Tethys Petroleum Limited

Tethys Petroleum Limited

August 14, 2007 09:29 ET

Tethys Makes New Gas Discovery

BOZOI, KAZAKHSTAN--(Marketwire - Aug. 14, 2007) - Tethys Petroleum Limited ("TPL") (TSX:TPL) today announced a new gas discovery in its Akkulka Exploration Contract Area in its west Aral properties in Kazakhstan.

The Akkulka AKK09 exploration well tested dry gas at a rate of 6.7 million cubic feet per day (MMcf/d) (190 thousand cubic metres per day (Mcm/d)), on a restricted 50/64 inch (20mm) choke with a flowing tubing head pressure of 527 psig (35.9 atmospheres) from a 26 feet (8 metre) interval, at a depth of some 1,706 feet (520 metres) BKB, 1,132 feet (345 metres) TVDss. The well has been tested at higher rates on larger choke sizes, but problems with the measuring equipment make these data difficult to verify. No reservoir depletion was shown on the test, which confirms the high quality of the shallow gas sands in this area.

The AKK09 well is located some 4.85 miles (7.76 km) west of the AKK04 Central Akkulka Field discovery well, and some 9.20 miles (14.7 km) south-east of the Kyzyloi Field. Development of the AKK09 accumulation would involve a tie-in to the recently completed TPL gas export line, probably via the Central Akkulka Field.

TPL has recently acquired additional seismic data over the central part of the 341,121 acre (1,381 sq km) Akkulka block and is currently firming up a location for an additional exploration well in this area where the sand quality has been shown to be good, both by the Central Akkulka discovery well, AKK04, which flowed at a rate of 8.8 MMcf/d (249 Mcm/d), and now with the AKK09 well. This new well (to be named AKK11) is planned to commence once drilling equipment can be mobilised from the AKK10 (North Kyzyloi) well, which is about to be tested.

TPL is currently involved in the development of its Kyzyloi shallow gas field, exploration drilling in the surrounding Akkulka area, and seismic acquisition in the large Kul-Bas exploration block, all of these being situated in south-western Kazakhstan, to the west of the Aral Sea.

To date TPL has tested some 26 MMcf/d (736 Mcm/d) from its exploration discoveries in the Akkulka block. This is in addition to the 25 MMcf/d (708 Mcm/d) already tested from the Kyzyloi Field itself. TPL completed construction and tested the Kyzyloi gas export pipeline last week, and first gas sales (through the Bukhara -Urals gas trunkline system) are expected to commence in October of this year, with an initial sales rate of 22 MMscf/d (623 Mcm/d).

Dr David Robson, Chairman, President and Chief Executive Officer of TPL, commented, "The AKK09 well has tested at very good rates and confirms our geological interpretation in the central part of the Akkulka area, offering good potential for further discoveries in the vicinity. This has encouraged us to locate a further exploration well in this area which we hope to commence shortly based on our new seismic data. Following on from our announcement that we have completed and fully tested the Kyzyloi export pipeline, we are now in an excellent position to move forward with developing a successful gas project in the west Aral properties."

TPL is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republic of Kazakhstan and more recently the Republic of Tajikistan. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.

This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to our operations. Such forward looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties outlined under the section titles "Risk Factors and Uncertainties" in our prospectus (available at www.sedar.com). Should one or more of these risks materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. Additional information in respect of the Kyzyloi shallow gas filed and Akkulka area (also referred to as the Akkulka Block), including location, area, geologic age and lithology, depth, estimated costs and gas marketing information, appears in TPL's prospectus dated June 18, 2007.

Tethys Petroleum Limited is registered in Guernsey, Channel Islands with registered number 41075 and is listed on the Toronto Stock Exchange (TSX) with the symbol "TPL".

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