The 2009 autumn work programme on Blocks 3 and 4 onshore Oman has been agreed. The Barik sandstone, a previously unmapped oil bearing layer discovered on Block 3 earlier this year, will be tested. Drill stem tests will also be performed on the heavy oil zones of Block 4. Further, a 3D-sesmic programme will be launched covering 400 square kilometres of the heavy and light oil bearing Saiwan East structure on Block 4.

The Farha South-3 well on Block 3, drilled in the spring of this year, flowed 754 bopd from the Lower Al Bashair sandstone formation. The well results also indicated the potential of previously unmapped oil bearing layers. Most interesting is the Barik sandstone, which is one of Oman's best producing reservoirs. Oil shows similar to those recorded in the deeper oil producing Lower Al Bashiar sandstone were also observed in the shallower potentially oil bearing Barik sandstone. Farha South-3 will be re-entered with a workover rig, and production tests will be performed on the Lower Al Bashiar and Barik sandstones.

Once the work on Farha South-3 has been finalized, the rig will move to Block 4 to test the heavy oil zones of Saiwan East. Saiwan East-2, drilled in May 2009, confirmed the presence of heavy oil. A gross heavy oil column of more than 400 metres covering the Miqrat, Amin and Buah reservoirs was measured. The workover rig will run drill stem tests equipment to test all three heavy oil zones.

A 3D-seismic programme will be launched during the autumn, covering 400 square kilometres of the Saiwan East structure. The main target for this seismic programme is to map the extension of the Khufai limestone reservoir, as well as the heavy oil zones. The Khufai limestone was penetrated during the drilling of Saiwan East-2 and flowed 280 bbls a day on test.

Tethys has a 50 per cent interest in 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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