Tethys to Appraise Doris Oil Discovery in Kazakhstan

Tethys has given further details on the testing of the recent AKD01 (Doris) exploration oil discovery on the Akkulka Block in Kazakhstan and has briefed on the Company's future plans to appraise the discovery.

The upper Cretaceous sandstone interval showed extremely good permeability (in excess of 1.7 Darcy) and a large investigated distance (in excess of 10 kilometers (6.25 miles)) and therefore a large connected volume (some 29 million stock tank barrels). This indicates a very high quality laterally extensive reservoir. The lower Dolomite zone also showed good permeability with a large investigated distance and significant connected volume, however further testing is required to confirm the lateral extent of the reservoir although Tethys has now interpreted a similar zone in a previously drilled well over 16 kilometers (10 miles) to the west. The well test interpretation was carried out by a third party engineering firm.

Graham Wall, Chief Operating Officer, commented, "These test analyses show extremely good reservoir properties, reservoir continuity and production potential, particularly in the upper Sandstone interval. This data will now be put into our appraisal model and it bodes extremely well for the effective development of this oil discovery with a limited number of wells and showing a potentially significant areal extent. These are great results."

Tethys also laid out its plans for appraisal of the AKD01 oil discovery and further exploration in the surrounding area. These plans are subject to approval by the appropriate Kazakh authorities.

It is planned to drill at least two appraisal wells on the AKD01 (Doris) oil discovery to evaluate and establish the size and potential of the discovery and provide the necessary data to obtain a production contract. These wells will be extensively evaluated with coring, detailed geophysical logging and testing. A further appraisal well may also be drilled if deemed necessary after evaluating the results of the first two wells. In addition Tethys plans to carry out a 3D seismic survey over the Doris discovery and shoot additional targeted 2D seismic lines to firm up further potential in the area. Tethys has already been approached by drilling contractors to provide rigs for this project and tenders have been issued for both drilling and the seismic program. The location of the first appraisal well (AKD02) has already been picked on existing seismic data and this well is expected to commence drilling in April 2010. The seismic program is also expected to commence in Q2 2010 and will be targeted to provide additional data for the second appraisal well which should commence drilling in the summer.

Tethys has identified several other prospects in the area which appear similar to the Doris oil discovery and now that a hydrocarbon system has been proven at the deeper levels the risk on these prospects is reduced significantly. Tethys is now in the process of demobilising its ZJ70 rig "Telesto" from the AKD01 location to a prospect located in a similar structural position some 50 kilometers (31 miles) to the northwest which has been named "Daphne". This well is expected to commence operations in late April and is planned to target the Cretaceous, Jurassic, Triassic and Permo-Carboniferous intervals. Further exploration drilling on the large surrounding Kul-Bas block is then planned.

Luka Chachibaia, Vice President Operations and Project Manager for the Akkulka/Kul-Bas deep appraisal and exploration program, commented, "We have a very busy year ahead with respect to our activities on both appraising the AKD01 oil discovery and hopefully finding more oil in our Kazakh Ustyurt basin acreage. We plan to operate two rigs simultaneously as well as conducting the seismic program and upgrading the testing facilities, and the fact that we have a significant planned programme that is supported by our experience and learning curve in the area will enable us to increase its cost effectiveness. We have recently strengthened the operations team to meet this challenge and we are looking forward to delivering technically successful results."