Q4 20159 February 2016

Q4 Highlights

• Production increase continues: new production record with

10,956 BOPD in Q4-15 – up 9% compared to Q3-15

• Revenue of MSEK 222, down 13% compared to Q3-15

• EBITDA of MSEK 113, down 26% compared to Q3-15

• Net result MSEK 27, down 65% compared to Q3-15

• Earnings per share SEK 0.78 for Q4-15

• Net cash of MSEK 436, down 10% compared to Q3-15

• SEK 1.00 per share dividend proposed

• 7 wells drilled on Block 3 and 4 in Oman

• New reservoir layer boosts production

• Long term production testing of Lithuanian well continues

2

Tethys’ assets

Producing

Assets

Country Licence Area,

km2

Tethys

share

Partners* 2P reserves

31 Dec 2014

(mmbo) **

Production

Q3 2015

(bopd)

Oman Block 3 & 4 34,610 30% CC Energy, Mitsui 18.2 10,847

Lithuania Gargzdai 884 25% Odin Energi,

Geonafta

- 109

Exploration

assets

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

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

** Reserves in Oman audited by DeGolyer and MacNaughton

3

• New layer boosts production – 12,630 bopd in January 2016

• Production expected to continue to increase in 2016

with month on month volatility

Average daily production in Oman

4

11 606

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

Octo

be

r

No

ve

mbe

r

De

ce

mbe

r

Janu

ary

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

Q4-14 Q1-15 Q2-15 Q3-15 Q4-15

Reserves Block 3&4 Oman

(31 Dec 2015, mmbo)

mmbo 1P 2P 3P

Farha South 7.6 10.2 12.7

Shahd 4.9 6.8 12.0

Saiwan East 0.4 1.2 3.2

Total 12,9 18.2 27.9

Independent petroleum consultant DeGolyer and MacNaughton

Canada Limited (“DMCL”) reviews Tethys Oil’s reserves in Oman

annually.

5

Development of reserves

mmbo 1P 2P 3P

Total 31 Dec 2014 11.8 17.8 25.1

Production 2015 -3.5 -3.5 -3.5

Revisions 4.7 4.0 6.3

Total 31 Dec 2015 12.9 18.2 27.9

Reserves, December 31, 2015

• Blocks 3 and 4 investments for 2016 will be closely monitored and subject to

on-going revisions. The target is to fund investments on Blocks 3 and 4

primarily from cash flow from operations

• During the financial year 2016, the cash flow from operations amounted to

MSEK 503 and investments in oil and gas amounted to MSEK 324

• Including the dividend received from Lithuanian assets, the cash flow

from operations after investments in the financial year 2015 amounted

to MSEK 179

• Lithuania operations are expected to be financed from oil production and

available cash in the associated Lithuanian companies

6

Cash flow

7

• Average daily production in Q4 2015 increased 9% compared with

Q3-15

• 31% increase in average daily production compared with Q4-14

ProductionBarrelsBarrels BOPD BOPD

0

2 000

4 000

6 000

8 000

10 000

12 000

0

500 000

1 000 000

1 500 000

2 000 000

2 500 000

3 000 000

3 500 000

4 000 000

2013 2014 2015

Total production Ave daily production

768 226

784 207

858 453

928 047

1 007 782

0

2 000

4 000

6 000

8 000

10 000

12 000

0

200 000

400 000

600 000

800 000

1 000 000

1 200 000

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Total production Ave daily production

• Q4-15 revenue is down 13% compared to Q3-15 revenue due to

decline in oil prices

• Accounting principles have been changed to better align revenue with

production development

MSEK MSEK

8

Revenues MSEK

602

1 027

905

0

200

400

600

800

1 000

1 200

2013 2014 2015

Revenue

281

205223

255

222

0

50

100

150

200

250

300

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Revenue

Sold barrels

• Significant anticipated reduction in overlift in Q4 2015 (increase in

overlift in Q2 and Q3 2015)

• The total underlift position as per 31 December 2015 is 22,725 barrels

9

BarrelsBarrels

850 926

1 464 228

1 805 056

0

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

1 600 000

1 800 000

2 000 000

2013 2014 2015

Sold volumes

434 035

308 892

545 019584 399

366 746

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Sold volumes

Average achieved selling price per barrel

• Average achieved selling price down 22% compared with Q3-15

• 2 months lag in future price

USD/bbl

10

106,6 103,9

58,1

40,0

50,0

60,0

70,0

80,0

90,0

100,0

110,0

2013 2014 2015

Ave selling price

97,1

63,8

57,8

61,8

47,9

40,0

50,0

60,0

70,0

80,0

90,0

100,0

110,0

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Ave selling price

USD/bbl

EBITDA

• EBITDA of MSEK 105 in Q4-15, down 26% compared with Q3-15

• Lower EBITDA and EBITDA margin following lower oil prices

11

MSEK MSEK %

488

743

496

0

100

200

300

400

500

600

700

800

2013 2014 2015

EBITDA

181

99

130

153

113

64%

48%

58%60%

51%

0%

10%

20%

30%

40%

50%

60%

70%

0

20

40

60

80

100

120

140

160

180

200

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

EBITDA EBITDA Margin

Expenses

• Increase in OPEX is in line with the increased levels of production

MSEKMSEK

12

92 92

74

94102

8 9

18

7

10

0

20

40

60

80

100

120

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Operating expenses Administrative expenses

153

255

36231

31

44

0

50

100

150

200

250

300

350

400

450

2013 2014 2015

Administrative expenses

Operating expenses

Opex and Net back per barrel (USD/bbl)

13* After current government take

• OPEX per barrel is decreasing with higher production

• Costs starting to come down following lower oil prices

• Opex between USD 10.3 and 14.3 per barrel during 2015,

of which direct lifting cost accounts for 50-60%

USD/bblUSD/bbl

14,1 13,4 12,1

41,3 40,6

18,1

0,0

10,0

20,0

30,0

40,0

50,0

60,0

2013 2014 2015

Operating expenses Net back

16,9 14,310,3 12,1 11,9

33,6

18,819,7

20,013,0

0

10

20

30

40

50

60

Q4 2013 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Operating expenses Net back

Net result after tax

• Net result decrease by 65% Q-o-Q explained mainly by lower

oil prices

14

MSEK MSEK

249

340

198

0

50

100

150

200

250

300

350

400

2013 2014 2015

-1

63

30

78

27

-10

0

10

20

30

40

50

60

70

80

90

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Balance Sheet Q4 2015

• Strong net cash position of MSEK 436

• Net cash affected by movement of over 150,000 barrels from overlift

to underlift in Q4-15

• MSEK 106 distributed to shareholders (dividend SEK 1 per share)

and share redemption SEK 2 per share), the share repurchase

programme added MSEK 42 to the distribution of capital to

shareholders.

• A large part of cash and cash equivalents are held in USD which has

appreciated against SEK during the full year 2015

• Exchange rate as per balance sheet day: 8.51 SEK per USD.

15

(MSEK) 2015-12-31 2015-09-30 2014-12-31

Net cash 436 485 372

Total assets 2,165 2,142 1,816

Shareholders’

equity1,864 1,838 1,675

• Tethys’ investments in Blocks 3 and 4 amounted to MSEK 79 in Q4

16

MSEK MSEK

Oil and gas investments

* Adjusted investments

290

259

324

0

100

200

300

400

2013 2014 2015

2013 2014 2015

101

131

50

8579

0

20

40

60

80

100

120

140

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Oil and Gas Investments

Wells in Oman

• 7 wells drilled in Q3 2015, all on Shahd oil field

• Five rigs in operation, including one work over rig

17

35

39 40

0

5

10

15

20

25

30

35

40

45

2013 2014 2015

Wells drilled

4

11

9

13

7

0

2

4

6

8

10

12

14

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Wells drilled

Block 3 and 4 overview

18

Farha South field, 31 December 2015

19

20

Shahd Oil field

Producing areas

Prospects /

prospective areas

New reservoir - Lower Khufai

Carbonates - successfully

brought on stream

The water injection

programme in the Buah layer

showing signs of working

• Barik, Khufai, Lower Buah and Lower Al Bashir currently

producing

Block 3 and 4, Oman - Stratigraphy

21

22

Block 3 & 4

Producing Reservoirs

Barik - Farha South

Lower Al Bashair – Farha South & Shahd

Lower Buah - Shahd

Khufai – Shahd & Saiwan east

ــــــــــــــــــــــــــــــــــــــــــــــــــCarbonate Clastic

Stratigraphic Column with producing reservoirs

23

Conclusion• Tethys Oil continues to yield positive financial results:

– Revenues MSEK 222

– EBITDA MSEK 113

– Net result MSEK 27

• Tethys will be able to continue to generate a positive gross

profit also at prices below 30 dollars per barrel

• New reservoir - Lower Khufai Carbonate - brought in production

• The water injection programme in the Buah reservoir layer

continues following initial encouragement

• Production expected to continue to increase in 2016, however

with monthly fluctuations

Q1 2016Will be published 3 May 2016!

Important notice

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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

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

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

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

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

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proceedings shall be English.

IMPORTANT NOTICE

25