Tethys and partner CCED (Oman) Ltd (operator) have contracted MB Petroleum LLC to provide the MB 49 work over rig to conduct testing operations on Blocks 3 and 4 onshore Oman. The 450 hp rig is currently being mobilized on Block 3 and testing operations will begin in the next couple of days. The Barik sandstone, which displayed excellent oil shows whilst drilling, was not fully evaluated at the time and will now be tested

The Farha South-3 well was drilled to appraise the Farha South oil discovery in February and March of this year on Block 3. The Lower Al Bashir sandstone tested more than 754 bopd. The main objective of this additional test is to assess the productivity of a previously untested and potentially oil bearing reservoir encountered above the Lower Al Bashir. The Barik sandstone, had excellent oil shows when it was drilled, but it was neither logged nor tested at the time. Additional tests will also be performed on the Lower Al Bashir layer.

Based on data from previous operators, it is estimated that the Lower Al Bashir layer could contain some 8 to 10 million barrels of recoverable oil. Data obtained while drilling suggest that the Barik sandstone is considerably thicker than the Lower Al Bashir layer. If the testing of the Barik sandstone is successful, it could have an important impact on the reserve potential of the Farha South structure.

After work on the Farha South structure has been completed, the rig will move to test the heavy oil zones encountered in East Saiwan-2 on block 4, drilled in May/June this year.

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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