Tethys Oil is a Swedish energy company focused on identification and development for production of oil and natural gas assets. Tethys’ core area is the Sultanate of Oman, where the company is the second largest onshore oil and gas concession-holder with licence interests in three onshore blocks. Tethys also has licences onshore France, Lithuania and Sweden. Tethys’ strategy is to invest in projects in areas with known oil and natural gas discoveries that have not been properly appraised using modern technology. In this way, high returns can be achieved with limited risk.
Drilling of the Skomantai-1 well on the Gargzdai license onshore Lithuania has started. The primary target of this exploration well is a previously undrilled oil prospect near producing fields. The well will also penetrate a thick shale section which will be evaluated for potential unconventional hydrocarbons. Drilling operations are expected to last for two months.
The Skomantai-1 well is planned to be drilled to a total measured depth of 2,381 metres, and a true vertical depth of 2,042 metres. The well will target potential oil in Cambrian sandstones, which is the same as in all the producing oil fields on the license. The well will also investigate potential for unconventional hydrocarbons in the Silurian source rock shales, located above the Cambrian sandstones. The drill site is located 2 km north of the Pociai field, in western Lithuania.
The Gargzdai license is owned by Lithuanian Company UAB Minijos Nafta. Tethys Oil has a 25% indirect interest in the licence through an agreement with Odin Energi A/S.