Drilling of the Saiwan East-2 well on Block 4 onshore Oman has commenced. The objective of the well is three oil zones found in an earlier well, Saiwan East-1. That well was drilled in 2005 by the previous license holders to a depth of 1,333 metres and logged about 42 metres of oil saturation in the Miqrat, Amin and Buah formations. The well was not tested due to the low gravity of the oil encountered. Saiwan East-2 will be drilled 12 kilometres from the discovery well Saiwan East-1.

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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