Tethys Petroleum Limited: New Oil Field Acquired

Tethys Petroleum (TSX:TPL)(LSE:TPL) today announced Chegara Production Limited
("CPL"), its 100% owned subsidiary, has signed a Production Enhancement Contract
("PEC") for a new oil field, the Chegara Group of Fields ("Chegara"), in
Uzbekistan. In addition Tethys announced it had signed a Memorandum of
Understanding ("MOU"), which agrees a timetable for the potential signing of an
Exploration Agreement for a highly prospective Exploration block.


Key Points:



--  New 25-year Production Enhancement Contract on oil field  
    
--  Existing producing oil wells 
    
--  Significant upside in undrilled areas - additional geophysical data to
    be acquired 
    
--  MOU for potential Exploration Agreement on an exploration block in North
    Ustyurt Basin 



Dr David Robson, Chairman, President and Chief Executive Officer of Tethys, added:

"We are delighted that we have been awarded this new oil field in Uzbekistan. I
would like to thank our partners, Uzbekneftegaz, Uzneftegazdobycha and
Uznefteproduct, for their support and hard work in negotiating this new
contract. We believe the Chegara Group of Fields has good potential through
increasing production in existing wells and also large upside in undrilled
areas. It has only had minimal, initial drilling work carried out on it and we
believe with additional geophysical data we will be able to develop this field
more efficiently and increase production substantially. In addition the newly
signed MOU now sets out a clear timetable to potentially signing an exploration
agreement for a block in the Ustyurt basin which we believe has very similar
geological characteristics to the Akkulka block where we have our Doris oil
discovery." 


The Chegara Group is an underdeveloped group of fields located 14 kilometers
south-west of the existing Tethys asset of North Urtabulak, and contiguous to
the prolific Urtabulak gas condensate Field, within the world-class Amu Darya
Basin. The reservoirs comprise Upper Jurassic age carbonates at an approximate
depth of 2,650 meters, trapped below a regionally prevalent salt and anhydrite
seal. The oil is of moderate gravity and at present there are 3 producing wells
all flowing naturally under reservoir pressure. This currently has limited
existing oil production, and will form the baseline production under the new
Chegara PEC with Uzbekneftegaz. Tethys believes there is substantial additional
production potential in the field.


Tethys has collected and interpreted a significant volume of historic seismic,
drilling, geological and production data relating to the Chegara Group of
fields, and plans to initially work over the existing well stock using
technologies and techniques that have been successfully implemented to increase
production on the North Urtabulak Field over the previous 12 years under a very
similar contractual arrangement. Furthermore, it is intended that additional
geophysical data will be acquired on the field to identify undrilled areas that
provide high potential upside. Currently there are only State reserves assigned
to the field and no figures yet under NI 51-101 reporting procedures.


The contract will become effective following standard regulatory approvals,
which include the issuance of a Presidential Decree and the completion of a
Feasibility Study. The PEC has a term of twenty-five (25) years and under the
new PEC CPL is allocated refined products for the crude oil it produces and
sells these outside Uzbekistan. Furthermore Tethys has been granted exclusive
rights to carry out operations with liquid hydrocarbons on Chegara. 


The MOU signed with NHC Uzbekneftegaz sets out a fixed timetable to potentially
sign an Exploration Agreement for a large Exploration block in the North Usyturt
basin in Uzbekistan. TPL will submit a proposal for an exploration program for
the block by the end of June 2012. After approval by NHC Uzbekneftegaz and the
Government of the Republic of Uzbekistan an Exploration Agreement will be
negotiated.


Notes to Editors

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 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 (which are incorporated herein by reference). 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.