Drilling of the Saiwan East-3 ("SE-3") well on Block 4 onshore Oman has commenced. Well SE-3 is an appraisal well drilled to appraise and develop the discovery of light oil in the Khufai formation made in 2009.

Saiwan East-3 is being drilled as part of the appraisal and development of the Khufai formation in the Saiwan East structure that was discovered in June 2009 with the drilling of the SE-2 well, which found 27 metres of oil-bearing reservoir in the Khufai formation. The SE-3 drill site is located 1,200 metres to the southeast of SE-2 and was based on the results of the recently acquired 3D seismic in Block 4.

A vertical pilot hole will be drilled to a depth of 1,800 metres and then logged extensively. The pilot will be plugged back and a horizontal well is planned to be drilled to a maximum length of 1,000 metres. Once completed, a submersible pump will be run and production testing will be conducted.

The objectives of the well are to extend the hydrocarbon potential of the Khufai formation, to acquire a core from the Khufai, to acquire a complete set of electrical logs in the Khufai and to carry out a submersible pump test to measure the productivity of the Khufai.

Tethys has a 50 per cent interest in Blocks 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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