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Press release from Marketwire

Tethys Petroleum Limited: First Quarter 2012 Financial Results

Revenues Increased by 45%

Tuesday, May 15, 2012

Tethys Petroleum Limited: First Quarter 2012 Financial Results16:20 EDT Tuesday, May 15, 2012GRAND CAYMAN, CAYMAN ISLANDS--(Marketwire - May 15, 2012) - Tethys Petroleum Limited ("Tethys" or "the Company") (TSX:TPL)(LSE:TPL) today announced its first quarter 2012 financial results. The results are underlined by a 45% increase in revenues over the first quarter of last year.The Company reports financial results in accordance with International Financial Reporting Standards ("IFRS").RECENT HIGHLIGHTSQ1 2012 Total Revenue was USD$6.49 million (Q1 2011: USD$4.48 million) Q1 2012 average oil and gas production was 5,117 barrels of oil equivalent per day (Q1 2011: 4,531 barrels of oil equivalent per day) Q1 2012 average oil production from the Doris field in Kazakhstan was 1,038 barrels of oil per day (Q1 2011; 337 barrels of oil per day) Q1 2012 average gas production was 566 Mcm/d (Q1 2011: 511 Mcm/d) The full Q1 Results together with a Management Discussion & Analysis have been filed with the Canadian securities regulatory authorities. Copies of the filed documents may be obtained via SEDAR at www.sedar.com or on Tethys' website at www.tethyspetroleum.com. The summary financial statements are attached to this press release.The above highlights along with other operational and financial details will be further discussed in a scheduled conference call. Details of the conference call can be found below:Conference Call:A conference call will be held at 8:00 AM Eastern Standard Time 1:00 PM British Summer Time on Wednesday, May 16, 2012. The North American conference call number is 800-261-3417 and the outside North America conference call number is +1 617-614-3673. The conference call code to use is 26577200 . Please call in about 10 minutes before the starting time in order to be patched into the call.Webcast:The call is being webcast and can be accessed at: http://phoenix.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=213714&eventID=4773558 Notes to EditorsTethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Kazakhstan, Tajikistan and Uzbekistan. 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. See our Annual Information Form for the year ended December 31, 2011 for a description of risks and uncertainties relevant to our business, including our exploration activities. A barrel of oil equivalent ("boe") conversion ratio of 6,000 cubic feet (169.9 cubic metres) of natural gas = 1 barrel of oil has been used and is based on the standard energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.Tethys Petroleum LimitedCondensed Consolidated Statement of Financial Position (Unaudited)(in US Dollars) As atMarch 31, 2012December 31, 2011$'000$'000Non-current assetsProperty, plant and equipment125,994128,918Intangible assets100,91499,959Restricted cash1,4081,407Prepayments and other receivables9,79310,217Investment in jointly controlled entity1,1161,113239,225241,614Current assetsInventories2,0732,025Trade and other receivables5,8445,478Loan receivable from jointly controlled entity2,0002,013Cash and cash equivalents4,18010,746Restricted cash623885Derivative financial instruments - interest rate swap-63014,72021,777Total assets253,945263,391Equity attributable to shareholdersShare capital28,67128,669Share premium306,725306,725Other reserves39,17238,530Accumulated deficit(151,710)(144,962)Non-controlling interest8,8188,918Total equity231,676237,880Non-current liabilitiesFinancial liabilities - borrowings2,8191,632Deferred taxation2,1072,111Trade and other payables500547Asset retirement obligations2303865,6564,676Current liabilitiesFinancial liabilities - borrowings6,0258,396Derivative financial instruments - warrants1,348264Derivative financial instruments - foreign currency hedge8157Deferred revenue1,3301,839Trade and other payables7,75810,179Current tax144-16,61320,835Total liabilities22,26925,511Total shareholders' equity and liabilities253,945263,391Tethys Petroleum Limited Condensed Consolidated Statement of Comprehensive Income (Unaudited) For the three months ended March 31, 2012 (in US Dollars) 20122011$'000$'000re-presentedSales and other revenues6,4874,480Total revenue and other income6,4874,480Production expenses(2,910)(1,752)Depreciation, depletion and amortisation(3,036)(2,612)Listing expenses-(6)Business development expenses(184)(20)Administrative expenses(4,986)(5,271)Share based payments(603)(1,193)Foreign exchange (loss)/gain- net(64)200Fair value loss on derivative financial instrument(896)(8)Loss from jointly controlled entity(62)(209)Net finance costs(454)(7)Loss before taxation(6,708)(6,398)Taxation(140)103Loss for the period(6,848)(6,295)Loss attributable to:Shareholders(6,748)(6,295)Non-controlling interest(100)-Loss for the period(6,848)(6,295)Basic and diluted(0.02)(0.02)Tethys Petroleum LimitedCondensed Consolidated Statement of Cash Flows (Unaudited) For the three months ended March 31, 2012 (in US dollars) 20122011$'000$'000Cash flow from operating activitiesLoss before taxation for the period(6,708)(6,398)Adjustments forShare based payments6031,193Net finance cost4547Depreciation, depletion and amortization3,0362,612Fair value loss on derivative financial instrument8968Net unrealised foreign exchange loss3543Loss from jointly controlled entity62209Deferred revenue(509)(2,422)Net change in non-cash working capital(1,562)(322)Net cash (used) from operating activities(3,693)(5,070)Cash flow from investing activitiesInterest received8832Expenditure on exploration and evaluation assets(995)(1,866)Expenditures on property, plant and equipment(214)(8,986)Investment in restricted cash261(2)Investment in jointly controlled entity(3)-Payments made on behalf of jointly controlled entity-(2,878)Movement in advances to construction contractors367(1,827)Value added tax receivable57(905)Net change in non-cash working capital(1,279)(52)Net cash (used) from investing activities(1,718)(16,484)Cash flow from financing activitiesProceeds from issuance of short-term borrowings, net of issue costs3,520-Proceeds from issuance of long-term borrowings, net of issue costs2,306-Repayment of long-term borrowings(156)(86)Repayment of short-term borrowings(6,459)-Interest paid on long-term borrowings and other non-current payables(204)(100)Other non-current liabilities(74)(76)Net cash (used) from financing activities(1,067)(262)Effects of exchange rate changes on cash and cash equivalents(88)81Net decrease in cash and cash equivalents(6,566)(21,735)Cash and cash equivalents at beginning of the period10,74679,135Cash and cash equivalents at end of the period4,18057,400FOR FURTHER INFORMATION PLEASE CONTACT: Tethys Petroleum LimitedNorth AmericaSabin Rossi, Vice President Investor RelationsOffice: +1 416-941-1257+1 416-947-0167 (FAX)ORTethys Petroleum LimitedEuropeVeronica Zhuvaghena, Vice President Corporate CommunicationsOffice: +44 1481 725911+44 1481 725922 (FAX)ORFirstEnergyCorporate Brokers:Hugh Sanderson / Derek SmithOffice: + 44 207 448 0200ORRichard Redmayne / Jonathan Wright / Stewart DicksonSeymour PierceOffice: +44 207 107 8000ORQuam IRAsia Pacific:Anita WanOffice phone/fax: +852 2217 2999ORBen Brewerton / Edward WestroppFTI ConsultingOffice: +44 207 831 3113ORinfo@tethyspetroleum.comTethys Petroleum LimitedWeb: http://www.tethyspetroleum.comMobile site: m.tethyspetroleum.com