TETHYS OIL I Oman

(och på Gotland)15 December 2009

TETHYS OIL IN BRIEF

Upstream company focused on

identification and development for

production of oil and natural gas assets,

with core area in Oman

The shares are listed on First North (TETY)

in Stockholm.

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TETHYS OCEAN

TETHYS OIL SHARES

Shares Issued 28 048 272

Ticker TETY.ST

Market Cap MSEK 1055

Daily Turnover

(average 2009)

Over 28 000

Price 08 December SEK 37.70

Warrants

Strike 23/ June 2010

4 025 663

Tethys Oil

OMX Oil, Gas &

Consumable Fuel

SEK/Share Turnover

10

20

30

40 100 000

75 000

50 000

25 000

2009 7 Dec 2009

TETHYS OIL – SHARE PRICE TO INDEX (YEAR TO YEAR)

0,00

10,00

20,00

30,00

40,00

TETHYS OIL – SHARE PRICE TO INDEX (5 YEARS)

Tethys Oil

OMX Oil, Gas &

Consumable Fuel

ATH, Dec 7, 2009: 38.80 SEK

TETHYS OIL – MAIN SHAREHOLDERS (October 31, 2009)

Shareholder Shares Per centSIX Sis AG 3 246 791 11,58%

BNP PARIBAS (SUISSE) S.A., W8IMY 2 416 232 8,61%

MZ Investments 2 308 420 8,23%

Vincent Hamilton * 2 121 213 7,56%

Bk Julius Baer und Co 1 972 717 7,03%

Magnus Nordin *** 1 298 856 4,63%

Lorito Holdings Ltd 1 055 594 3,76%

Handelsbanken Life & Pension Ltd 1 000 000 3,57%

Ancoria Insurance 782 800 2,79%

Jan Risberg 755 766 2,69%

John Hoey * 717 828 2,56%

Pictet & Cie 645 406 2,30%

Jonas Lindvall 568 000 2,03%

Jean-Marie Lattès 550 000 1,96%

Göran Källebo 406 000 1,45%

SEB Private Bank S.A., NQI 401 000 1,43%

Cogeval S.A 400 000 1,43%

Nazco Marine FZC 350 000 1,25%

Grebbeshult Holding AB 339 000 1,21%

Nordnet Pensionsförsäkringar AB 318 310 1,13%

Total, 20 largest shareholders 21 653 933 77,20%

Other shareholders 6 395 158 22,80%

TOTAL 28 049 091 100,00%

TETHYS OIL – BOARD OF DIRECTORS AND MANAGEMENT

Vincent Hamilton,Chairman & Chief Operating Officer

Magnus NordinManaging Director

Jonas LindvallManager Oman

John Hoey

Håkan Ehrenblad

Jan Risberg

Executive Directors Non Executive Directors

TETHYS OIL FINANCIALS AS PER SEPTEMBER 30 REPORT

Cash & equivalents MSEK 14

Proceeds after Q3 MSEK 14

Long term debt MSEK 0

TETHYS OIL - THE CYCLE OF AN OIL AND GAS PROJECT

Investment Phase

Payout Phase

Oman

TETHYS OIL – OMAN

TETHYS OIL – OMAN STATISTICS

Area 212 450 km2

Population 2.7 million

First oil discovery 1964

Proven Oil Reserve 5.6 billion barrels

Proven Gas Reserve 24.37 trillion cubic feet

Oil Production 2008 800 000 BOPD

Natural Gas Production 2008 2 500 000 bcfd

TETHYS OIL – OUR POSITION IN OMAN ACREAGE OWNERSHIP

Tethys Oil is the second largest acreage owner in Oman!

Block Operator Acreage (km2)

6 PDO-Shell 99,486

15 / 3 / 4 Tethys Oil 34,514

3 / 4 CCED 29,011

51Hunt Oman

Exploration17,892

• Total Area: 34,500 km2

• Four separate projects

• Block 15: JEBEL ASWAD

• Block 3: FARHA SOUTH

• Block 4: SAIWAN EAST HEAVY OIL

• Block 4: SAIWAN EAST LIGHT OIL

TETHYS OIL – ONSHORE OMAN BLOCKS 3, 4 AND 15

3

4

15

Block 15

• Tethys Oil Operator 40%

• Odin Energi Partner 60%

• EPSA signed October

2005

• Jebel Aswad-1 horizontal

re-entry in June 2007.

• Jebel Aswad -2 well

drilled summer 2008.

BLOCK 15 - LOCATION MAP

BLOCK 15 & ADJACENT BLOCKS

Block 15Tethys Oil

Block 47RAKP

Block 30RAKP

Block 43BMOL

Block 31RAKP

Block 27OXY

Block 9OXY

Block 44PTTEP

Block 5Daleel

JEBEL ASWAD - WELLS LOCATION AND TRAJECTORY

BLOCK 15, JAS-1 STK2 (NATIH) – FINAL TRAJECTORY

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• Natih Fm flowed:

- 11.03 mmscfpd of gas

- 793 bpd of 57°API

condensate

- total of 2,626 boepd

through a 1 inch choke

• Flow rates constrained due to

production tubing size

restriction

• Black smoke indicates burning

oil

BLOCK 15, JAS-1 STK2 (NATIH) – TEST

JAS-1 & JAS-2 WELLS LOCATION & TRAJECTORY

BLOCK 15 – JAS-2 STK2 (NATIH) – FINAL TRAJECTORY

JAS-2 STK2 (NATIH) – BASIC DATA

• Spudded on 2 June 2008

• Completed on 26 August 2008

• 85 days in total

• 927 m of horizontal drilling in Natih A Formation

• Log reponse similar to JAS-1 STK2

• Oil shows

• Natih Fm flowed water, apparently coming from a fracture at the

end of the sidetrack. 3 attempts have been made to block the

water using inflatable packers, but none of the packers held =>

Suspended well

Blocks 3 & 4

TETHYS OIL – BLOCKS 3 & 4 ONSHORE OMAN

3

4

•Tethys Oil 50%

• CC Energy operator 50%

• EPSA acquired December 2007

• Total Area: 33,125 km2

• > 30,000 km of 2D seismic

TETHYS OIL – BLOCKS 3 & 4 ONSHORE OMAN

3

4

• 27 wells drilled, of which 18 had shows

Contingent

Resource

(i.e. tested or

w/ good

shows)

Contingent

Resource

(i.e. tested or

w/ good

shows)

Huwayr Deep`

Abu Zeinah

Deep

North Saiwan

Saih Hajmah

Farha South

East Saiwan

Potential

Resource

(i.e.

prospect)

Al Saad –

Qulam North

Maeen -

Qarn Sahmah

Flank

Huwayr Deep`

Abu Zeinah

Deep

North Saiwan

Saih Hajmah

Farha South

East Saiwan

Potential

Resource

(i.e.

prospect)

Al Saad –

Qulam North

Maeen -

Qarn Sahmah

Flank

BLOCK 3 & 4 - RESOURCE POTENTIAL

• 1 oil discovery:

Farha South

• 1 Heavy oil find:

Saiwan East

Block 3

Farha South light oil

• Drilled in 1986 by JPD to

3,850m

• Encountered fair shows

in Abu Mahara, Khufai,

Buah, Amin and Miqrat

Fm

• Flowed 260 bbl of 40°API

oil and 266 Mcf gas

• Delineated by 3 wells

• Estimated 4-6 million bbls

of recoverable oil from

thin sandstone layers

• Estimated natural flow at

100 bbls/day

BLOCK 3 FAHRA SOUTH OIL DISCOVERY

34

Lwr Al Bashair

Amin

Buah

Farha South

FarhaSouth-1

FarhaSouth-1

FARHA SOUTH DIP SEISMIC LINE

FarhaSouth-1

FS-3 well located 1 km.

to southeast and

drilled horizontally

back towards FS-1 well

BLOCK 3 - FARHA SOUTH-3

TETHYS OIL – FARHA SOUTH 3

• Drilled in spring of 2009

•Total depth 1800 m tvd

• 800 m deviated/horisontal section

Flowed 754 BOPD

Mean Resources

estimated at 9.2 MMBBL

FARHA SOUTH-3 HORIZOTAL SECTION

754 BOPD

41 API~100 BOPD

41 API

BLOCK 3 - FARHA SOUTH 1&3 / 3H1 WELLS - SCHEME

379 BOPD

42 API

754 BOPD

41 API~100 BOPD

41 API

BLOCK 3 - FARHA SOUTH 1&3 / 3H1 WELLS - SCHEME

Spudded on 9 February 2009

TD reached on 25 March 2009

TD FS-3 = 2050 MDRT and TD FS-

3H1 = 2723 MDRT

Encountered good oil and gas

shows in Barik Fm (new play),

as well as in Lower Al Bashair

Fm as expected

Lower Al Bashair Fm tested upon

completion on 2 April 2009,

giving 754 bopd of 41° API

Re-tested late November – early

December 2009, giving 379

bopd of 42°API

BLOCK 3 – FARHA SOUTH-3 / 3H1 WELL – BASIC DATA

Farha South-3, spring 2009

Lower al Bashir (sandstone):

Tested 754 BOPD in April 2009

Barik (sandstone):

Tested 379 BOPD in November 2009

Lower Al Bashir is estimated to

contain some 8 - 10 million barrels of

recoverable oil.

The Barik sandstone will have a

significant impact on the reserve

potential of the Farha South structure

and the surrounding area.

FARHA SOUTH-3 ON BLOCK 3

FarhaSouth

FARHA TREND

Block 4

Saiwan East

Light and heavy oil

Contingent

Resource

(i.e. tested or

w/ good

shows)

Contingent

Resource

(i.e. tested or

w/ good

shows)

Huwayr Deep`

Abu Zeinah

Deep

North Saiwan

Saih Hajmah

Farha South

East Saiwan

Potential

Resource

(i.e.

prospect)

Al Saad –

Qulam North

Maeen -

Qarn Sahmah

Flank

Huwayr Deep`

Abu Zeinah

Deep

North Saiwan

Saih Hajmah

Farha South

East Saiwan

Potential

Resource

(i.e.

prospect)

Al Saad –

Qulam North

Maeen -

Qarn Sahmah

Flank

BLOCK 3 & 4 - RESOURCE POTENTIAL

B 3

B 4

Saiwan East Area

EAST SAIWAN - HEAVY AND CONVENTIONAL OIL

B3

SE

B4

SAIWAN EAST - TECHNICAL STUDY SEPTEMBER 2009

B3

SE

B4

Drilled in 2004 by EnCana to a

TD of 1333m

Targeted a mapped fault-

bounded feature, a potential

regional pinch-out in the Amin

sandstones

Encountered frequent heavy

oil shows in Buah, Amin and

Miqrat

Logs indicated fair to excellent

reservoir quality

SAIWAN EAST, HEAVY OIL, 1 WELL

Bounding fault

Top Amin TWT Grid (Equipoise)

Three structural highs

FAULT??

Three way dip closure

Bounding fault in the E,

throwing to the SE

More oil potential in the

three culminations along

the southeasterly fault

and relatively shallow.

Saiwan East – 1 well drilled

slightly down-dip of the

structure crest

Nearby potential for lighter

gravity oil updip (Amin

Fm pinch out and

Vendian graben trap)

SAIWAN EAST – STRUCTURAL MAP

5 km

Saiwan East - 2

Saiwan East - 1Saiwan - 1

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SAIWAN EAST - VOLUMES

Upper Miqrat Depth

Grid OWC 1039m (MD)

Lower Miqrat- Amin Depth

Grid OWC 1155m (MD)Buah Depth Grid

ODT 1309m (MD)

STOIIP (MMStb) 635 STOIIP (MMStb) 322 STOIIP (MMStb) 140

Saiwan East resources are presented for all 3 oil pools

as probabalistic STOIIP (Stock Tank Original Oil In Place)

With resource potential of more than 1000 MMBO

53.5 Km²88.5 Km² 52.5 Km²

Drilled in June 2009 to a TD of

2300 m

Encountered more than 430

metres net of heavy oil in

Buah, Amin and Miqrat

Logs indicated fair to excellent

reservoir quality

No attempt to flow heavy

layers

TETHYS OIL – SAIWAN EAST-2 HEAVY OIL LAYERS

o Heavy oil <20° API

o Exploitation

o Makhaizna operated by Occidental

o 15° API gravity

o 2,300 million boip

o 1 billion barrels recoverable

o 1000 m depth

o 60,000 bopd

o Will peak at 150,000 bopd

Habhab~ 1.8 Bbn bbls OIP

Makaizna (Oxy)2.35 Bbn bblsOIP

HEAVY OIL – OXY MUKHAIZNA FIELD

HEAVY OIL – OXY MUKHAIZNA FIELD

Saiwan East

December

Attempt to

flow Heavy

Oil

Heavy Oil

Light Oil

SAIWAN EAST-2 - STRATIGRAPHY

• PreCambrian Khufai Formation

• Depth of 1655 meters

• Gross oil column of 30 meters

• Flowed 280 barrels per day, 33 API

• Light oil similar to Farha South-3

Oil stained sample from 1660 meters

SAIWAN EAST AREA – LIGHT OIL ZONE

o ~400 sq km

o Covering the entire

Saiwan East structure

o Defining the extension

of light oil and heavy

oil reservoirs

o Started late November

o Expected to take

about 90 days

o Performed by BGP Oil

& Gas Services of

China

SAIWAN EAST STRUCTURE – 3D SEISMIC SURVEY

Saiwan East-2, spring 2009

Khufai (limestone):

Tested 280 BOPD in Q2 2009

Miqrat and Amin (sandstones) Buah

(limestone) :

- 400 metres column of heavy oil saturation

- Will be tested in December 2009

Estimated heavy oil in place: more than

one billion barrels. If the oil reserves

are moveable, the rewards could be

dramatic.

The Khufai to suffered from skin

damage. The true production potential

is estimated to be more than 3 times

higher.

SAIWAN EAST-2 ON BLOCK 4

Saiwan East On

Going

3D Seismic

Khufai

Gotland

GOTLAND ONSHORE

• Oil previously produced =>

viable petroleum system

• Production from Ordovician

reef structures (on a trend

across the Baltic Sea)

• Only a limited number of reefs

mapped and drilled on

Gotland

GOTLAND PRODUCTION HISTORY

• Old data and literature

assembled

• Resolution maps to be

updated with existing seismic

data

• Gravemetric field

study to be

conducted in

order to identify

individual briefs

GOTLAND PRODUCTION HISTORY

GOTLAND SURFACE OVERLAY

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GOTLAND SURFACE OVERLAY

GOTLAND STÖRRE – LICENSE INFORMATION

TETHYS OIL – GOTLAND

Flow Heavy Oil

Calculate Reserves

Light Oil

• Block 3: FARHA SOUTH

• Block 4: SAIWAN EAST LIGHT OIL

• Block 15: JEBEL ASWAD

Appraising in parallel

•Block 4: SAIWAN EAST HEAVY OIL

EVALUATING FAST TRACK CHOICE OMAN

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