Tethys Flows More Than 500 bopd at Tajik Well

Tethys announced results of a successful workover of well BST20 in the Beshtentak oilfield in Tajikistan, and also gave a brief update on other Tajik drilling and production operations.

Beshtentak well BST20 has recently been worked over by applying modern perforating and acidization techniques and applying natural gas lift. The well has tested oil at a rate of 533 barrels of oil per day ("bopd"), accompanied by 12,500 cubic meters (441 thousand cubic feet) of gas per day on a restricted choke (10 mm - 25/64 inch) with a flowing tubing head pressure of 26 atmospheres (377 psi). The oil has an API gravity of 38 degrees and no water is being produced. The well is now being placed on oil production and the gas tied into the nearby local gas grid. Sales agreements are currently being finalized and this well will add immediately to Tethys' cash flow. There are other workover candidates on the Beshtentak field which has gross prospective resources of 11.7 million barrels of oil and 16.1 billion cubic feet (0.23 billion cubic meters) of gas as quoted by the Company's independent reserves and resources assessment effective December 31, 2010.

Graham Wall, Chief Operating Officer of Tethys, commented, "We are very pleased with the performance of this well. By applying more modern techniques and technology we have achieved good oil flow at low cost adding immediately to our cash flow. We are working on a short-term program to convert further prospective resources into reserves. We have our own trucking capacity available in the country and we are planning for further work on the field once the results of this well are fully analyzed."

Elsewhere in Tajikistan, the testing program on the East Olimtoi EOL09 exploration oil discovery is continuing with acidization about to be carried out on the Upper Bukhara/Lower Alai carbonate sequence. Initial results from this work should be available early in November, but transportation and logistics issues have slowed down the arrival in country of the equipment required to nitrogen lift this well in order to achieve optimum test performance. It is expected that this equipment should be in Tajikistan in early November.

The Persea PER01 exploration well is now drilling ahead after a short period of suspension waiting on additional casing to arrive in country. The well is currently at a depth of 1,573 meters and is expected to reach total depth of 2,700 meters. This well is targeting a four-way dip closed prospect at Alai and Bukhara levels close to the town of Kurgon-Teppa. If successful this well could be brought on stream quickly being in an easily accessible area with infrastructure.