The testing operations of the heavy oil zones encountered in East Saiwan-2 on Block 4 onshore Oman have been concluded.

The objective of the testing was to verify mobility and produce heavy oil to surface and to assess possible production rates from the more than 400 metres of gross heavy oil column. Testing operations have now been completed, and the results so far have been cautiously encouraging. Liquid samples have been obtained from 3 of the 4 zones tested. Further evaluation of these samples will now be conducted. However, the results suggest that any potential production from the heavy oil in East Saiwan will require enhanced oil recovery techniques. No recovery factors can be established with the current data.

"The East Saiwan heavy oil remains an interesting project in our portfolio, but it will most probably involve considerable future investment. The work on the heavy oil in 2010 will be focused on defining the structure to get a better understanding of the resource base using among others data from the ongoing 3D seismic programme. Overall focus in 2010 will continue to be on the conventional light oil discoveries made in 2009 on Blocks 3 and 4, and to bring these into production" comments Tethys' Managing Director Magnus Nordin.

Tethys has a 50 per cent interest in the licences covering Blocks 3 and 4. Consolidated Contractors Energy Development (Oman) Ltd 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

NOTES FOR THE EDITOR: