GRAND CAYMAN, CAYMAN ISLANDS–(Marketwired – May 15, 2015) – Tethys Petroleum Limited (TSX:TPL)(LSE:TPL) today announced its Results for the quarter ended March 31, 2015.

Q1 Financial Highlights (all figures reported in USD millions)

Oil and gas revenue of USD5.95m (2014: USD6.78m)

Gas revenue increased 97% to USD4.71m (2014: USD2.39m)

Production expenses down 31% to USD2.61m (2014: USD3.79m)

G&A expenses down 45% to USD2.82m (2014: USD5.13m)

Loss for the period from continuing operations – USD2.03m (2014: USD4.41m), (including restructuring and transaction expenses of USD0.44m)

Basic & diluted loss per share from continuing operations – USD0.01 (2014: USD0.01)

Capital Expenditure of USD1.95m (2014: USD7.27m)

Cash and cash equivalents of USD6.99m (2014: USD15.33m)

Q1 Operational Highlights

Gas production up 57% to 3,173 barrels of oil equivalent (“BOE”)/day (2014: 2,016 BOE/day)

Highest quarterly gas production in 3 years

Total Production up 9% to 4,368 BOE/day (2014: 4,025 BOE/day)

Q1 Corporate Highlights

4-year extension of the Akkulka Exploration Contract (subject to certain routine amendments to the Contract)

15-year extension of the Kyzyloi Gas Production Contract

Increase in Reserves in all boe categories as at December 31, 2014

New Gustavson Resource* Economics issued

Klymene (Kazakhstan – prospect) EMV $347 million

Karatau (Tajikistan – lead) EMV $368 million

USD9.5 million loan financings

Seismic survey in Tajikistan progressing positively

Reduction in funding obligations in Georgia and renegotiated a more efficient new work programme with the State

* unrisked mean gross recoverable prospective resources

Post Q1 Highlights

A strategic review of the business which encompasses options including asset sales, farm-outs, financing, investments at the corporate level, or the sale of the Company is being conducted

Discussions have been ongoing with a number of interested parties on all of these potential avenues

USD7.5m convertible loan facility secured on May 15, 2015 with AGR Energy Limited No. 1(“AGR Energy”) as we advance the strategic review

As an option being considered as part of the ongoing strategic review, Tethys has entered into a limited period of exclusivity with AGR Energy to negotiate a potential larger financing. The exclusivity period runs through to June 12th, 2015 and is subject to certain customary exceptions

Current average Q2 production to date is 4,807 BOE/day comprising 1,719 bopd of oil and 525 Mcm/d (18.5 MMcf/d) of sales gas.

Current average production to date in May is 5,379 BOE/day

John Bell, Executive Chairman, commented:

“During the quarter we have significantly reduced our cost base with G&A costs down 45% and production costs down by 31% from the same period last year whilst increasing gas production by 57% and gas revenues by 97%. The fall in oil prices has obviously affected the bottom line like all our peers but the focus on increasing gas production has proven to be beneficial and has mitigated this to some extent.”

“In addition to this, we are pleased to have secured the funding from AGR to help provide greater security for, and the opportunity to grow, the company going forward. We continue the strategic review process, where we have entered into an exclusivity period for four weeks, to discuss a potential larger financing with AGR. I will update shareholders when we have further news in this important area.”

The full Quarterly Results together with Management’s Discussion and 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 the Tethys website at www.tethyspetroleum.com. The summary financial statements are attached to this press release.

The Company’s First Quarter 2015 financial statements are prepared under International Financial Reporting Standards (“IFRS”).

Tethys is focused on oil and gas exploration and production activities in Central Asia and the Caspian Region. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.

Cautionary Statements

This press release contains “forward-looking information” which may include, but is not limited to, statements with respect to our operations a strategic review process, the negotiation of a potential larger financing with AGR Energy and funding from AGR Energy providing greater security and the opportunity to grow the Company going forward. 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, 2014 for a description of risks and uncertainties relevant to our business, including our exploration activities. The “forward looking statements” contained herein speak only as of the date of this press release and, unless required by applicable law, the Company undertakes no obligation to publicly update or revise such information, whether as a result of new information, future events or otherwise.

The references in this press release to resources are to “Prospective Recoverable Resources” which means those quantities of petroleum estimated, to be potentially recoverable from undiscovered accumulations by application of future exploration and development projects. Prospective resources have both an associated chance of discovery and a chance of development. There is no certainty that any portion of these resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of these resources. The product types that may reasonably be expected from potential production consist of oil, condensate, natural gas and associated gas.

The resource estimates contained or referred to are estimates only and are not meant to provide a determination as to the volume or value of hydrocarbons attributable to Klymene Prospect and Karatau Lead. For both Klymene and Karatau the basis of the Expected Monetary Value (EMV) is the net Tethys working interest of the summated value of the Net Present Values 10% of all outcomes (including a failure case) multiplied by its Chance of Success, of that Prospect or Lead.

For Klymene Prospect the fiscal terms and oil pricing are as the NI 51-101 reserve report completed by Gustavson on Kazakhstan dated February 25th, 2015 and detailed in the AIF effective December 31, 2014.

For Karatau Lead fiscal terms are as per those published in the AIF and detailed in the Gustavson reserve report dated March 27, 2013. Product pricing was taken by Gustavson from 3rd party published information with an assumed discount for transport on the gas.

There are numerous uncertainties inherent in estimating quantities of resources and cash flows that may be derived, including many factors that are beyond the control of the Company. The following is a non-exhaustive list of factors which may have a significant impact on the above estimates of prospective resources: despite the classification that they are as yet undiscovered but may be potentially recoverable the Company may be unable to carry out the development or their potential recovery; the activity may not be economically viable; the Company may not have sufficient capital or time to develop them; there may be no market or transportation routes for the potential production; legal, contractual, environmental and governmental concerns might not allow for the recovery being undertaken; reservoir characteristics might prevent recovery. The recovery of the resources is subject to the following risks and uncertainties: market fluctuations, the proximity and capacity of oil and gas pipelines and processing equipment, government regulation, political issues, export issues, competing suppliers, operational issues (exploration, production, pricing, marketing and transportation), extensive controls and regulations imposed by various levels of government, lack of capital or income, the ability to drill productive wells at acceptable costs, the uncertainty of drilling operations, factors such as delays, accidents, adverse weather conditions, and the availability of drilling rigs and the delivery of equipment.

About Tethys Petroleum

Tethys Petroleum’s aim 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.

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