Dear Friends and Investors,

It is time to address the events and result for Tethys’ third quarter 2024.

Financially the numbers are quite satisfactory as oil prices achieved for the sales during the quarter remained strong, and production from Blocks 3&4 increased as operator CCED was able to mitigate the weather and other effects that impacted production in the second quarter. We remain optimistic that production will continue to stabilise during the fourth quarter and that production for the full year will come in within our guidance.

On Block 56 we have had an intense and constructive dialogue with the Omani Ministry of Energy and Minerals regarding the proposed Field Development Plan (“FDP”) for the Block. At the time of writing, we are optimistic that the dialogue is coming to an end and that FDP approval is a few weeks away. We are eager to receive approval as soon as possible to be able to get on with the work of implementing the FDP and bring the block on stream.

On Block 58 the long awaited Kunooz-1 well spudded in mid-August. The well has taken longer than expected as some operational difficulties were encountered in the main target sections. The main reservoir targets were the Precambrian Carbonates of the Birba, Buah and Khufai formations. These were found to be highly fractured. Total losses of drilling fluid were encountered so no returns were received at surface. The entire, more than 500-meter-thick, Carbonate section was drilled blind, using water-based drilling fluid. Subsequent logging suggests low matrix porosity but good connectivity in the fracture zones. This is potentially good as fractures, as we have learned from experience from similar reservoir rocks in Block 4, are quite important for well productivity. So arguably reservoir risk associated with this high profile well has dropped but we do not know if the fractures are filled with water or hydrocarbons. The only way to find out is to complete the well for open hole production and then open it up for a flow test.

Work to carry out the test is ongoing, and we expect to have some idea of what is in the reservoir within some three to four weeks.

This is all very exciting. And more excitement was added on September 13th when Australian oil company Roc Oil Ltd (Roc) announced their intention to acquire all the outstanding shares of Tethys for cash. Roc is a subsidiary of Shanghai Stock Exchange listed Hainan Mining and part of the Fosun Group of China. Roc filed the formal Offering Memorandum with the Nasdaq Stockholm exchange on Friday the 25th of October. Roc has a portfolio that complements Tethys well and the offer is a direct result of the Strategic Review instigated by the Board of Directors of Tethys on February 7th this year. As previously announced, Tethys’ Board has recommended Tethys’ shareholders to accept the offer. But the decision rests with our shareholders.

So stay with us. Times are more than ordinarily exciting, even for this industry. Tethys may soon no longer be a public company, but we will remain dedicated to creating value for all our stakeholders including our investor(s).

Stockholm, November 2024
Magnus Nordin
Managing Director