Tethys Oil Presentation

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www.tethysoil.com1


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Tethys assets

2

Sweden

- Gotland strre

- Gotland mindre

France

- Attila

- Permis du Bassin DAls

Oman

- Block 3 & 4

- Block 15

Lithuania

- Gargzdai

- Rietavas- Raiseiniai


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Tethys Oil - An expanding oil & gas company

FDP Block 3 & 4approved

Company isfounded

IPO on First

North on 6 April

2004

Interest in Block 3

& 4 in Oman

acquired

Strategic

investment in

Lithuania

agreement with

Odin Energi

2001 2004 2007 2012

Invests in areas with known oil and gas accumulations and extract upside

potential through the use of modern technologies

Strategic assets with long term potential

Recently awarded 30 year production license in Oman

Chevron entered as partner in Lithuanian license in Q4

Positive cash flow from production in Oman and Lithuania

Significant production growth through ramp-up in Oman through 2012

Market cap ~ SEK 2 billion

Production

record of 14981 bopd in

Oman


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Asset overview

ProductionExploration

Country Licence

name

Total

area

Tethys

interest

Partners Production

Oman Block 3 & 4 33 125km2

30% CCED, Mitsui > 3 500 bopd

Oman Block 15 1 389 km2 40% Odin Energi

Lithuania Rietavas 1 594 km2 14% Odin Energi,

private investors,

Chevron

Lithuania Raiseiniai 1 535 km2 20% Odin Energi,private investors

Lithuania Gargzdai 884 km2 25% Odin Energi,

Geonafta

> 140 bopd

France Attila 1 986 km2 40% Galli Coz

France Als 215 km2 37,5% Mouvoil

Sweden Gotland

strre/mindre

581 km2 100%


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Three blocks: 3 & 4 and 15

Tethys is one of the largest license

holders in Oman, measured byacreage

Two main projects:

Farha South Conventional oil(Block 3)

Saiwan East Conventional oil(Block 4)

Other projects:

Saiwan East Heavy oil (Block 4)

Jebel Aswad Gas/Condensate

(Block 15)

3

4

15

OmanTethys core area


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Oman Block 3 & 4 The primary assets

Tethys 30%, CCED 50% (operator)and Mitsui 20%

Significant light oil resource base Net 2C resources of 13.8 mmbo

Large upside potential inexploration and increasedrecovery

Gross production of 14,734 bopd(Tethys share 3 677 bopd) in Dec2012

Producing areasLeads outside ofproducing areas

Huwayr Deep`

Abu Zeinah

Deep

North Saiwan

Saih Hajmah

Farha South

East Saiwan

Al Saad

Qulam North

Maeen -

Qarn Sahmah

Flank

Huwayr Deep`

Abu Zeinah

Deep

North Saiwan

Saih Hajmah

Farha South

Saiwan East

Al Saad

Qulam North

Maeen -

Qarn SahmahFlank

Resources

Resources

Jan 2012

(mmbo)

Resources

Jun 2012

(mmbo)

Production

Jan-Jun

2012

(mmbo)

Increase

(%)

1C 2.6 3.4 0.6 31

2C 9.8 13.8 0.6 41

*Calculated for first six months of 2012Mmbo = million barrels


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Farha Trend Growth

7


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Oman production

Produced volume, bbl* Daily production, bopd

8

659 720

948 2701 006 937

1 196 560

1 334 412

197 916284 481 302 081

358 968400 325

0

100 000

200 000

300 000

400 000500 000

600 000

700 000

800 000

900 000

1 000 000

1 100 000

1 200 000

1 300 000

1 400 0001 500 000

Q4-2011 Q1-2012 Q2-2012 Q3-2012 Q4-2012

Gross production Tethys, net production

Increasing oil production from Block 3 and 4

Steady total production in excess of 10.000 bopd

*bbl = barel (1barel =159 litres) **bopd = barels of oil per day

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

Total production, BOPD Tethys Net production, BOPD


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Tethys Oils daily and monthly Production

9

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

160 000

Tethys Daily v Monthly Production

Production per Month (From Tethys Official Production Press release) Average Daily Tethys Production

Barrels

of oil

Barrels

of oil


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Resources

10

Contingent Resources (Audited)

Blocks 3 and 4, OmanMmbo

1C 2C 3C

As per 31 Dec, 2011 2,6 9.8 12.4

Production 1 Jan 30 Jun 2012 -0.6 -0.6 -0.6

Revisions 1.4 4.6 5.5

As per 30 Jun, 2012 3.4 13.8 17.4

Increase 31% 41% 40%

41% increase in 2C resources to 13.8 mmbo compared to December 31, 2011


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Oman - Drilling program uppdateras

Total wells drilled Type of wells

11

4

22

37

0

5

10

15

20

25

30

35

40

2010 2011 2012

45

4

8

5 3

2

2

2

1

1

0

2

4

6

8

10

12

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

Exploration wells

Water injection wells

Wells in previously

undrilled fault block

Production wells


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Lithuania High value production with unconventional upside

3 licences, Gargzdai, Rietavasand Raiseiniai

Gargzdai in production

Large potential upside in

unconventional resources

Shale oil and enhanced oil

recovery

Licenses are held through an

operating subsidiary, operated

by Odin

Investment through associated

companies

Gargzdai

25% interest

~140 bopd production (net)

Rietavas

14% interest

Raiseiniai

20% interest

*Assuming USD 100/bo oil price


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Lithuania Gargzdai license

Tethys Oil 25% (Odin Energi, Geonafta)

7 producing fields One exploration well indicates largepotential in shale sections

Vast amount of shale core and otherdata collected in shale section foranalysis

2 undrilled prospects

Reserves (Audited) Mmbo 1P 2P 3P

The Gargzdai license 0.7 1.7 3.0

Reserves as per 31 December 2011

*Mmboe = Miljon barrels of oil equivalent **bopd = barels of oil per day


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Lithuanian oil production

Produced volume, bbl*

15 mmbo produced to date

Current gross production of

~570bopd

42API oil

Oil sold at USD ~1 discount to

Brent

14

*bbl = barel (1barel =19 litres)

0

20

40

60

80

100

120

140

160

180

0

10000

20000

30000

40000

50000

60000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Cumulated production (Tethys share)

Bbl per day (Tethys share)


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Lithuania - Rietavas & Raiseniai licenses

Rietavas 1 594 km2

Tethys interest 14%

Partners: Odin Energi, Chevron,

private investors

Work programme fully funded by

Chevron

Exploration primarily shale gas/oil, but

also conventional oil potential

Raiseniai 1 535 km2

Tethys interest: 25%

Partners: Odin Energi, private

investors

Exploration primarily shale gas/oil, but

also conventional oil potential

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Lithuania - Geological setting and petroleum system

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France

Interests in two licences: Attila and Als

Known accumulations of gas and oil

Data and logs from 17 wells Currently no work on-going

Sweden (Gotland)

Proven oil region

40+ prospects identified

Drilling depth required is less than 500 metres

Favourable fiscal terms

Other exploration assets

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Q4 Highlights

Record gross production from Oman of 399 625 barrels corresponding to 4 344

barrels per day in Q4

Field development plan Block 4 & 4 approved in December. License extended until

2040.

Farmout of Lithuanian license Rietavas to Chevron. Fully funded workprogram.

18

MUSD 2 remaining of Mitsuis cost

carry in 2013

8 wells drilled on Blocks 3 and 4 in

Oman

80% success rate on drillings in

previously undrilled fault block

discovered 8 new oil bearing blocks in2012


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Outlook

Field Development Plan approved allows long

term development and investment plans (30

years)

Capex for Block 3 & 4 estimated MSEK 300 in

2013, fully funded by cash flow

Continued drilling with 2 rigs: focus on increasing

reserves with exploration also on Block 4

Using knowledge and experiences gained from

existing projects in continued exploration

Q1 Oman production estimated to 4000 - 5000

bopd (before government take and taxes)

Comprehensive work program in Lithuania to

begin shortly - fully funded by Chevron

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FINANCIALS

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Production (barrels)

Revenue (MSEK)

Average achieved oil price

(USD/barrel)

EBITDA(MSEK)

Result for the period (MSEK)

Operating cash flow (MSEK)

Fourth Quarter 2012

400 324

170

112

193

145

204

Financial highlights Q4 2012

21

Year 2012

1 345 854

584

110

509

314

518


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Result overview

22

Net sales of oil and gas

MSEK 584

Net profit from associate

MSEK 49

Operating result

MSEK 336

Write off oil and gas properties

MSEK 118

Operating expenses

MSEK 96

Depreciation of oil and gas properties

MSEK 55

Administrative expenses MSEK 29

Revenues Operating result


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Oman crude oil sales

Sold volume, bbl Revenues from oil sales, tsek

23

69 574

195 422184 994

169 303

225 518

0

50 000

100 000

150 000

200 000

250 000

Q4-2011 Q1-2012 Q2-2012 Q3-2012 Q4-2012

49 839

144 710153 768

115 783

169 773

0

50 000

100 000

150 000

200 000

Q4-2011 Q1-2012 Q2-2012 Q3-2012 Q4-2012

h l d i bl d


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Tethys sale vs Brent and Omani blend

24

80

90

100

110

120

130

140

US

Dp

erBarrel

Spot Brent v Omani Blend Futures

BRENT SPOT Omani Blend futures TETHYS OIL SALE PRICE


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0

100

200

300

400

500

600

700

0

20

40

60

80

100

120

140

160

180

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012

Net sales (lhs) Net sales LTM (rhs)

Net sales

0

100

200

300

400

500

600

0

50

100

150

200

250

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012

EBITDA (lhs) EBITDA LTM (rhs)

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Growing sales and profitability

SEKm

EBITDA

SEKm SEKm SEKm

Strong underlying production

Lifting in January 2012 originally scheduled fo december 2011 added sales

of MSEK 38 in Q1 2012

From underlift in Q3 to overlift in Q4

Higher oil price in Q4

Fi i l hi hli ht Q3 2012


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Cash, MSEK

Long term debt, MSEK

Shareholders Equity, MSEK

Investments, MSEK

Financial highlights Q3 2012

26

Of investments SEK 381 million regard payments to Mitsui

Market Cap SEK ~ 2 billion in January 2013

Dec 30, 2012

248

417

860

875


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Very strong underlying cash generation

Cash flow from operations have been growing rapidly in conjunction withcommenced production in Oman

By the end of 2011, Mitsui had carried cost up to the agreed USD 60m

Cost repayment commenced in 2012

MUSD 2 m remains to be paid as at 30 Dec 2012 (contingent liability)

Operating cash flow before working capital changes

0

50

100

150

200

250

300

350400

450

500

0

20

40

60

80

100

120

140

160

Q4 2011 Q1 2012 Q2 2012 Q3 2011 Q4 2012

Cash flow from operations before working capital changes (lhs)

Cash flow from operations before working capital changes LTM (rhs)

Investments

0

100

200

300

400

500

600

700800

900

1 000

0

50

100

150

200

250

300

Q4 2011 Q1 2012 Q2 2012 Q3 2011 Q4 2012

Investments in oil and gas properties (lhs) Cost repayment (lhs)

Investments LTM (rhs)

SEKm SEKm SEKm SEKm

Revenue split maximum cost recovery


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Revenue split - maximum cost recovery

28

1 bbl

100$

40 $

48$40+12

=52$

Maximum Cost

recovery 40%

State of Oman

Joint Venture

Block 3 & 4

60$

Revenue split

20% 80%

10:40$26$15:60$

Tethys Oil

30%

CCED

50%

Mitsui

20%

Fi i l


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MSEK (unless stated) 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 2012Net sales of oil and gas 50 145 154 116 170 584

Operating result 44 109 -4 62 152 336

EBITDA 45 120 78 193 509

Result for the period 44 108 15 46 145 314

Earnings per share, SEK 1,36 3,31 0,46 1,35 4,07 9,11

Cash and cash

equivalents 93 68 44 323 248 248

Investments 36 210 232 151 280 875

Financials

Ownership and share price development


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Ownership and share price development

Shareholders Share price development

30

0

10

20

30

40

50

60

70

80

Management and Board of Directors currentlyhold 17% of the share capital

Market capitalisation as of Jan 2013 of ~ SEK2 billion


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Tethys Oil Presentation

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