Tethys Petroleum Limited is an oil & gas exploration & production company listed on the main board of the Toronto Stock Exchange in Canada and on the Kazakhstan Stock Exchange (“KASE”) in Almaty. Tethys is focused on the prolific sedimentary basins of Central Asia and the Caspian Region, with its current projects in Kazakhstan, Tajikistan and Uzbekistan. Tethys Petroleum is the only independent oil & gas company with operations in these three Central Asian Republics.

In Kazakhstan, Tethys Petroleum Limited operates through its wholly owned service company, Tethys Services Kazakhstan LLP and holds licences for a few highly potential blocks.

Kyzyloi and Akkulka Dry Gas Developments
Tethys currently produces gas from the two gas fields Kyzyloi and Akkulka which are known as one of the first dry gas developments carried out in Kazakhstan with one of the first tie-ins by a non-State company to a major gas trunkline in Central Asia. The blocks are located by the Aral Sea in the North Ustyurt area. Phase 1 production from the Kyzyloi Production Contract commenced in December 2007. Since then Tethys has made 11 new gas discoveries in the Akkulka block and the first of these deposits has now been tied into the system as Phase 2, under the Akkulka Gas Production Contract.  This brings potential production up to 1 million cubic metres (mcm) of gas per day, and the system is designed to handle up to 2.2 mcm per day as Phase 3.  Tethys hopes that this project will form the basis of a significant gas development project supplying gas to both the domestic and export markets.

Akkulka Deep Oil Discovery ‘Doris’ 
In February 2010 at deeper levels in the same area the Company made what it believes to be a significant oil discovery, named ‘Doris’ under the Akkulka Exploration Contract. The Company is active on several exploration and appraisal wells in this block. The AKD01 (Doris) well tested at a total of over 6,800 barrels (908 tonnes) of oil per day (bopd) from two zones at approximately 2,355 metres and 2,174 metres.  The oil is sweet and light, and this is one of the first oil discoveries in this part of the basin. The test production commenced in September 2010 at rates up 750 bopd and following the approval of the Pilot Production Project this is expected to increase to 3-4,000 bopd by end of 2011. The Company is installing oil production infrastructure at the field and will construct an oil-loading terminal to support increasing oil production. Further exploration and appraisal activities are underway to fully delineate the size of the field and prepare for a full field development.

Kul-Bas
The Kul-Bas Exploration and Production Contract area surrounds the Akkulka Block and has similar geological, tectonic and structural features to the Akkulka Block. It is a large exploration area of approximately 7,632 sq. km. The Company considers this area to be underexplored and commenced a new wildcat exploration well at the end of 2010 with more prospects to follow in 2011.

Social Responsibility and Local Content
Tethys supports the communities in which it operates through the employment of local personnel and participation in community projects. Over 99% of Tethys’ employees in Kazakhstan are Kazakh nationals and the Company has offices in Almaty, Aktobe, Astana and Bozoi. Tethys works closely with local authorities of Aktobe region and contributes to the social and economic development in the area around Shalkar and Bozoi.

Other Projects
Tethys currently produces oil in the southwest of Uzbekistan from what was the country’s second-largest oil field, North Urtabulak. In Tajikistan, Tethys Petroleum is exploring a very large area covering some 35,000 sq. km. where the Company had recently made an oil find, and has the only Production Sharing Contract (PSC) in the country. The Company also owns and operates its own drilling rigs, pipelines, production facilities and related equipment. 
As a part of Company’s business development plan, Tethys is looking into expanding its operations in the Region through involvement in new and existing oil & gas projects.