Mr. Casey McCandless reports

TETHYS PETROLEUM CORPORATE UPDATE

Tethys Petroleum Ltd. has provided an update on the company's operations in the Republic of Kazakhstan.

Operation update

On April 10, 2025, Tethys resumed production on the Akkulka and Kyzloi gas fields. Twenty out of 21 wells are operating, and production has stabilized at a daily level of about 205,000 to 210,000 cubic metres per day.

Oil production in March was negatively impacted by severe weather conditions, which limited the amount of oil that could be shipped. As a result, the production levels were temporarily reduced. Over the past three days, oil production has averaged about 320 tons per day.

Reserve report

Tethys engaged McDaniel and Associates Consultants to provide a reserve report as of Dec. 31, 2024. This report has been completed and was prepared in compliance with National Instrument 51-101 (Standards of Disclosure for Oil and Gas Activities) and the Canadian oil and gas evaluation handbook. Over all, the total proven and total proven plus probable reserves are about the same as last year, but net present value calculations are lower primarily due to lower oil prices. The total proven and probable NPV using a 10-per-cent discount rate is about $560-million as compared with $629-million in 2023 (down about 11 per cent). The following is a summary from the report.

While the volumes of total proven and total proven plus probable reserves remain broadly consistent with the prior year, the net present value has declined. This reduction is primarily due to a decrease in Brent crude prices and a widening of Brent export differentials, which have lowered netbacks. Additionally, government restrictions on refined product exports have reduced the prices that domestic refineries can offer for crude oil. At the same time, the fiscal and regulatory framework imposes a significantly higher tax and cost burden on exports, limiting the benefit of accessing international markets. These factors have had a greater impact on independent and foreign producers, which lack access to state-linked infrastructure and domestic sales channels.

About Tethys Petroleum Ltd.

Tethys is focused on oil and gas exploration and production activities in central Asia and the Caspian region.

We seek Safe Harbor.