HIGHLIGHTS

• Autumn work programme onshore Oman agreed:
- Testing of the potentially oil bearing Barik reservoir on Block 3
- Additional tests on the Lower Al Bashir layer on Block 3, which flowed 754 bopd on test in April
- Testing of the heavy oil zones encountered in Saiwan East-2 on Block 4
- A comprehensive 3D-sesmic programme on the Saiwan East structure on Block 4

• Tethys Oil received TSEK 13,616 (approximately MUSD 1.9) from the exercise of 592,000 warrants. Proceeds were received in October 2009

• As at 30 September 2009 there have been no sales of oil and gas in Tethys Oil, nor for the equivalent period of last year

• Result for the first nine months 2009 amounted to TSEK -52,612 (TSEK -3,759 for the corresponding period last year) and TSEK -24,442 (TSEK 4,872) for the third quarter 2009. The result for the first nine months 2009 has been significantly impacted by net foreign exchange losses amounting to TSEK 27,143 due to a weaker US dollar. The majority of these exchange rate losses are translation differences and are therefore non cash related items. Furthermore, write downs of TSEK 15,778, mainly regarding Morocco, have negatively affected the result of the first nine months 2009

• Earnings per share amounted to SEK - 2.04 (SEK - 0.17) for the first nine months 2009 and SEK – 0.89 (SEK 0.20) for the third quarter 2009

• Cash and cash equivalents as per 30 September 2009 amounted to TSEK 13,864 (TSEK 29,886). Proceeds of TSEK 13,616 from the warrant exercise mentioned above were received after the reporting period and are not included in cash and cash equivalents as per this report. Oil and gas investments amounted to TSEK 73,612 mainly related to Oman, Blocks 3 and 4

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: