The Saiwan East-2 well currently being drilled in Block 4 onshore Oman, has reached a depth of just over 1,400 metres. The three main target zones have been penetrated and found to be oil bearing. Drilling operations continue and Saiwan East-2 will be deepened.

Heavy oil saturation was found in the Miqrat and Amin sandstone formations and the Buah limestone. Cores have been obtained from all three zones. The well will be logged and cased after the deepening of the well to a final depth of around 2,400 meters.

The results so far are in line with expectations based on data from the previously drilled East Saiwan-1 well and indicate that the Saiwan structure may contain a large accumulation of heavier hydrocarbons. East Saiwan-2 is drilled some 12 kilometres north of East Saiwan-1. Production testing will be required to determine the mobility of the oil.

Following the encouraging results thus far, drilling operations will now continue to evaluate a deeper structure in the Abu Mahara sandstone formation. It is a previously untested potentially oil bearing structure.

Tethys has a 50 per cent interest in Block 4. CC Energy Development (Oman) SAL holds the remaining 50 per cent and is operator.

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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