The Tafejjart-1 well (TAJ-1) in the Bouanane licence, onshore Morocco, has reached a depth of 2,585 metres below ground level. The drilling target is expected to be reached within the next few hundred meters. According to the operator, the estimated total expenditures in the license have now exceeded MUSD 12 and Tethys is now a paying partner.

The formation at current depth of 2,585 meters is the Silurian shales. Current operation is to set 9 5/8 inch (244 mm) casing at this depth. Drilling will then proceed to the target formations, potentially gas bearing Ordovician sandstones, which are expected within the next few hundred meters.

Tethys is carried by the operator, Dana Petroleum, through the first MUSD 12 of total expenditure in the licence. According to the operator, the estimated total expenditures in the license have now exceeded MUSD 12. Under the existing agreements, once total expenditures exceed MUSD 12, Tethys becomes a paying partner. Tethys has a 12.5% net interest in the licence and is under the existing agreements liable for 16.66% of expenditures exceeding MUSD12. Partners in the licence are Dana Petroleum with 50% net interest, Eastern Petroleum with 12.5% net interest, and ONHYM (government company) with 25% carried interest.

"Besides Tethys' core operations in our Omani appraisal operations, we are thrilled to participate in a classical wildcat well as this one. This is a project with a huge upside, and although the MUSD 12 carry may now be exceeded we still get to participate in an exciting well paying only a fraction of the total well costs", comments Tethys' Managing Director Magnus Nordin.

About Tethys Oil AB

Tethys Oil is a Swedish energy company focused on identification and development for production of oil and natural gas assets in the Middle East, North Africa and Europe. Tethys' strategy is to primarily 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.

The company has interests in licences in Oman, Morocco, France, Spain, Turkey and Sweden. The shares are listed on First North (TETY) in Stockholm. Remium AB is Certified Adviser.

Website: www.tethysoil.com

For further information, please contact
Magnus Nordin
Managing Director
Phone +46 8 679 4995
magnus@tethysoil.com

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