2012-05-15

First Quarter 2012 Financial Results

Revenues Increased by 45%

GRAND CAYMAN, CAYMAN ISLANDS, May 15, 2012 (MARKETWIRE via COMTEX) --Tethys Petroleum Limited ("Tethys" or "the Company") (TSX: TPL)(LSE: TPL) today announced its first quarter 2012 financial results. The results are underlined by a 45% increase in revenues over the first quarter of last year.

The Company reports financial results in accordance with International Financial Reporting Standards ("IFRS").

RECENT HIGHLIGHTS

-- Q1 2012 Total Revenue was USD$6.49 million (Q1 2011: USD$4.48 million) -- Q1 2012 average oil and gas production was 5,117 barrels of oil equivalent per day (Q1 2011: 4,531 barrels of oil equivalent per day) -- Q1 2012 average oil production from the Doris field in Kazakhstan was 1,038 barrels of oil per day (Q1 2011; 337 barrels of oil per day) -- Q1 2012 average gas production was 566 Mcm/d (Q1 2011: 511 Mcm/d) The full Q1 Results together with a Management Discussion & Analysis have been filed with the Canadian securities regulatory authorities. Copies of the filed documents may be obtained via SEDAR at www.sedar.com or on Tethys' website at www.tethyspetroleum.com. The summary financial statements are attached to this press release.

The above highlights along with other operational and financial details will be further discussed in a scheduled conference call. Details of the conference call can be found below:

Conference Call:

A conference call will be held at 8:00 AM Eastern Standard Time 1:00 PM British Summer Time on Wednesday, May 16, 2012. The North American conference call number is 800-261-3417 and the outside North America conference call number is +1 617-614-3673. The conference call code to use is 26577200 . Please call in about 10 minutes before the starting time in order to be patched into the call.

Webcast:

The call is being webcast and can be accessed at:

http://phoenix.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=213714&eventID=4773558

Notes to Editors

Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Kazakhstan, Tajikistan 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.

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. See our Annual Information Form for the year ended December 31, 2011 for a description of risks and uncertainties relevant to our business, including our exploration activities. A barrel of oil equivalent ("boe") conversion ratio of 6,000 cubic feet (169.9 cubic metres) of natural gas = 1 barrel of oil has been used and is based on the standard energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Tethys Petroleum Limited Condensed Consolidated Statement of Financial Position (Unaudited) (in US Dollars) As at March December 31, 31, 2012 2011 $'000 $'000 Non-current assets Property, plant and equipment 125,994 128,918 Intangible assets 100,914 99,959 Restricted cash 1,408 1,407 Prepayments and other receivables 9,793 10,217 Investment in jointly controlled entity 1,116 1,113 --------- ----------- 239,225 241,614 --------- ----------- Current assets Inventories 2,073 2,025 Trade and other receivables 5,844 5,478 Loan receivable from jointly controlled entity 2,000 2,013 Cash and cash equivalents 4,180 10,746 Restricted cash 623 885 Derivative financial instruments - interest rate swap - 630 --------- ----------- 14,720 21,777 --------- ----------- Total assets 253,945 263,391 --------- ----------- --------- ----------- Equity attributable to shareholders Share capital 28,671 28,669 Share premium 306,725 306,725 Other reserves 39,172 38,530 Accumulated deficit (151,710) (144,962) Non-controlling interest 8,818 8,918 --------- ----------- Total equity 231,676 237,880 --------- ----------- Non-current liabilities Financial liabilities - borrowings 2,819 1,632 Deferred taxation 2,107 2,111 Trade and other payables 500 547 Asset retirement obligations 230 386 --------- ----------- 5,656 4,676 --------- ----------- Current liabilities Financial liabilities - borrowings 6,025 8,396 Derivative financial instruments - warrants 1,348 264 Derivative financial instruments - foreign currency hedge 8 157 Deferred revenue 1,330 1,839 Trade and other payables 7,758 10,179 Current tax 144 - --------- ----------- 16,613 20,835 --------- ----------- --------- ----------- Total liabilities 22,269 25,511 --------- ----------- Total shareholders' equity and liabilities 253,945 263,391 --------- ----------- --------- ----------- Tethys Petroleum Limited Condensed Consolidated Statement of Comprehensive Income (Unaudited) For the three months ended March 31, 2012 (in US Dollars) 2012 2011 $'000 $'000 re-presented Sales and other revenues 6,487 4,480 ------------------------- Total revenue and other income 6,487 4,480 Production expenses (2,910) (1,752) Depreciation, depletion and amortisation (3,036) (2,612) Listing expenses - (6) Business development expenses (184) (20) Administrative expenses (4,986) (5,271) Share based payments (603) (1,193) Foreign exchange (loss)/gain- net (64) 200 Fair value loss on derivative financial instrument (896) (8) Loss from jointly controlled entity (62) (209) Net finance costs (454) (7) ------------------------- Loss before taxation (6,708) (6,398) Taxation (140) 103 ------------------------- Loss for the period (6,848) (6,295) ------------------------- ------------------------- Loss attributable to: Shareholders (6,748) (6,295) Non-controlling interest (100) - ------------------------- Loss for the period (6,848) (6,295) ------------------------- ------------------------- Basic and diluted (0.02) (0.02) Tethys Petroleum Limited Condensed Consolidated Statement of Cash Flows (Unaudited) For the three months ended March 31, 2012 (in US dollars) 2012 2011 $'000 $'000 Cash flow from operating activities Loss before taxation for the period (6,708) (6,398) Adjustments for Share based payments 603 1,193 Net finance cost 454 7 Depreciation, depletion and amortization 3,036 2,612 Fair value loss on derivative financial instrument 896 8 Net unrealised foreign exchange loss 35 43 Loss from jointly controlled entity 62 209 Deferred revenue (509) (2,422) Net change in non-cash working capital (1,562) (322) ------------------- Net cash (used) from operating activities (3,693) (5,070) ------------------- Cash flow from investing activities Interest received 88 32 Expenditure on exploration and evaluation assets (995) (1,866) Expenditures on property, plant and equipment (214) (8,986) Investment in restricted cash 261 (2) Investment in jointly controlled entity (3) - Payments made on behalf of jointly controlled entity - (2,878) Movement in advances to construction contractors 367 (1,827) Value added tax receivable 57 (905) Net change in non-cash working capital (1,279) (52) ------------------- Net cash (used) from investing activities (1,718) (16,484) ------------------- Cash flow from financing activities Proceeds from issuance of short-term borrowings, net of issue costs 3,520 - Proceeds from issuance of long-term borrowings, net of issue costs 2,306 - Repayment of long-term borrowings (156) (86) Repayment of short-term borrowings (6,459) - Interest paid on long-term borrowings and other non- current payables (204) (100) Other non-current liabilities (74) (76) ------------------- Net cash (used) from financing activities (1,067) (262) ------------------- Effects of exchange rate changes on cash and cash equivalents (88) 81 Net decrease in cash and cash equivalents (6,566) (21,735) Cash and cash equivalents at beginning of the period 10,746 79,135 ------------------- Cash and cash equivalents at end of the period 4,180 57,400 -------------------

Tethys Petroleum Limited
Sabin Rossi, - All Investor Queries
Vice President Investor Relations
Office: +1 416-941-1257
+1 416-947-0167 (FAX)

Europe
Tethys Petroleum Limited
Veronica Seymour, - All Media Queries
Vice President Corporate Communications
Office: +44 1481 725911
+44 1481 725922 (FAX)

Corporate Brokers:
FirstEnergy Capital LLP.
Hugh Sanderson / David Van Erp +44 207 448 0200
Seymour Pierce Richard Redmayne / Jonathan Wright / Stewart Dickson Office: +44 207 107 8000

Asia Pacific:
Quam IR Anita Wan
Office phone/fax: +852 2217 2999

FTI Consulting - London
Ben Brewerton / Edward Westropp
Office: +44 207 831 3113

Tethys Petroleum Limited
info@tethyspetroleum.com
www.tethyspetroleum.com
Mobile site: http://m.tethyspetroleum.com

SOURCE: Tethys Petroleum Limited