2008-11-03

AKK16 Exploration Well Tests Gas

BOZOI, KAZAKHSTAN--(Marketwire - Nov. 3, 2008) - Tethys Petroleum Limited ("Tethys" or the "Company")(TSX:TPL - News) today announced that its AKK16 exploration well has tested gas at a rate in excess of 10.2 million cubic feet per day (MMcf/d) (290.2 thousand cubic metres per day (Mcm/d)). This discovery has now been named the "South-East Akkulka" gas accumulation. Tethys also announced that it has acquired additional drilling and operations equipment.

Exploration well AKK16 was drilled in the south-eastern part of the Company's Akkulka exploration block in Kazakhstan, some 36 km (22.5 miles) from the Kyzyloi gas field, and 12 km (7.5 miles) south-east of the AKK15 well, targeting a prospect identified on the recently acquired seismic data enhanced by AVO analysis. Dry gas has now been tested from an 8 metre (26 feet) sand interval at a rate of some 10.2 MMcf/d (290.2 Mcm/d) on a 36 mm (91/64 inch) choke with a flowing tubing head pressure of 12.5 atmospheres (183.5 psig). Engineering analysis shows that the flow has been significantly restricted by the 2 7/8" (73 mm) tubing, but final data analysis is required to quantify this. Further more extensive testing of this new discovery is now underway, as is evaluation of the potential of the South-East Akkulka accumulation.

Seismic and geological analysis indicates that the Paleogene basin in which these sands were deposited deepens to the south and east and the reservoir in the AKK16 well, which initial data indicates to have high porosity and permeability, may represent a more distal equivalent of the Paleogene sand sequence which is productive in the Kyzyloi field. More work is required to confirm this and future potential drilling locations in the area.

Graham Wall, Vice President Technical of Tethys commented; "The AKK16 well shows once again the merit of detailed seismic analysis and processing on our success in finding more gas in this area. The sand quality and productivity of the reservoir in AKK16 seems excellent, and the South-East Akkulka accumulation will now be incorporated into our plans for Phase 3 of the gas development which we are currently optimising given the high flow rates obtained on this and the previous two Akkulka exploration wells."

In addition the Company announced that it has reached agreement to acquire a comprehensive package of drilling and operations equipment including an 80 tonne drilling rig, a 37 tonne workover rig, welding equipment for pipeline construction, and other equipment including cranes, trucks, pump units etc. This equipment will be used on the Company's ongoing development and exploration activities in Kazakhstan and also in Tajikistan and will result in significant cost reductions and additional flexibility as compared to contracting such equipment.

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, 2007 for a description of risks and uncertainties relevant to our business, including our exploration activities.

Tethys Petroleum Limited is registered in Georgetown, Grand Cayman, Cayman Islands and is listed on the Toronto Stock Exchange (TSX) with the symbol "TPL" and on the RFCA in Almaty, Kazakhstan.

Contact:

Sabin Rossi Tethys Petroleum Limited Vice President Investor Relations (416) 572-2065 (416) 572-2201 (FAX) Email: info@tethyspetroleum.com Website: www.tethyspetroleum.com Ardak Akanov, Managing Director In Kazakhstan: PG Communications Office phone/fax: +7 (727) 272 8867, +7 (727) 272 8237, +7 (727) 272 7745 Cell: +7 701 711 5604 Email: development@pressclub.kz

Source: Tethys Petroleum Limited