Tethys Petroleum fell following mixed drilling results on its exploration/appraisal well in the Akkulka Block in Kazakhstan.
Two reservoirs were found to be water bearing. However, the company also reports that initial drilling and electric log results show potential hydrocarbons in the Jurassic limestone sequence and lower down in a thin Jurassic sandstone near the current total depth of the well.
Dr David Robson, Executive Chairman and President of Tethys said: "Although the Dyna and Doris sands were water bearing in this well the potential oil in the Jurassic limestone and Jurassic sandstone sequence is encouraging, particularly with regard to the upside reserve potential. The good quality of the sheet and channel sands is also positive for further exploration in the area despite the tracking mechanism not working at this location."
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Tethys, dual listed in Canada and the main market of the London Stock Exchange, is focused on oil and gas exploration and production activities in Central Asia.
For their part, however, this is how analysts at Seymour Pierce reacted Friday morning: "The Dyna and Doris sands were found to be water bearing. Nevertheless, the quality of the sheet and channel sands is positive for further exploration in the area despite the trapping mechanism not working at this location.
"On this basis, whilst a minor setback, we reiterate our 'buy' recommendation and 72p/share price target."
CM
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