have been drilled on the block, three by operator Medco Arabia Ltd. All but one of the total wells drilled have encountered oil or oil shows. None have been determined to be commercial. A work programme to flow test up to three wells is being prepared.

The block lies at the intersection of different geological provinces including the South Oman salt basin. It offers exploration potential in multiple play concepts, both proven and unproven, Tethys Oil said.

The initial three-year exploration and production-sharing agreement for the block, signed in November 2014, was extended to December 2020.

A second exploration phase, ending in December 2023, is optional.

Interest in Block 56, upon completion of the transaction, will be operator Medco Arabia Ltd 50%, Intaj LLC 25%, Tethys Oil 20%, and Biyaq 5%.

Source: Oil & Gas Journal