Tethys Oil to Increase Stake in Omani Block 56

Tethys Oil to Increase Stake in Omani Block 56

The transaction will increase Tethys' interest in Block 56 from 20 to 65 percent. Tethys Oil will assume operatorship of the block from Medco, who will retain a 5 percent interest in the license. The transaction is subject to government approval.

In consideration for the 45 per cent interest acquired, Tethys Oil will pay $5 million to Medco and will also carry Medco up to $2 million of future expenditure. The agreement further includes additional consideration in the case of a declaration of commerciality under the terms of the license.

Tethys Oil acquired its initial 20 percent interest in the block in the fourth quarter 2019. Block 56 covers an area of 5,808 sq km in the south-eastern part of Oman approximately 200 km south of Blocks 3&4. Testing operations of three