Tethys Petroleum doubles price of gas in Kazakhstan

Tethys Petroleum has doubled the net price of gas sold in Kazakhstan, the company announced Thursday.

The new gas price after marketing and distribution costs is $65, or $72.8 including VAT, per thousand cubic meters.

The price hike comes as its subsidiary TethysAralGas signed two gas contracts with Intergas Central Asia for the Kyzyloi and Akkulka natural gas fields.

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The company will supply up to 150m cubic metres at an increased price of $65 per thousand cubic metres through to December 31st.

Current total production in the area is 430,000 cubic metres or 2,530 barrels oil equivalent per day.

"A number of additional shallow gas prospects and leads have been identified based on seismic data as well as deeper potential," Tethys said in a statement.

"It is forecast that production can be significantly increased through the tie-in of already drilled wells that have not been produced to date, and through exploring for more gas. Of the last 13 shallow exploration wells drilled by Tethys in the Akkulka Block, 11 tested commercial gas."

Shares jumped 4.35% to 36.00p at 13:36 Thursday.

RD