Total and CNODC Farm-in to Tethys' Tajikistan Assets

Total and CNODC Farm-in to Tethys' Tajikistan Assets 
PARIS, FRANCE -- (Marketwire) -- 12/21/12 -- Tethys Petroleum Limited
("Tethys" or "the Company") (TSX:TPL)(LSE:TPL), the oil and gas
exploration and production company focused on Central Asia, today
announced that its subsidiary, Kulob Petroleum Limited, has signed a
farm-out agreement ("FOA") for the Bokhtar Production Sharing
Contract ("PSC") in Tajikistan with subsidiaries of Total S.A.
("Total") and the China National Oil and Gas Exploration and
Development Corporation ("CNODC"). 
Terms highlights: 

--  The interest in the PSC will be held equally by the three partners
    namely Kulob Petroleum Limited ("KPL"), Total E&P Tajikistan B.V. (a
    subsidiary of Total S.A.) and CNODC Coop UA (a subsidiary of CNODC).  
--  Tethys owns an indirect 85% controlling interest in KPL. 
--  KPL will receive 66.67% of back costs amounting to a payment of
    approximately USD60 million in cash upon completion. As funding for this
    project to date has been provided almost entirely by Tethys, monies
    received by KPL from this transaction will first be utilised to repay
    these loans to Tethys. The exact amount to be confirmed by the
    Tajikistan government. 
--  KPL will be partially carried on a USD80 million initial work programme
    such that it will pay 33.33% of its share of costs (therefore the
    funding obligation will be approximately USD8.9 million of the USD80
    million work programme). 
--  The initial work programme is expected to comprise of further seismic
    data acquisition followed by a deep exploration well. Full details of
    the 2013-2014 work programme will be announced in Q1 2013. 
--  The PSC will be operated by a Joint Operating Company to be set up and
    owned by KPL, Total and CNODC, in proportion to their ownership in the

The farm-out is subject to final Tajik governmental approvals and
State consents. Closing will take place once these approvals and all
other conditions precedent under the FOA are satisfied and is
expected to take place in the first quarter of 2013. 
An Independent Resource Report of the Bokhtar PSC (dated June 30,
2012), prepared in accordance with Canadian National Instrument
51-101, estimates Gross unrisked mean recoverable prospective
resources of 27.5 billion barrels of oil equivalent, consisting of
114 trillion cubic feet (3.22 trillion cubic metres) of gas and 8.5
billion barrels of oil. 
Dr David Robson, Executive Chairman and President of Tethys, said:  
"This is a tremendous deal for Tethys and extremely beneficial for
the country of Tajikistan. It rewards us for taking the first steps
into Tajikistan in 2006 and validates our extensive technical work to
date. Total and CNPC are world class companies and we look forward to
working with our new partners in Tajikistan which in our view has
world class potential! Our partners each bring additional strengths
to the project with extensive experience and skills in exploring and
developing giant petroleum deposits and with the new pipelines
carrying gas from Central Asia to China providing a potential export
route for any sizeable gas discovery. This farm-out also provides
significant additional funding for our Company to accelerate our
other current projects."  
Total S.A. 
Total is one of the largest integrated oil and gas companies in the
world, with activities in more than 130 countries. The Group is also
a first rank player in chemicals. Its 96,000 employees put their
expertise to work in every part of the industry - exploration and
production of oil and natural gas, refining and marketing, new
energies, trading, and chemicals. Total is working to help satisfy
the global demand for energy, both today and tomorrow. 
CNODC is a wholly owned subsidiary of China National Petroleum
Conference Call:  
A conference call will be held at 2:00 PM Greenwich Mean Time (9:00
AM Eastern Standard Time) on Friday, December 21, 2012. The North
American conference call number is 800.884.5695 and the outside North
America conference call number is +1-617.786.2960. The conference
call code to use is 38983239. Please call in about 10 minutes before
the starting time in order to join the call. 
The call is being webcast and can be accessed at: 
Tajikistan Overview 
The Republic of Tajikistan is an independent country with the
population, totaling over 7 million people and mostly concentrated in
the capital, Dushanbe. Tajikistan shares borders with Kyrgyzstan to
the north, China to the east, Afghanistan to the south and Uzbekistan
to the west.  
On December 10, 2012, the General Council of the World Trade
Organization (WTO) approved Tajikistan's accession package, allowing
the nation to become a member of the global trade body in 2013.  
While Tajikistan's economy has previously focused on agriculture and
aluminium production, there is great potential for the development of
its energy industry and the country's mineral and vast hydropower
resources are now being further developed. The country is encouraging
foreign investment and constantly working on improving the relevant
Tajikistan currently imports over 90% of its oil and gas and the
government is prioritising the development of domestic resources. The
vast majority of these petroleum deposits are located in the northern
and south-western part of the country, the area where Tajikistan
borders with Uzbekistan and Afghanistan. The south-western part of
the country is the Afghan-Tajik extension of the hydrocarbon-rich
Amu-Darya basin - home to some of the world's largest gas and gas
condensate fields in neighbouring Uzbekistan and Turkmenistan. These
same reservoirs, that are prolific producers in the adjacent
countries, have never been drilled in Tajikistan to date. With these
resources developed, the country would become self-sufficient and
potentially evolve into a significant hydrocarbon exporter,
transporting its oil and gas to several possible markets, including
neighbouring China, a country with ever growing energy demand. In the
last few years China has constructed large oil and gas pipelines
transporting these resources from Central Asia overland to China with
further pipelines under construction to support their growing energy
At a recent meeting between the Prime Ministers of Tajikistan and
China the Tajik PM is reported to have said that he welcomes Chinese
enterprises to invest in the country and thanked the Chinese for
their efforts to support Tajikistan. He also stated that he believes
the relationship between Tajikistan and China will become even closer
and more fruitful in future. 
To view the map associated with this press release, please visit the
following link: 
The references in this press release to "prospective resources" means
those quantities of petroleum estimated, as of June 30, 2012, to be
potentially recoverable from undiscovered accumulations by
application of future development projects. Prospective resources
have both an associated chance of discovery and a chance of
development. There is no certainty that any portion of these
resources will be discovered. If discovered, there is no certainty
that it will be commercially viable to produce any portion of these
The resources estimates contained or referred to are estimates only
and are not meant to provide a determination as to the volume or
value of hydrocarbons attributable to the Company's properties. There
are numerous uncertainties inherent in estimating quantities of
resources and cash flows that may be derived, including many factors
that are beyond the control of the Company. The following is a
non-exhaustive list of factors which may have a significant impact on
the above estimates of prospective resources: despite the
classification that they are as yet undiscovered but may be
potentially recoverable the Company may be unable to carry out the
development or their potential recovery; the activity may not be
economically viable; the Company may not have sufficient capital or
time to develop them; there may be no market or transportation routes
for the production; legal, contractual, environmental and
governmental concerns might not allow for the recovery being
undertaken; reservoir characteristics might prevent recovery. The
recovery of the resources is subject to the following risks and
uncertainties: market fluctuations, the proximity and capacity of oil
and gas pipelines and processing equipment, government regulation,
political issues, export issues, competing suppliers, operational
issues (exploration, production, pricing, marketing and
transportation), extensive controls and regulations imposed by
various levels of government, lack of capital or income, the ability
to drill productive wells at acceptable costs, the uncertainty of
drilling operations, factors such as delays, accidents, adverse
weather conditions, and the availability of drilling rigs and the
delivery of equipment. 
Tethys 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
This press release contains "forward-looking information" which may
include, but is not limited to, statements with respect to the
completion of the FOA and our operations, prospective resources and
exploration targets. Such forward-looking statements reflect our
current views with respect to future events and are subject to
certain assumptions, including receipt of required approvals and a
satisfaction of applicable conditions for the completion of the FOA,
the fact that the Joint Operating Company will be successful in
confirming the existence of the accumulations of petroleum in respect
of its exploration targets, and subject to certain risks and
uncertainties, including the risk that approvals for completion of
the FOA may be delayed, the risk that limited discoveries will result
from exploration wells and as a result the risk that any or all of
the prospective resources will not become recoverable, as further
explained above in this press release. 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. The "forward looking statements" contained herein speak
only as of the date of this press release and, unless required by
applicable law, the Company undertakes no obligation to publicly
update or revise such information, whether as a result of new
information, future events or otherwise. 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. The use of the word "Gross" means 100% of the PSC. 
North America
Tethys Petroleum Limited
Sabin Rossi, - All Investor Queries
Vice President Investor Relations
Office: +1 416-941-1257
+1 416-947-0167 (FAX) 
Tethys Petroleum Limited
Veronica Seymour, - All Media Queries
Vice President Corporate Communications
Office: +44 1481 725911
+44 1481 725922 (FAX) 
Corporate Brokers:
FirstEnergy Capital LLP.
Hugh Sanderson / David Van Erp
+44 207 448 0200 
Seymour Pierce
Richard Redmayne / Jonathan Wright / Stewart Dickson
Office: +44 207 107 8000 
Asia Pacific: Quam IR
Anita Wan
Office phone/fax: +852 2217 2999 
FTI Consulting - London
Ben Brewerton / Edward Westropp
Office: +44 207 831 3113 
Tethys Petroleum Limited
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