Mr. Casey McCandless reports

TETHYS PETROLEUM PRESS RELEASE: CORPORATE UPDATE

Tethys Petroleum Ltd. has provided a corporate update.

Commercial licence update

Tethys is moving forward on the necessary steps to achieve a licence for commercial production. The company completed the reserve estimation for Kulbas, and a mining allotment of 67.72 square kilometres was approved at the end of June. An application for securing a preparatory period of three years with the assigned mining allotment for the Kul Bas exploration and production contract was submitted to the Ministry of Energy. The company is working on the field development project with the goal of signing a production contract for a 25-year period by January of 2024. The report on determination of environmental impact assessment scope was approved on June 26, and the environmental impact assessment was submitted on June 29 and should be reviewed in August. To meet the ecological requirements, the company needs to install gas turbines to convert the gas produced from the wells. The company entered into an agreement to procure gas turbines with an expected delivery date in August.

Oil production

The company produced 15,376 tons of oil in June and is planning to increase production about 15 per cent for July/August if the logistics can accommodate the oil deliveries. KBD-11 can produce through mid-August from the Barremian zone, and oil production from the pilot production is scheduled to expire on Oct. 16. The company is planning to perforate and test KBD 10 in mid-August and continue testing KBD-11 at the Upper Barremian through Oct. 16.

Annual general meeting

The annual general meeting has been scheduled for Sept. 21, 2023, in Memphis, Tenn.

Gas contract negotiations

The company is continuing to pursue a resolution with QazaqGaz in regard to payment and price, and the gas field remains shut in. The company is still trying to negotiate, but may be forced to initiate arbitration to get the matter resolved.

Auction for new exploration blocks

The company chose not to participate in the latest auction for new exploration blocks given the constrained short-term projected cash flows.

Normal course issuer bid update

As of July 26, the company has repurchased 110,250 shares of the 5,805,361 common shares approved under the new program for this year that will expire Feb. 10, 2024.

About Tethys Petroleum Ltd.

Tethys is focused on oil and gas exploration and production activities in central Asia and the Caspian region. Tethys believes that significant potential exists in both exploration and discovered deposits in the area.

We seek Safe Harbor.