Tethys Oil

Earnings Release • Dec 12, 2012

Press release 2012-12-12

FIELD DEVELOPMENT PLAN FOR BLOCKS 3 & 4 ONSHORE THE SULTANATE OF OMAN APPROVED

Tethys is pleased to report that the Ministry of Oil and Gas of the Sultanate of Oman has approved the Field Development Plan for Blocks 3 and 4, and consequently the declaration of commerciality where the Exploration and Production (EPSA) term of Block 3 and 4 is extended for a period of 30 years from the deemed discovery date of July 20, 2010.

"We are extremely pleased with the approvals and would like to take this opportunity to express our sincere thanks to the Ministry of Oil and Gas of the Sultanate of Oman, to the operator CCED and our partner Mitsui. Tethys is proud to be part of these efforts to turn Blocks 3 and 4 into a major oil producing region," says Tethys Managing Director Magnus Nordin.

Tethys Oil AB, through its wholly owned subsidiary Tethys Oil Block 3 and 4 ltd, has a 30 per cent interest in Blocks 3 and 4. Partners are Mitsui E&P Middle East B.V. with 20 per cent and the operator CC Energy Development S.A.L. (Oman branch) holding the remaining 50 per cent.

For further information, please contact

Magnus Nordin, Managing Director, phone +46 70 576 6555; magnus@tethysoil.com -----------------------------------------------------------------------------------------------------------------

Tethys Oil AB (publ)

Tethys Oil is a Swedish energy company focused on exploration and production of oil and natural gas. Tethys Oil's core area is Oman, where the company is one of the largest onshore oil and gas concession holders. Tethys Oil also has exploration and production assets onshore France, Lithuania and Sweden.

The shares are listed on First North (TETY) in Stockholm. Remium AB is Certified Adviser.

Website: www.tethysoil.com