AKK13 New Gas Discovery

January 15, 2008

Tuesday, January 15, 2008 – Bozoi, Kazakhstan – Tethys Petroleum Limited (“Tethys”) (TSX:TPL) today announced a new gas discovery with the results of the Akkulka AKK13 exploration well in Kazakhstan.

  • The AKK13 well was drilled some 3.6 miles (5.7 km) north-west of AKK12 to a total depth of 1.910 feet (582 metres). The well was perforated over a 20 feet (6 metre) interval between 1,621 and 1,641 feet RKB (494-500 metres RKB).
  • Stabilised flow rates from AKK13 have been calculated at some 4.036 million cubic feet (MMcf) (114.27 thousand cubic metres (Mcm)) of gas per day on a 60/64ths inch (24 mm) choke with a flowing tubing head pressure of 154 psig (10.5 atmospheres).
  • The production zone is analogous to the neighbouring Kyzyloi field and the recent AKK09 and AKK11 discoveries. The AKK13 accumulation is a separate accumulation similar to the one discovered by the AKK11 well.
  • The total aggregate gas flow rate of the Akkulka exploration wells drilled by Tethys to date is now 44.8 MMcf/d (1.27 MMcm/d).
  • The rig is now being mobilized to the AKK14 location to the east of AKK13.
  • Tethys recently completed a 35 mile (56 km) pipeline and associated compression plant, connecting Tethys’ Kyzyloi Gas Field to the Bukhara-Urals trunkline, one of Central Asia’s major export trunklines. The Akkulka discoveries will also be tied into this pipeline once additional compression is installed, this anticipated to be in Q4 2008.
  • Gas production commenced from the Kyzyloi Gas Field on December 19, 2007. An initial two month run-in period has now been agreed with the gas buyer in order to optimise and adjust the compressors and the input pressures to the Bukhara-Urals. Average rates during this run-in period are planned to be approximately 17.6 MMcf/d (500 MCM/d). To date a maximum flow rate of some 26.7 MMcf/d (757 MCM/d) has been achieved into the Bukhara-Urals trunkline.

TPL is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republic of Kazakhstan and more recently the Republic of 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, including, the risks and uncertainties outlined under the section titles “Risk Factors and Uncertainties” in our prospectus (available at www.sedar.com). Should one or more of these risks materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. Additional information in respect of the Kyzyloi shallow gas field and Akkulka area (also referred to as the Akkulka Block), including location, area, geologic age and lithology, depth, estimated costs and gas marketing information, appears in Tethys’ prospectus dated June 18, 2007.

For more information please contact:
Sabin Rossi
Investor Relations Manager
Tethys Petroleum Limited
TD Canada Trust Tower
161 Bay Street, 27th Floor
Toronto N5J 2S1
Office: 1-416-572-2065
Fax: 1-416-572-2201
Cell: 1-617-669-1841
e-mail: info@tethys.gg