2009-03-31

Tethys Petroleum 2008 Annual Results

GEORGETOWN, CAYMAN ISLANDS, Mar 31, 2009 (MARKET WIRE via COMTEX) -- Tethys Petroleum Limited ("Tethys" or the "Company") (TSX: TPL) today announced its Annual Results for the period ended December 31, 2008. The full Annual Results together with a Management Discussion & Analysis have been filed with the Canadian securities regulatory authorities. Tethys also announced that it has filed its Annual Information Form ("AIF") which contains reserves data and other information about the Company for the period ended December 31, 2008, and the reports as mandated by National Instrument 51-101. 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.

Highlights

- The Company generated revenues from gas sales of US$5.36 million in the year ended December 31, 2008 compared to US$0.194 million in the year ended December 31, 2007.

- The Company recorded a net loss of US$22.627 million in the year ended December 31, 2008 compared to US$41.779 million in the year ended December 31, 2007.

- The Company had a cash and working capital surplus of US$21.489 million in the year ended December 31, 2008 compared to US$25.773 million in the year ended December 31, 2007.

- Capital expenditure in the year ended December 31, 2008 was US$42.343 compared to US$ 23.001 million in the year ended December 31, 2007.

- Operating costs in the year ended December 31, 2008 were US$1.334 million compared to US$0.019 million in the year ended December 31, 2007 (the 2007 figure covered only 12 days of production).

- General and Administrative costs in the year ended December 31, 2008 were US$13.421 million compared to US$9.461 million in the year ended December 31, 2007 reflecting the greater level of activity in the Company during that period.

Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Kazakhstan and Tajikistan. 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, 2008 for a description of risks and uncertainties relevant to our business, including our exploration activities.

TETHYS PETROLEUM LIMITED Consolidated Statement of Operations and Comprehensive Loss Year ended December 31, 2008 2007 ------------------------------ (Expressed in 000's United States dollars Note except share data) Revenues Net of Royalties Oil and gas sales 5,360 194 ------------------------------ 5,360 194 ------------------------------ Expenses Operating 1,334 19 Selling, general and administrative 13,421 9,461 Stock based compensation 14 3,945 17,624 Depreciation, depletion and amortization (2007 includes ceiling test write down of $12.8 million) 7 6,449 13,057 ------------------------------ 25,149 40,161 ------------------------------ Operating Loss (19,789) (39,967) ------------------------------ Other Income/(Expense): Interest, net 754 (1,437) Foreign exchange (losses) (3,060) (96) Finance charges (373) (238) Other (159) (41) ------------------------------ Total Other (Expense) (2,838) (1,812) ------------------------------ Loss Before Income Taxes (22,627) (41,779) Income taxes - - ------------------------------ Net Loss and Comprehensive Loss for the year (22,627) (41,779) ------------------------------ ------------------------------ Weighted average number of common shares outstanding 14 55,987,525 33,274,413 ------------------------------ Basic and diluted loss per share (0.40) (1.26) ------------------------------ See accompanying notes to these financial statements TETHYS PETROLEUM LIMITED Consolidated Balance Sheet As at --------------------------- December 31, December 31, Note 2008 2007 ------------- ------------ (Expressed in 000's United States dollars) ASSETS Current Assets Cash and cash equivalents 22,200 26,692 Prepayments 3 900 351 Accounts Receivable 1,124 219 Inventory 213 - Other current assets 640 790 ------------- ------------ Total current assets 25,077 28,052 Non Current Assets Prepayments 3 1,514 3,062 Restricted Cash 5 587 318 Value added tax recoverable 6 4,843 2,752 Capital assets 7 73,793 37,472 ------------- ------------ Total non-current assets 80,737 43,604 ------------- ------------ Total Assets 105,814 71,656 ------------- ------------ ------------- ------------ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable 1,219 1,388 Current portion of long term debt 8 853 - Accrued & other liabilities 1,516 891 ------------- ------------ Total current liabilities 3,588 2,279 Non Current Liabilities Long term debt 8 5,096 - Other non-current liabilities 9 523 776 Asset retirement obligation 10 433 661 ------------- ------------ Total non current liabilities 6,052 1,437 ------------- ------------ Total Liabilities 9,640 3,716 ------------- ------------ Stockholders' equity 13 Share capital 145,237 99,483 Contributed Surplus 14 7,472 3,527 Warrants 15 17,717 16,555 Accumulated deficit (74,252) (51,625) ------------- ------------ Total stockholders' equity 96,174 67,940 ------------- ------------ Total Liabilities and Stockholders' Equity 105,814 71,656 ------------- ------------ ------------- ------------ Commitments and contingencies 11 See accompanying notes to these financial statements Approved by the board of directors "D Robson" "B Murphy" on March 31, 2008 Director Director

Contacts:
Tethys Petroleum Limited
Sabin Rossi
Vice President Investor Relations
Office: 416 572 2065
416 572 2201 (FAX)
info@tethyspetroleum.com
www.tethyspetroleum.com

In Kazakhstan:
PG Communications
Ardak Akanov, Managing Director
Office phone/fax: +7 701 272 8867
development@pressclub.kz

SOURCE: Tethys Petroleum Limited

mailto:info@tethyspetroleum.com
http://www.tethyspetroleum.com
mailto:development@pressclub.kz