Tuesday, February 5, 2008 – St. Peter Port, Guernsey – Tethys Petroleum Limited (“Tethys”) (TSX: TPL) today updated shareholders on the effects of the recent extreme weather in China, Tajikistan and Central Asia.
Temperatures in Dushanbe, Tajikistan, have been unusually low, and heavy snow has been impeding transport links into and within the country. There has also been severe shortages of electricity. These factors have resulted in delays in planned operations on the Beshtentak and Khoja Sartiz fields, however perforating equipment has now arrived from the United States and operations are expected to commence within the next week.
Also extreme weather in China has caused problems with transportation and this has lead to delays in the arrival of certain spare parts and related maintenance equipment for the compressors at the Kyzyloi gas compressor station on the Bukhara-Urals pipeline system in Kazakhstan. Although the Kyzyloi field is producing gas at a stable rate, delays in the arrival of these parts may have a small effect on the overall gas production rate for the initial two month run-in period. It is expected that production will be back to the planned rate of 22 million cubic feet (623 thousand cubic metres) per day by the end of this month.
The severe weather in China may also cause delays in the delivery of Tethys’ deep drilling rig which is being built in China, although these delays are not expected to be significant.
Graham Wall, Vice President Technical of Tethys commented “The past few weeks have seen some of the most severe weather in the area for many years, and this has resulted in severe disruption. We are doing everything we can to mitigate the situation and to ensure that we meet our targets, however we hope for an improvement in the weather and transport situation soon.”
Tethys 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 Tajikistan and the Kulob Area appears in Tethys’ prospectus dated June 18, 2007.
For more information please contact:
Investor Relations Manager
Tethys Petroleum Limited
TD Canada Trust Tower
161 Bay Street, 27th Floor
Toronto N5J 2S1