A production test using a down hole Electrical Submersible Pump (ESP) has been completed in the Barik formation in the Farha South-3 well on Block 3 onshore Oman. The excellent flow rate obtained using the pump amounted to 1,010 bopd and is almost three times the original rate measured in November 2009. This test makes the Barik formation a prime candidate for an early production program now planned to commence later this year.

The ESP pump was installed in the well using the MB Petroleum LLC's 450 hp MB 49 work over rig, the same rig that was used for production tests on Blocks 3 and 4 in November and December 2009. Over a 6 hour flow period the well produced an average rate of 1,010 barrels of oil per day of 42 API crude with a low gas-oil ratio and no water.

"We are delighted that the Barik formation responds so well when pumped and we can now look forward to significant production rates for an early production program. Our plans to be an oil producing company in 2010 could not have started better," comments Tethys' Managing Director Magnus Nordin.

Both the successful wells drilled last year, the Farha South-3 on Block 3 and the East Saiwan-2 well on Block 4, are suitable for early production programs. The Farha South-3 well tested 40+ deg. API oil from two layers, the Barik and the Lower Al Bashir. The East Saiwan-2 well tested 33 deg. API oil from the Khufai limestone section in addition to identifying a 400+ metre thick heavy oil section.

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

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