2010-12-06

Drilling Commences on Kalypso Exploration Well

BOZOI, KAZAKHSTAN, Dec 06, 2010 (MARKETWIRE via COMTEX) --

Tethys Petroleum Limited ("Tethys" or the "Company) (TSX: TPL) today announced that it had commenced drilling of the KBD01 (Kalypso) exploration well in Kazakhstan.

Tethys mobilised a ZJ30 rig to the site and has now commenced drilling on an attractive exploration prospect (named Kalypso) located approximately 50 km to the north-west of the Doris oil discovery. This well has a planned total depth of 4,000 metres and is targeting potential reservoirs at several stratigraphic levels from the Cretaceous to the Permo-Carboniferous. The ZJ30 rig will drill to a depth of 300 metres where the 508mm casing is planned to be set after which the well will be completed using Tethys' larger ZJ70 rig "Telesto" which is currently drilling ahead in the Permo-Carboniferous sequence on the Dione exploration well AKD03. The KBD01 well is the first deep exploration well to be drilled by the Company on the Kul-Bas block which also contains several other attractive prospects.

The Kul-Bas contract area (which currently covers an area of 7,632 km(2)) surrounds the Akkulka contract area where the Company has recently made the AKD01 "Doris" oil discovery and where work is currently underway to appraise this oil discovery and explore the surrounding area.

The original terms of the Kul-Bas Exploration and Production Contract involved a six year exploration period with relinquishments and a 19 year production period which could be extended. Tethys recently announced that it had reached agreement with the Kazakh Ministry of Oil and Gas to extend the exploration term by a further two years (until December 2013) without further relinquishments with the amended Contract being expected shortly. The extension to the exploration period gives Tethys additional time to explore this attractive area.

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.

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, 2009 for a description of risks and uncertainties relevant to our business, including our exploration activities.

Contacts: Tethys Petroleum Limited Sabin Rossi Vice President Investor Relations +1 416 572 2065 +1 416 572 2201 (FAX) info@tethyspetroleum.com www.tethyspetroleum.com Tethys Petroleum Limited TD Canada Trust Tower 161 Bay Street, 27th Floor Toronto N5J 2S1, Canada Mobile site: http://m.tethyspetroleum.com In Asia-Pacific Quam IR Anita Wan, Associate Director + (852) 2217-2999 + (852) 2217-2999 (FAX) anita.wan@quamgroup.com Quam IR 3/F Fung House 19-20 Connaught Road Central Hong Kong SAR, PRC
SOURCE: Tethys Petroleum Limited

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