Tethys Oil Completes Private Placement

Tethys Oil AB has, following authorization from the AGM of shareholders held on May 16, 2007, decided to conduct a private placement of 300,000 shares at a price of SEK 56 corresponding to just under 5 percent of the number of shares in issue after the completion of the private placement. After the private placement the number of shares in Tethys amounts to 6,041,760. The share capital of the company has increased by SEK 150,000 to SEK 3,020,880. The basis for the issue price has been the Company's market price defined as the average price during the last ten trading days. Proceeds to the company will amount to SEK 16,800,000 before issue costs.

The Board of Directors has concluded that the private placement is in the best interest of shareholders by enabling a strengthening of the Company's shareholder base including institutional shareholders. The proceeds will among others be used to intensify focus on the Company's project in Oman.

"We are extremely pleased to have received this strategic capital increase so soon after our successful drilling results on block 15 onshore Oman which will facilitate our ability to maintain a fast track approach to our continued work in relation to Block 15. In addition it is with great pleasure we welcome among our new shareholders such a strong institutional name as Catella," comments Tethys Oil Managing Director Magnus Nordin.

Erik Penser Fondkommission acted as financial adviser in connection with the Private Placement.