Beshtentak well BST20 has recently been worked over by applying modern perforating and acidisation techniques and applying natural gas lift. The well has tested oil at a rate of 533 barrels of oil per day (“bopd”), accompanied by 12,500 m³ of gas per day on a restricted choke (10 mm - 25/64”) with a flowing tubing head pressure of 26 atmospheres. The oil has an API gravity of 38° and no water is being produced. The well is now being placed on oil production and the gas tied into the nearby local gas grid. Sales agreements are currently being finalised and this well will add immediately to Tethys’ cash flow. There are other workover candidates on the Beshtentak field which has gross prospective resources of 11.7 million barrels of oil and 230 million m³ of gas as quoted by the Company’s independent reserves and resources assessment effective December 31, 2010.

Elsewhere in Tajikistan, the testing programme on the East Olimtoi EOL09 exploration oil discovery is continuing with acidisation about to be carried out on the Upper Bukhara/Lower Alai carbonate sequence. Initial results from this work should be available early in November, but transportation and logistics issues have slowed down the arrival in country of the equipment required to nitrogen lift this well in order to achieve optimum test performance. It is expected that this equipment should be in Tajikistan in early November.

The Persea PER01 exploration well is now drilling ahead after a short period of suspension waiting on additional casing to arrive in country. The well is currently at a depth of 1,573 metres and is expected to reach total depth of 2,700 metres. This well is targeting a four-way dip closed prospect at Alai and Bukhara levels close to the town of Kurgon-Teppa. If successful this well could be brought on stream quickly being in an easily accessible area with infrastructure.

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