Tethys Petroleum Limited

Corporate Update - Seite 2

Strategy and Vision

Tethys Petroleum's vision is to become the leading independent E&P Company in Central Asia, by exercising capital discipline, by generating cash flow from existing discoveries and by maturing large exploration prospects within our highly-attractive frontier acreage.

Tethys' strategy is to:

• Be recognized as an ethically-responsible, transparent company, delivering safe, reliable, operations through a culture of safety & performance related delivery.
• Focus on cost structures and capital efficiency - actively manage our portfolio by farming down / reducing our capital commitment whilst retaining materiality
• Increase production, revenue and cash flow from existing discovered reserves and monetize low risk gas and oil prospects
• Explore for 'elephant' prospects with 'company making' potential within existing acreage
• Ultimately look to supply the growing energy demand of China
• Combine international technical and management expertise with a strong local team

MOU signed with PetroChina

Tethys Kazakhstan SA, a subsidiary of Tethys Petroleum Ltd, has signed an MOU with PetroChina International Kazakhstan Ltd to explore the feasibility of a long-term and mutually beneficial cooperation in natural gas and crude oil deliveries. The main collaboration area to be explored by the parties is the proposed delivery of gas and crude oil for export to The People's Republic of China, and also for the internal market of the Republic of Kazakhstan. Tethys has the right to export gas to China already and can sell oil on the domestic market currently, obtaining the right to export oil upon conversion of the Akkulka Exploration Contract to a Production Contract.

Tajikistan Costs Reductions

The Company and its Joint Venture partners CNPC and Total in the Tajik Bokhtar PSC, have recently agreed to reduce this year's exploration budget by nearly a third through overhead cost reductions, a well-balanced selection of seismic acquisition parameters, and optimized timing of pre drilling costs in the current drilling contractor market. The previously agreed 2015 budget included a commitment for Kulob Petroleum Limited (the Contractor party of Tethys) to fund a total of up to US$24 million in 2015. This number has now been reduced to c. US$15 million with two-thirds of this total forecast to be due in H2 2015.