Fourth quarter and year end report 2014 * As per 31

* As per 31 December 2014 audited reserves Block 3&4 Oman net to Tethys: * 1P reserves 11,794 thousand barrels (10,800) * 2P reserves 17,779 thousand barrels (15,201) * 3P reserves 25,080 thousand barrels (19,968) ^ * The increase in 2P reserves represents an internal reserve replacement ratio of 193 per cent * Fourth quarter 2014 net sales of MSEK 310 compared to MSEK 296 in the third quarter 2014, an increase with 5 per cent quarter on quarter. The net sales development is primarily based on moving from an underlift position to an overlift position * Net cash position of MSEK 347 as per 31 December 2014 compared to MSEK 161 as per 30 September 2014. The currency exchange effect on cash and cash equivalents amounted during the fourth quarter 2014 to MSEK 40, which has positively affected net result * Fourth quarter production was in line with third quarter 2014. Total production amounted to 768,226 barrels corresponding to 8,350 barrels per day * Net result after tax during fourth quarter 2014 amounted to MSEK 18 and was negatively affected by a MSEK 127 write down related to Lithuanian producing asset Gargzdai. The result is down 89 per cent compared to MSEK 167 during third quarter 2014 * Fourth quarter 2014 earnings per share before and after dilution of SEK 0.51 compared to SEK 4.71 during third quarter 2014   | MSEK (unless specifically stated) | Fourth quarter 2014 | Third quarter 2014 | % Q4 2014 to Q3 2014 | Fourth quarter 2013 | | Production, before government take (bbl) | 768,226 | 772,722 | -1% | 499,028 | | Average daily production, before government take (bbl) | 8,350 | 8,399 | -1% | 5,424 | | Net sales, after government take (bbl) | 434,035 | 399,352 | 9% | 271,175 | | Average selling price per barrel, USD | 97.09 | 107.57 | -10% | 108.47 | | Net sales of oil and gas | 310 | 296 | 5% | 193 | | Operating result | 14 | 173 | -92% | 52 | | EBITDA | 200 | 232 | -14% | 148 | | Result for the period | 18 | 167 | -89% | 45 | | Earnings per share before and after dilution, SEK | 0.51 | 4.71 | -89% | 1.26 | | Net debt/(net cash) | (347) | (161) | 116% | 127 | | Investments | 101 | 45 | 124% | 80 |   | MSEK (unless specifically stated) | Full year 2014 | Full year 2013 | % FY 2014 to FY 2013 | | Production, before government take (bbl) | 2,804,240 | 1,709,706 | 64% | | Average daily production, before government take (bbl) | 7,692 | 4,684 | 64% | | Net sales, after government take (bbl) | 1,464,228 | 850,926 | 72% | | Average selling price per barrel, USD | 103.87 | 106.63 | -3% | | Net sales of oil and gas | 1,046 | 592 | 77% | | Operating result | 404 | 285 | 42% | | EBITDA | 753 | 479 | 57% | | Result for the period | 350 | 240 | 46% | | Earnings per share before and after dilution, SEK | 9.86 | 6.76 | 46% | | Net debt/(net cash) | (347) | 127 | -373% | | Investments | 259 | 290 | -11% |   Dear Friends and Investors Let us stand back for a second and ask our self a question: What can we realistically expect of a year if we are an oil company? Rising production is nice and increase in reserves even nicer. Record cash flow for each consecutive quarter, and of course for the full year, is pretty basic. A strong balance sheet, an untapped up to MUSD 100 credit facility and more than a third of a billion SEK in net cash position is very nice to have. All that did Tethys deliver and, to top it off, we also added record production for almost all 12 months of the year. The story would have been perfect, if it wasn’t for the dramatic last quarter of the year - the collapse of the oil price. We have experienced the largest nominal drop in oil prices ever and the largest percentage drop in more than 30 years (with the exception for the financial anomaly in 2008 and 2009). Unless there is a sharp rebound quickly, this new level is going to have a profound impact on our industry. Expensive future projects are going to be shelved, high cost production (read primarily unconventional) will be shut in and weaker players will seek to merge with stronger players (or if you wish, strong players will prey on weaker players). Fortunately, Tethys is today one of the strongest players in our peer group. We are proud to report yet another quarter with record high sales. In the fourth quarter, our sales amounted to MSEK 310. Our EBITDA for the quarter amounted to MSEK 200, representing a slight decrease compared to the third quarter 2014. Following a write down of MSEK 127 related to our producing Lithuanian assets, our net result for the quarter fell to MSEK 18. The non-cash write down is a consequence of the significantly lower oil prices, but if the oil prices are to recover, the asset could start generating value for us again. We end the year with yet another strong reserve report. In 2014, we had an internal reserve replacement ratio of 193 per cent and our 2P reserves now stand at 17.8 million barrels of oil. Our oil production remained stable in the fourth quarter, and we end the year with a new record high monthly production in December of 8,438 barrels of oil per day. Let me also emphasize that our project remains robust even at an oil price of USD 50 per barrel. We would, with the present production volumes and everything else equal, generate an annual operating cash flow of MUSD 40-50 even at an oil price of USD 50 per barrel. Outlook Let us turn to the future and look at Tethys in 2015. Following the oil price development, our investment plans for the year are currently being revised. But we know our direction, and expect a large part of the upcoming year’s operating cash flow to be reinvested in Blocks 3 and 4 onshore Oman. This gives us every reason to expect that our reserves and our production will continue to increase also during 2015. The Lower Buah area on Block 4, that delivered most of the growth in 2014, will continue to be in focus in 2015. The strong growth in reserves and production during the first six months resulted in an upgrade and revision of the geological model for the Lower Buah area, and focus during the second half of the year was on interpretation of data. Important insights were reached, which are to be implemented during 2015. Among these insights, water injection is expected to have a very strong impact on the production from Lower Buah, and an injection programme has been launched early in 2015. New leads in the Lower Buah area continue to be identified as seismic interpretation goes on and the geological understanding of the area increases. We expect to employ at least one rig full time during all of 2015 in this area of Block 4. Seismic studies in other parts of the Blocks will continue and we also expect drilling activity in and around the producing Farha area and in some of the areas where seismic studies have recently been completed. As noted above, our balance sheet is extremely strong, which presents us with a number of pleasant choices. The fall in oil prices has opened up, and continues to open up, a number of interesting opportunities and we are actively sourcing and evaluating potential new projects. We are also monitoring our capital needs for investments in our current portfolio. We may very well have seen the end of falling oil prices, but for the time being we believe that a general cash reserve should be kept to offer protection if oil prices were to fall further. And last, but not least, we are aware that we are currently over-capitalized, which calls for close monitoring of ways to distribute cash to our shareholders. We launched a share buy-back programme in 2014, but other means of distribution to our shareholders are also being evaluated. How these choices play out is to a large part dependent on how the oil price evolves, since that is one of the most important parameters when evaluating our investment needs and opportunities. So stay with us - the drama is back in the oil business, and we intend to rise to the challenge!   Stockholm in February 2015 Magnus Nordin                                                                Managing director   For further information, please contact: Magnus Nordin. Managing director. phone: +46 8 505 947 02. e-mail: magnus@tethysoil.com or Morgan Sadarangani. CFO. phone +46 8 505 947 01. e-mail: morgan@tethysoil.com     This report has not been subject to review by the auditors of the company. Tethys Oil is a Swedish energy company focused on exploration and production of oil and natural gas. Tethys Oil’s core area is Oman, where the company is one of the largest onshore oil and gas concession holders. Tethys Oil also has exploration and production assets onshore Lithuania and France. The shares are listed on Nasdaq Stockholm (TETY).