HIGHLIGHTS

• Initial evaluation of Saiwan East – 2 completed:
- over 400 metres column of heavy oil saturation in the upper target formations confirmed
- a deeper lighter oil zone confirmed, which produced 280 BOPD on test

• Farha South-3 well onshore Oman drilled with excellent results – flowed 754 BOPD

• The Tafejjart-1 well onshore Morocco concluded at a depth of 3,274 metres

• Tethys Oil completed a private placement of 2,000,000 shares in June – proceeds of MSEK 40 before issue costs

• As of June 18, 2009, the shares of Tethys Oil AB are traded on First North Premier

• As at 30 June 2009 there have been no sales of oil and gas in Tethys Oil, nor for the equivalent period of last year

• Result for the first half 2009 amounted to TSEK – 28,172 (TSEK – 8,631 for the corresponding period last year) and TSEK – 29,740 (TSEK – 3,173) for the second quarter 2009. The result for the first half 2009 has been significantly impacted by net foreign exchange losses amounting to TSEK - 6,370 due to a weaker US dollar. The majority of these exchange rate losses are translation differences and are therefore non cash related items. Furthermore, write downs of TSEK 15,559, mainly regarding Morocco, have negatively affected the result of the first half 2009

• Earnings per share amounted to SEK -1.13 (SEK – 0.40) for the first half 2009 and SEK - 1.17 (SEK – 0.13) for the second quarter 2009

• Cash and cash equivalents as per 30 June 2009 amounted to TSEK 29,249 (TSEK 29,886). Oil and gas investments amounted to TSEK 51,983 mainly related to Oman, Blocks 3 and 4

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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