Tethys Oil Interim report Q2 2013

www.tethysoil.com

Second quarter 2013

www.tethysoil.com

Tethys’ assets

Oman:

• Block 3 & 4

• Block 15

Lithuania

• Gargzdai

• Rietavas

• Raseiniai

France

• Attila

• Alès

• Sweden

Gotland

• Större/Mindre

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Tethys Oil – growth at low risk

Long term capital structure targets:

• Debt/equity ratio of 30-40%

• Net debt/EBITDA of up to 2x

• Strong cash position to have the ability

to grow

Operational targets:

• Develop Tethys Oil’s business as an

attractive licence holder and partner

• Focus on developing the assets in

Oman

• Evaluation of both conventional and

unconventional assets in Lithuania

• Actively evaluate new projects

www.tethysoil.com

A rise of more than 600 percent since IPO

2001 - 2003 2004 2006 2005 2010 2009 2008 2007 2012 2011

Tethys Oil

was founded

Aquisition of

licences and

interests in

Denmark,

Turkey and

Spain

IPO and

listing on

First North

Acquisitions

of licences in

France, Attila

and Oman,

Block 15.

Drilling in

Denmark

Drilling on

Block 15

Acquisition of

licences in

Oman, Blocks

3 & 4 and

Sweden,

Gotland

20 % of

Blocks 3 & 4

farmed out to

Mitsui

Early

production

from Blocks

3 & 4 begins

Encouraging

results from

appraisal

drilling on

Blocks 3 & 4

Farha South

field on Block

3 expands

rapidly

Acquisition of

licence in

France ,

Bassin d’Ales

Three year

extension of

licence

Block 15

Licence Blocks

3 & 4 converted

to production

licence and

extended until

2040

Production

facilities on

Farha and

Saiwan fields

completed

Acquisition of

interests in

Lithuania, 3

licences, 1 in

production

Farmout of

Lithuanian

licence

Rietavas to

Chevron in

exchange for

fully funded

work

programme

Market Cap

MSEK

2,000

1,000

www.tethysoil.com

Tethys’ licences

Production Appraisal/Exploration

Country Licence name Total area Tethy’s

interest

Partners Production

Oman Block 3 & 4 34 610 km2 30% CCED, Mitsui Production

Oman Block 15 1 389 km2 40% Odin Energi Exploration

Lithuania Rietavas 1 594 km2 14% Odin Energi,

private investors,

Chevron

Exploration

Lithuania Raseiniai 1 535 km2 26% Odin Energi,

private investors

Exploration

Lithuania Gargzdai 884 km2 25% Odin Energi,

Geonafta

Production

France Attila 1 986 km2 40% Galli Coz Exploration

France Alès 215 km2 37,5% Mouvoil Exploration

Sweden Gotland

större/mindre

581 km2 100% Exploration

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Q2 Operational highlights

• Production from Oman and Lithuania of

399,839 bbl, 4,394 per day

• Drilling program with 3 appraisal wells

launched on B4EW4 structure on Block

4 in Oman

• An additional drilling rig employed in

Blocks 3 & 4

• Lithuania exploration well flows small

amounts of oil and confirms presence of

an active petroleum system

• The investment budget extended from

MSEK 300 to MSEK 355

www.tethysoil.com

Oman – Block 3 & 4 update

• Work programme extended –

additional MSEK 55 will be

spent on further seismic

studies, an increased number

of drillings and a new pipeline

• Focus on B4EW4 discovery –

several oil bearing layers

• Seismic work - connecting

Block 3 and Block 4

• Drillings mainly concentrated

to water injection programme

www.tethysoil.com

Drillings in Oman

• Focus on the water injection programme

• Resources spent on B4EW4 discovery in the second quarter

5 4

8

1

3

2

2

1

4

4

1

1 2

1

0

2

4

6

8

10

12

Q2-2012 Q3-2012 Q4-2012 Q1-2013 Q2-2013

Water source wells

Exploration wells

Water injection wells

Wells in previouslyundrilled fault block

Production wells

4

22

37

17

0

5

10

15

20

25

30

35

40

2010 2011 2012 2013 6 m

www.tethysoil.com

Oman - Block 15 update

• JAS-1 in long term production

test

• Flow rates of 200 barrels a day,

44 degree API

• Drilling rig for JAS-2 on its way to

drill a vertical sidetrack to the

JAS-2

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Lithuania – Rietavas update

Conventional exploration, Gargzdai

look a like and shale gas/oil. Work

programme fully funded by Chevron

• Exploration and appraisal work

continues

• Data compiled and analysed

• Varoius tests on Silale-1

• Appraisal well Silale-2 in progress

www.tethysoil.com

Lithuania – Raseniai update

Exploration for conventional oil in

Silurian Reefs, shale potential

• Lapgiriai-1 spudded in April.

Presence of oil confirmed.

• 3D seismic study, partly funded by

EU, will be carried out and

collection of data has started.

www.tethysoil.com

Production (barrels)

Avg daily production BOPD

Revenue (MSEK)

Average achieved oil price

(USD/barrel)

EBITDA(MSEK)

Result for the period (MSEK)

Operating cash flow (MSEK)

Operating cash flow per share (SEK)

Second Quarter

2013

400

4,394

110

107.26

83

39

79

2.23

-44,806

Financial highlights Q2 2013

12

Second Quarter

2012

302

3,320

154

119.34

120

15

88

2.68

Over/underlift movement (bbl) 34,177

www.tethysoil.com

Daily and Monthly production (Tethys’ Share)

1 000,00

1 500,00

2 000,00

2 500,00

3 000,00

3 500,00

4 000,00

4 500,00

5 000,00

0,00

20 000,00

40 000,00

60 000,00

80 000,00

100 000,00

120 000,00

140 000,00

160 000,00

180 000,00

200 000,00

bbls/day bbls Tethys Oil daily and monthly production

Monthly production Oman Monthly production Lithuania Daily productionOman & Lithuania

www.tethysoil.com

Sales and production

Sales growth

0

20

40

60

80

100

120

140

160

180

-30,0

-20,0

-10,0

0,0

10,0

20,0

30,0

40,0

50,0

60,0

Q2 Q3 Q4 2013 Q1 Q2

Sales Oil and gas, MSEK Sales growth %

% MSEK

Volumes

14

0

10

20

30

40

50

60

70

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

450 000

Q2 Q3 Q4 2013 Q1 2013 Q2

Sold volumes (Bbl)

Produced volumes Tethys share (Bbl)

Sold volumes/Produced volumes, %

www.tethysoil.com

Oil price development

80,00

85,00

90,00

95,00

100,00

105,00

110,00

115,00

120,00

125,00

130,00

US

D p

er

Barr

el

Spot Brent and Omani Blend Futures

BRENT SPOT OMANI BLEND FUTURES TETHYS OIL SALE PRICE

www.tethysoil.com

Oman production

• Average daily production 4,261bbl

• Production from: Farha South,

Saiwan East and test production

B4EW4

• The JV’s share of production 52

percent

• Successful water injection

programme increased production

by 8 percent from Q1 to Q2

• Selling price SEK 107.68 (107.26)

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000

Daily production Tethys' share (bo)

2012

2013

www.tethysoil.com

Lithuanian production

• Average daily production 133 bbl

in Q2

• Declining production - according

to plan

0

20

40

60

80

100

120

140

160

180

Daily production Tethys' share (bo)

2012

2013

www.tethysoil.com

EBITDA

0,0

20,0

40,0

60,0

80,0

100,0

120,0

2012 Q2 Q3 Q4 2013 Q1 Q2

Operating expenses Administrative expenses EBITDA

0

50

100

150

200

250

Q2 2012 Q3 Q4 2013 Q1 Q2

EBITDA, MSEK EBITDA-marg %

Q4 2012 and Q1 2013 EBITDA include revenues from associates (Lithuania) and the Mitsui bonus.

www.tethysoil.com

Result overview, second quarter

19

Net sales of oil and gas

MSEK 110

Operating result

MSEK 49

Operating expenses

MSEK 17

Depreciation of oil and gas

properties

MSEK 33

Administrative expenses MSEK 12

Revenues Operating result

www.tethysoil.com

Cash, MSEK

Cash per share, SEK

Long term debts, MSEK

Shareholders Equity, MSEK

Investments (First Half year), MSEK

June 30, 2013

237

6.67

419

990

149

Financial highlights Q1 2013

20

Dec 30, 2012

248

6.98

417

860

442

www.tethysoil.com

Investments

• Majority of invesments were

made on Blocks 3 & 4

• Investments focus on appraisal

drilling, seismic and water

injection programmes

• About MSEK 15 spent on Block

15

21

0

50

100

150

200

250

300

Q2 2012 Q3 Q4 2013 Q1 Q2

MSEK Investments

www.tethysoil.com

Share price

0

10

20

30

40

50

60

70

80

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

900 000

1 000 000

# Shares

Total volume Closing price

SEK

www.tethysoil.com

Current Drilling Operations

T-55: FS-72 2nd WI FB N

Grand: FS-68 W/O FB AG

A-204: B4EW5

new structure about 15 km south of B4EW4 sturucture

www.tethysoil.com

Seismic Activities

650km2 2D completed

100% in 2013

Processing started, complete Nov 2013

Aquisition started Aug 10

750km2 3D complete Nov 2013

Complete processing Mar 2014

B4EW4: 470km2 3D completed

100% in 2013

Processing completed

Farha old: Reprocessing completed

100% in 2013 Farha new: 510km2 3D completed

55% in 2012, 45% in 2013

Processing completed

www.tethysoil.com

Farha

Farha Old 3D • Producing Barik FB: 16 • New FB drilled 2013: 1 (FS-68 in A

Farha New 3D • Leads

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B4EW4 and Buah

B4EW4 • Producing Buah: 1 field • Lower Buah wells: 2, • Middle Buah wells: 1, • LAB wells: 1, LB-3 S/I

NOTE: these two in

Farha new 3D

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New Areas

2D Area to the East • Potential formations:

• Barik – Sands • Lower Al Bashair – Sands • Amin – Sands • Buah – Carbonates • Khufai – Carbonates

3D Area to the West

www.tethysoil.com

Water Injection Fault Block B

0

200

400

600

800

1000

1200

1400

1600

1800

2000

8-Oct-10 5-Feb-11 5-Jun-11 3-Oct-11 31-Jan-12 30-May-12 27-Sep-12 25-Jan-13 25-May-13 22-Sep-13

Oil

Pro

du

ctio

n (b

/d)

Well Test

Model

Model WI

Bottom Hole

Pressure

Water injection started June 19, 2012

www.tethysoil.com

Raseiniai

• One proven oil field, Lapgiriai

• Defined leads

• Small production from Lapgiriai

www.tethysoil.com

Rietavas

• One proven oil field, Silale

• Several leads

• Small production from Silale

Planned 2D area

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Outlook

• Increased investment budget on Blocks 3 &

4 from MSEK 300 to MSEK 355

• Actively sourcing a fourth rig to further

speed drilling activity

• Continue to explore the potential of the

Farha trend

• Lower Buah opening up a completely new

pay to increase reserves and production

• 2D seismic study from the Eastern part of

Block 4 indicates chance to a “mirror” Farha

trend together with more Buah prospects

31

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