Tethys Closes Oman Acqusition

Tethys Oil AB has acquired 50 per cent interest in Blocks 3 and 4 onshore Oman from Norwegian Energy Company (Noreco) affiliate Altinex. Blocks 3 and 4 onshore Oman cover a combined area of over 30,000 square km. Block 3 contains the South Farha oil discovery, originally made in 1986, with an estimated 4-6 million barrels of recoverable oil from thin sandstone layers.

More than 30,000 km of 2D seismic has been collected and 27 wells have been drilled on the Blocks, of which 18 wells have encountered oil shows. A large number of prospects have been identified on the blocks. The remaining 50 per cent of the Blocks is held by Encana International Oman Ltd, who is the operator.

The consideration for the acquisition amounts to MUSD 2.0 , which has been paid through the placement of 226,000 Tethys shares at SEK 56. In order to strengthen the liquidity with MSEK 7 for anticipated investments in the acquired Blocks during 2008, Tethys has issued an additional 125 000 shares also at SEK 56. The new share issues are done in line with authorizations from the AGM in May 2007.