The 2010 work programme for Blocks 3 and 4 onshore Oman accelerates with focus on bringing the Barik and the Lower Al Bashir formations of Farha South in Block 3 into production as soon as possible. A production programme is being designed and evaluated with the view to the same. In parallel the Khufai discovery of Saiwan East block 4 will be appraised in order to assess possible production rates and to prove up additional reserves.

"We are delighted that Tethys is firmly set on the road to become an oil producer. The production program now being evaluated with respect to the Farha South reservoirs will be the first milestone. We are also looking forward with enthusiasm to further appraisal of the Saiwan East Khufai reservoir in Block 4. The reserve potential of this layer exceeds that of Farha South substantially, and the Khufai has the makings to turn into a major development," says Magnus Nordin, Managing Director of Tethys Oil AB.

It is contemplated that production will initially begin from the Farha South-3 well, which was drilled last year and produced from the Barik formation at a rate of 1,010 bopd. A horizontal well, Farha South-4, is also planned to be drilled to boost production. The exact location and timing of the new well will depend on the result of the ongoing 3D seismic survey over the Farha trend.

The appraisal work in the Saiwan East Structure in Block 4 will intensify with a step out well to Saiwan East-2, which made a new oil discovery in the Khufai formation when drilled last year. Saiwan East-3, an appraisal/development well with a horizontal section, is planned to be drilled 1.2 kilometers from the discovery well. In parallel, the processing and mapping of new 3D seismic information acquired in the autumn 2009 is ongoing. This appraisal work will guide the development of the Khufai reservoir.

Tethys has a 50 per cent interest in Blocks 3 and 4. CC Energy Development S.A.L. holds the remaining 50 per cent and is the operator.

This release is an extract of that published by the Issuer. Accordingly, MAC Capital Limited accepts no responsibility to the accuracy of the information provided.

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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