www.tethysoil.com

Interim report Q3 2013

www.tethysoil.com

An oil company delivering solid growth

• Founded 2001

• MUSD 400 oil and gas company

• A share price rise of more than 600 percent since IPO

• Average daily production ~ 4,700 barrels of oil

• Interests in oil producing licenses onshore Oman and Lithuania

“We combine growth with low risk by the

strategy to search for oil and gas in areas

where findings previously have been made,

but was never put into commercial

production. This means lower risk and higher

potential than in traditional exploration.”

Market cap

www.tethysoil.com

Producing assets in Oman and Lithuania

Oman Area Interest Phase

Blocks 3 & 4 34,610 km2 30% Production

Block 15 1,389 km2

40% Exploration

Lithuania Area Interest Phase

Gargzdai 884 km2 25% Production

Rietavas 1,594 km2 14%* Exploration

Raseiniai 1,535 km2 26%* Exploration

Licence Area Interest Phase

France Attila 1,986 km2 40% Exploration

France Alès 215 km2 37.5% Exploration

Sweden Gotland 581 km2 100 % Exploration

* For full diclosure, see the annual report 2012

www.tethysoil.com

Focus on appraisal projects

Operational targets:

• Develop Tethys Oil’s business as an

attractive licence holder and partner

• Focus on developing the assets in

Oman

• Evaluation of both conventional and

unconventional assets in Lithuania

• Actively evaluate new projects

www.tethysoil.com

Financial targets

Long term capital structure targets:

$

Target Status Q3, 2013

Debt/equity ratio of 30-40% 37%

Net debt/EBITDA of up to 2x 0.43*

Strong cash position to have

the ability to grow

MSEK 246

*Last twelve months

www.tethysoil.com

Financials P&L Q3 2013

Q3 2013 Q3 2012 +/-

Revenue (MSEK) 142 116 22,4%

EBITDA (MSEK) 96 77 24,7%

Result for the period (MSEK) 52 46 13,0%

Operating cash flow (MSEK) 68 38 78,9%

EBITDA-margin (%) 67,6 66,4

EBIT-margin (%) 42,3 53,4

Earnings per share (SEK) 1,46 1,35 8,1%

Cash flow per share (SEK) 1,92 1,11 71,9%

www.tethysoil.com

Sales

Sales growth Over/underlift

7

0

20

40

60

80

100

120

140

160

180

-30,0

-20,0

-10,0

0,0

10,0

20,0

30,0

40,0

50,0

60,0

Q3 Q4 2013 Q1 Q2 Q3

Sales Oil and gas, MSEK Sales growth %

% MSEK

0

50 000

100 000

150 000

200 000

250 000

Q3 Q4 2013 Q1 Q2 Q3

Bbl

Sold volumes Produced volumes after government take

• Underlift position per 30 Sept, 30 404 barrels

• Underlift increase in Q3 of 10 600 barrels

www.tethysoil.com

Oil price development

80,00

85,00

90,00

95,00

100,00

105,00

110,00

115,00

120,00

125,00

jul-12 aug-12 sep-12 okt-12 nov-12 dec-12 jan-13 feb-13mar-13 apr-13 maj-13 jun-13 jul-13 aug-13 sep-13

US

D p

er

Barr

el

Spot Brent and Omani Blend Futures

BRENT SPOT OMANI BLEND FUTURES TETHYS OIL SALE PRICE

www.tethysoil.com

EBITDA

Q4 2012 and Q1 2013 EBITDA include revenues from associates (Lithuania) and the Mitsui bonus.

0

50

100

150

200

250

Q3 Q4 2013 Q1 Q2 Q3

EBITDA, MSEK EBITDA-marg %

0,0

20,0

40,0

60,0

80,0

100,0

120,0

Q3 Q4 2013 Q1 Q2 Q3

Operating expenses Administrative expenses EBITDA

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Result overview Q3

10

Net sales of oil and gas

MSEK 142

Operating result

MSEK 60

Operating expenses

MSEK 42

Depreciation of oil and gas

properties

MSEK 36

Administrative expenses MSEK 6

Revenues Operating result

www.tethysoil.com

Financials BS Q3 2013

2013-09-30 2012-12-31

Cash (MSEK) 246 248

Shareholders equity (MSEK) 1047 860

Long term debts (MSEK) 420 417

Investments (MSEK) 208 875

Equity per share (SEK) 29,49 24,23

Cash per share (SEK) 6,93 6,99

www.tethysoil.com

Investments

• Majority of invesments were

made on Blocks 3 & 4

• Investments focus on appraisal

drilling, seismic and water

injection programmes

• About MSEK 15 spent on Block

15

12

0

50

100

150

200

250

300

Q3 Q4 2013 Q1 Q2 Q3

MSEK Investments

Investments

www.tethysoil.com

Blocks 3 & 4 JV:s investments

12 months 2012 9 months 2013

Drilling -Exploration/Appraisal

Drilling - Development

Geology and seismic

Facilities/Pipeline

Other capex

www.tethysoil.com

Share price

0

10

20

30

40

50

60

70

80

0

500 000

1 000 000

1 500 000

2 000 000

2 500 000

3 000 000

# Shares

Total volume Closing price

SEK

www.tethysoil.com

Oman – Block 3 & 4 update

• Evaluating the seismic data to

plan for next years drilling

programme

• Appraisal drilling on B4EW4

confirmed presence of oil and

in long term production test

• Appraisal well B4EW4-5 in

progress

• Exploration well in B4EW5 wet

and work to increase flow is

undertaken

www.tethysoil.com

Oman production

• Average daily production 4,682 bbl

• Production from: Farha South,

Saiwan East and test production

B4EW4

• The JV’s share of production currently

52 percent

• Selling price USD 102.1 (101.09)

0

1 000

2 000

3 000

4 000

5 000

6 000

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

Oman - Daily production Tethys' share (bo)

2012 2013

www.tethysoil.com

Wells in Oman

• Focus on the water injection programme

• Three rigs employed, actively sourcing a fourth

4

8

1

2

1

4

4 6

1

1 2

1

1 4

1

0

2

4

6

8

10

12

Q3-2012 Q4-2012 Q1-2013 Q2-2013 Q3-2013

Appraisal wells

Water source wells

Exploration wells

Water injection wells

Wells in previouslyundrilled fault block

Production wells4

22

37

26

0

5

10

15

20

25

30

35

40

2010 2011 2012 2013 9 m

www.tethysoil.com

Water Injection Fault Block B

0

200

400

600

800

1000

1200

1400

1600

1800

2000

8-Oct-10 5-Feb-11 5-Jun-11 3-Oct-11 31-Jan-12 30-May-12 27-Sep-12 25-Jan-13 25-May-13 22-Sep-13

Oil

Pro

du

ctio

n (b

/d)

Well Test

Model

Model WI

Bottom Hole

Pressure

Water injection started June 19, 2012

www.tethysoil.com

Appraisal and exploration wells 2013

B4EW4

Well Date Type of well Target reservoir Result

B4EW4 February Exploration Multiple Oil

B4EW4-2 June Appraisal Middle Buah No flows

B4EW4-3 June Appraisal Lower Al Bashir Oil

B4EW4-4 July Appraisal Lower Buah Oil

B4EW4-5 November Appraisal Lower Buah Oil

B4EW4-6 On-going Appraisal Lower Buah On-going

B4EW5

Well Date Type of well Target reservoir Result

B4EW5 Sept Exploration Buah Oil

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Oman - Block 15 update

• JAS-1 in long term production

test - minor flows

• Drilling of vertical sidetrack to the

JAS-2 completed – testing of

Natih C reservoir in progress

www.tethysoil.com

21

Lithuania - Gargzdai update

• 7 producing fields

• Production declining according to

plan

• Evaluation of enhanced recovery

techniques

• 2-3 undrilled conventional prospects

• Exposure to thick shale sections

prospective for shale oil/shale gas

• Cores and other data collected in shale section for analysis

www.tethysoil.com

Lithuanian production

• Average daily production 126 bbl

in Q3

• Declining production - according

to plan

• Evaluation of various production

enhancing techniques

0

20

40

60

80

100

120

140

160

180

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

Lithuania - Daily production Tethys' share (bo)

2012 2013

www.tethysoil.com

Lithuania – Rietavas update

Conventional exploration and shale

exposure. Work programme fully funded

by Chevron*

• Soviet era Silale discovery

successfully appraised

• Silale-1 in intermittent production

• Appraisal well Silale-5 (previously

Silale-2) encounters oil in the

Cambrian – testing pending

• Exploration well Rietavas-1 in

progress

*Chevron has an option to acquire part of Tethys’ interest

www.tethysoil.com

Lithuania – Raseniai update

Exploration for conventional oil in Silurian

Reefs and other carbonites

• Twin of Soviet era stratigraphic well,

Lapgiriai-1 drilled during spring -

presence of oil confirmed.

• 3D seismic study, partly funded by EU

in progress. Data collection almost

completed. Processing will start

before year end.

www.tethysoil.com

Seismic Activities

850km2 2D completed 100% in 2013

Processing ongoing

600km2 3D completed

Processing ongoing

B4EW4: 470km2 3D completed

Processing completed

Farha old: Reprocessing completed

Farha new: 510km2 3D completed

Processing completed

www.tethysoil.com

Farha

Farha Old 3D • Producing Barik FB: 16 • New FB drilled 2013: 1 (FS-68 in A

Farha New 3D • Leads

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B4EW4 and Buah

B4EW4 Several oil bearing layers- one in production • Producing Buah: 1 field • Lower Buah wells: 3, • Middle Buah wells: 1, • LAB wells: 1, LB-3 S/I

NOTE: these two in

Farha new 3D

www.tethysoil.com

B4EW4 Structure Seismic Interpretation

www.tethysoil.com

Lower Buah fields and prospects

North

B4EW4 area

B4EW5

B4EW6 prospect

www.tethysoil.com

Outlook

• B4EW4 appraisal continues - well no 6 targeting Lower Buah in progress

• In house estimate of B4EW4 structure Lower Buah 2P reserves 2-4 million barrrels of oil net Tethys

• Several Lower Buah leads and prospects to be drilled

• Farha leads and prospects expected to increase as seismic interpretations continues

• Following the 2013 seismic programme, next years work programme likely to be more focused on exploration drilling

• Appraisal / exploration in Lithuania continues - costs covered

30

www.tethysoil.com

Outlook to increase Production and Reserves

• Increased Production from Farha South Water Injection Programme

• Significant Appraisal Drilling on B4EW4 structure

• Continue to explore the potential of the Farha trend -seismic interpretation ongoing

• Lower Buah opening up a completely new play to increase reserves and production -seismic interpretation ongoing

• 2D seismic study from the Eastern part of Block 4 indicates chance to a “mirror” Farha trend together with more Buah prospects

• Lithuania drilling activity and pending new seismic studies

31

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