AKIPRESS.COM - Tethys Petroleum said that gas production at its Kazakhstan assets has more than doubled after a new phase of shallow gas output came on stream.

The new production was achieved on schedule, the Central Asia-focused oil and gas producer said, with a 10-day average of 559 Mm3/d.

A further increase in production is planned for the second quarter as two more previously tested wells are brought online, it added.

The news follows a new one-year gas sales contract announced in December, which increased the price of gas by 42 percent to $75/mcm.

The 2015 shallow gas programme officially began on January 1st as planned, Tethys said.

The company also said its recently installed dehydration system is performing well, and is expected to be commissioned in the next month.

The statement today comes about a month after Tethys decided to overhaul its board following the requisition of an EGM by shareholder Pope Asset Management that called for the removal of most of the company's previous directors.

Tethys also has assets in Georgia and Tajikistan, where the Central Asia-focused oil and gas company in is partnership with Total and CNPC on the huge Boktar development. In Georgia, it is in discussions with partner Georgian Oil and Gas to offset its current funding obligations of approximately US$5 million through reducing its interest.

City broker Cantor Fitzgerald says today’s update should be viewed positively by the market as it validates Tethys’ strategy of pursuing the shallow gas programme in Kazakhstan.

"We believe that once the gas dehydration unit and construction of shallow gas tie-ins for additional wells are approved by the state, further production increases could be recognised in the near-term," said analyst Sam Wahab.