Q4 201410 February 2015

Q4 Highlights

• Record net sales of MSEK 310, up 5% compared to Q3-14

• EBITDA of MSEK 200, down 14% compared to Q3-14 due to timing related opex effects

• Net result negatively affected by a MSEK 127 write down related to Lithuanian producing asset Gargzdai

• Net result MSEK 18, down 89% compared to Q3-14

• Earnings per share SEK 0.51 for Q4-14

• Net cash position of MSEK 347

• Production and reserves:

– New production record in December 2014: 8,438 BOPD

– New third party reserve report as at 31 Dec 2014

• 1P reserves 11.8 mmbo (10.8 mmbo 31 Dec 2013)

• 2P reserves 17.8 mmbo (15.2 mmbo 31 Dec 2013)

• 3P reserves 25.1 mmbo (20.0 mmbo 31 Dec 2013)

– Internal reserve replacement ratio of 193%

2

Tethys’ assets

Producing

Assets

Country Licence Area,

km2

Tethys

share

Partners* 2P reserves

31 Dec 2014

(mmbo)

Production

Q4 2014

(bopd)

Oman Block 3 & 4 34,610 30% CC Energy, Mitsui 17.8 8,236

Lithuania Gargzdai 884 25% Odin Energi,

Geonafta

** 114

Exploration

assets

Oman Block 3 & 4 34,610 30% CC Energy, Mitsui

Oman Block 15 1,389 Discussions concerning the

future of Block 15 are ongoing

Lithuania Rietavas 1,594 30% Odin Energi, Private

investors

Lithuania Raseiniai 1,535 30% Odin Energi, Private

investors

France Attila 1,986 40% Galli Coz

France Alès 215 37.5% Private investors

* Operator in bold

** Lithuanian reserves deemed sub-economic

3

Reserves Oman

(31 Dec 2014, mmbo)

mmbo 1P 2P 3P

Farha South 8.3 11.2 13.3

Saiwan East 0.5 1.3 2.9

Lower Buah area 3.0 5.3 8.9

Total 11.8 17.8 25.1

Reserves

Independent petroleum consultant DeGolyer and MacNaughton

(“D&M”) reviews Tethys Oil’s reserves in Oman annually.

4

Development of reserves

mmbo 1P 2P 3P

Total 31 Dec 2013 10.8 15.2 20.0

Production 2014 -2.8 -2.8 -2.8

Revisions 2.5 3.2 4.5

Discoveries 1.3 2.1 3.4

Total 31 Dec 2014 11.8 17.8 25.1

• Production record in December 2014 with 8,438 bopd

• Production in November affected by maintenance/construction work

Average daily production in Oman

5

8 425

7 832

8 438

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

Octo

be

r

No

ve

mbe

r

De

ce

mbe

r

Janu

ari

Feb

ruary

Ma

rch

April

Ma

y

June

July

Augu

st

Septe

mb

er

Octo

be

r

No

ve

mbe

r

De

ce

mbe

r

Q4-13 Q1-14 Q2-14 Q3-14 Q4-14

6

• Total production in Q4 2014 inline with previous quarter

• 53% increase in average daily production compared with Q4-13

Production

BarrelsBarrels

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

0

500 000

1 000 000

1 500 000

2 000 000

2 500 000

3 000 000

2012 2013 2014

Total production Ave daily production

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

900 000

Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014

Total production Ave daily production

BOPD BOPD

• Record sales volumes in Q4-14 and in full year 2014

• Underlift position of 27,188 bbl changed to overlift of 12,828 bbl from

Q3-14 to Q4-14

BarrelsBarrels

7

Sold barrels

776 248850 926

1 464 228

0

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

1 600 000

2012 2013 2014

Sold volumes

271 175 280 782

350 059

399 352

434 035

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

450 000

500 000

Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014

Sold volumes

• Net oil sales of MSEK 310 in Q4-14, up 5% compared to Q3-14

• The Q-o-Q sales increase is composed of 9% increase in barrels sold,

8% USD/SEK change and 10% oil price decrease

MSEK MSEK

8

Sales MSEK

0

200

400

600

800

1 000

1 200

2012 2013 2014

Sales of oil and gas

193 195

245

296310

0

50

100

150

200

250

300

350

Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014

Sales of oil and gas

Average selling price per barrel

• Selling price down only 10% due to 2 months lag in future price

mechanism

USD/bblUSD/bbl

9

110,4

106,6

103,9

100,0

105,0

110,0

115,0

2012 2013 2014

Ave selling price

108,5

106,6105,9

107,6

97,1

90,0

95,0

100,0

105,0

110,0

Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014

Ave selling price

EBITDA

• EBITDA of MSEK 200 in Q4, down 14% compared to Q3-14

• Q4 EBITDA lower following higher OPEX due to timing related opex effects

and lower oil price

• EBITDA margin the last five quarters has been in the range 65%-78%10

MSEK MSEK

509479

753

0

100

200

300

400

500

600

700

800

2012 2013 2014EBITDA

148

130

192

232

200

77%

67%

78% 78%

65%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0

50

100

150

200

250

Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014

EBITDA EBITDA Margin

Expenses

• Operating OPEX increased from MSEK 57 in Q3-14 toMSEK 102 in Q4-14

• Increase in OPEX is due to:

– a reservation made for expected but not yet billed OPEX

– overlift adjustment

MSEKMSEK

11

96

152

264

28

31

31

0

50

100

150

200

250

300

350

2012 2013 2014

Operating expenses Administrative expenses

37

5946

57

102

8

6

8

8

8

0

20

40

60

80

100

120

Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014

Operating expenses Administrative expenses

Adjusted net back* and opex per barrel

12* After current government take

** The Q4-14 number is estimated

• Adjusted for timing differences, net back has fallen from range

USD 40-45 per barrel to USD 36 due to lower oil prices

• Adjusted opex between USD 11 and 15 per barrel, of which direct

lifting cost accounts for 50-60%

USD/bblUSD/bbl

11,9 14,1 12,69

45,5 41,3 41,3

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

2012 2013 2014

Opex/bbl (USD/bbl) Netback (USD/bbl)*

14,511,0 11,9 12,5 14,9

41,944,4 43,2 43,4 35,6

0,0

10,0

20,0

30,0

40,0

50,0

60,0

Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014**

Opex/bbl (USD/bbl) Netback (USD/bbl)*

Net result after tax

• Result is down 89% Q-o-Q to MSEK 18

• Result was negatively affected

– by a non cash MSEK 127 write down related to Lithuanian producing

asset Gargzdai

– Higher OPEX in relation to sales13

MSEK MSEK

45

58

107

167

18

0

20

40

60

80

100

120

140

160

180

Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014

Result for the period

314

240

350

0

50

100

150

200

250

300

350

400

2012 2013 2014

Result for the period

Balance Sheet Q4 2014

• Strong cash position of MSEK 372

• The MUSD 100 senior revolving reserve based lending facility is not

used by the end of the fourth quarter

• Almost all cash held in USD – close to MUSD 50

• Share buy back programme launched in Q4-14, 298,160 shares re-

purchased

• Exchange rate as per balance sheet day: 7.77 SEK per USD.

14

(MSEK) 2014-12-31 2014-09-30 2013-12-31

Cash 372 194 295

Long term liabilities 25* 33* 422

Net cash 347 161 -127

Total assets 1,816 1,619 1,563

Shareholders’ equity 1,675 1,547 1,100

* Provision for site restoration costs

• Majority of investments were development, appraisal and exploration of Blocks 3&4

• Actual investments in Blocks 3 and 4 during 2014 amounted to MUSD 38 (MSEK 263) compared to original investment budget of MUSD 60 (MSEK 400):

– some infrastructure investments have been pushed forward

– fewer wells due to changes to the drilling programme following new data

15

MSEK MSEK

Oil and gas investments

73

45

79

44

101

0

20

40

60

80

100

120

Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014

Oil and Gas Investments

493

290259

0

200

400

600

2012* 2013 2014

Oil and Gas Investments

* Adjusted investments

Wells in Oman

• 4 wells drilled in Q4 2014, including, 2 appraisal wells,

1 water injector well and one far field exploration well

16

10

15

12

8

4

0

2

4

6

8

10

12

14

16

Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014

Wells drilled

3735

39

0

5

10

15

20

25

30

35

40

45

2012 2013 2014

Wells drilled

Block 3 and 4 overview

17

Farha South field

18

Producing Fault Blocks at Farha South

19

Lower Buah area

Production from 3

reservoire layers:

• Lower Buah

• Lower al Bashir

• Khufai

Producing areas

Prospects /

prospective areas

20

Outlook

• Water injection launched in Lower Buah area

• New leads in the Lower Buah area continue to be identified

• Drilling focus on Lower Buah area – at least one rig committed all

year

• Seismic studies in other parts of the Blocks will continue

• Three wells are planned on Raiseiniai license in Lithuania in Q2

Q4 201410 February 2015

Important notice

This presentation and the information contained herein is being presented by Tethys Oil AB (publ) (the “Company”). By attending a meeting where this

presentation is presented, or by reading this presentation, you agree to be bound by the following limitations and notifications.

This presentation does not constitute an offer or invitation to purchase or subscribe for any securities and does not constitute any form of commitment or

recommendation on the part of the Company.

This presentation does not purport to be all-inclusive or to contain all the information that prospective investors may desire in analysing and deciding

whether or not to hold or transact in the Company’s shares.

Recipients of this presentation must rely on their own examination of the legal, taxation, financial and other consequences of any possible holding or

transaction involving the Company’s shares or other securities, including the merits and risks involved. Recipients should not treat the contents of this

presentation as advice relating to legal, taxation or other matters and are advised to consult their own professional advisors concerning the acquisition,

holding or disposal of shares or other securities in the Company.

Certain information contained in this presentation has been obtained from published sources prepared by other parties that the Company has deemed to be

relevant. However, neither the Company nor any other person assumes any responsibility whatsoever and makes no representation or warranty, express

or implied, for the contents of this presentation, including its accuracy, completeness or verification for any other statement made or purported to be made

by any of them, or on their behalf. Nothing in this presentation is, or shall be relied upon as, a representation or promise made, whether as to the past,

present or future. Accordingly, no responsibility is accepted by the Company, its subsidiaries or associates or any of their directors, officers, employees or

agents, in respect thereof.

This presentation contains forward-looking statements that reflect the Company’s current views with respect to certain future events and potential financial

performance. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be

given that such expectations will materialise. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of

various factors. To the extent that this presentation contains opinions, estimates, forecasts or other forward looking statements, no guarantees or

undertakings that these are correct or complete are given by the Company or any of its members, advisors, officers or employees or any other person.

Forecasts and assumptions which are subject to economic and competitive uncertainty are outside such person’s control and no guarantee can be given

that projected results will be achieved or that outcomes will correspond with forecasts. Information in this presentation may be changed, added to or

corrected without advance notification. The Company does not undertake any obligation to publicly update or revise any information contained herein.

This presentation as well as any other information provided by or on behalf of the Company shall be governed by Swedish law. Any dispute, controversy or

claim arising out of or in connection with such information or related matters shall be finally settled by arbitration in accordance with the Arbitration Rules of

the Arbitration Institute of the Stockholm Chamber of Commerce. The place of arbitration shall be Stockholm and the language to be used in the arbitration

proceedings shall be English.

IMPORTANT NOTICE

22