<p>
<strong>HIGHLIGHTS</strong></p>
<ul>
<li>
During the first quarter 2011, Tethys Oil sold 16,032 barrels of oil after
government take from the Early Production System ("EPS") on Block 3
Oman, resulting in net sales of TSEK 9,397 (TSEK -)</li>
<li>
Result for the first quarter 2011 amounted to TSEK -14,735 (TSEK -6,685 for
the corresponding period last year). The result has been significantly impacted
by non cash related currency exchange losses</li>
<li>
Earnings per share amounted to SEK -0.45 (SEK -0.24) for the first quarter
2011</li>
<li>
Cash and cash equivalents as per 31 March 2011 amounted to TSEK 183,648 (TSEK
190,512). Remaining carry as per 31 March 2011 on Blocks 3 and 4 from Mitsui
amounts to MUSD 36. Oil and gas investments during the first quarter 2011
amounted to TSEK 15,426 (TSEK 31,443)</li>
<li>
During the first quarter 2011, a total of 62,214 barrels were produced under
the EPS. Tethys’ share of the test production oil amounts to 30 per cent,
or 18,664 barrels, before government take</li>
</ul>
<ul>
<li>
Well Farha South-6 completed and put on test production – initial flow rate
in excess of 1,000 BOPD</li>
<li>
Tethys acquires additional license in France</li>
<li>
Saiwan East-7 well encounters heavy oil – no flows established</li>
<li>
Work programme onshore Oman accelerates – second rig contracted</li>
<li>
Tethys launches field studies on Baltic island of Gotland</li>
<li>
Horizontal section in Saiwan East-2 completed – well undergoes long term
production test</li>
<li>
Saiwan East-6 finalized in first quarter 2011 with no production flows</li>
<li>
Saiwan East-4 encounters different quality oil from previous Saiwan wells –
no flows established</li>
</ul>
<p>
</p>
<p>
For further information, please contact Magnus Nordin,</p>
<p>
Managing Director,</p>
<p>
phone +46 705 766 555; magnus@tethysoil.com</p>
<p>
</p>
<p>
<strong>(For full report, please see attached file)</strong></p>
