Tethys Petroleum Announces Corporate Update

Regulatory Update - Tethys received all ecological and environmental approvals for 2024 on November 18, 2024, and the 2025 ecological permit on December 9, 2024, allowing production of up to 490 tons/day under Contract No 1897 for the Kul Bas field until July 26, 2026 [2] - On January 8, 2025, Kul-Bas LLP submitted an application to transition Contract No 1897 to the Production Period, which would extend production until July 2048 and allow hydrocarbon exports, with a decision expected by February 5, 2025 [3] Operations Update - Oil production is constrained by limitations on associated gas flaring, prompting Tethys to convert gas to electricity to limit emissions [4] - The Central Processing Facility (CPF) at Kul Bas was commissioned on November 19, 2024, and the Gas Utilization Facilities (GUF) on January 17, 2025, marking the completion of Phase 1 work [4] - Phase 1 focused on handling associated gas from the first 3 wells (KBD-2, KBD-6, KBD-7), with plans for a Phase 2 program to increase oil production and bring on additional wells (KBD-3, KBD-4, KBD-8) [4] - Logistics, handled by oil buyers, can limit production due to factors like trucking, rail capacity, and weather conditions, with Tethys currently selling oil primarily to mini-refineries at higher prices [5] - A prohibition on naphtha exports in Kazakhstan has negatively impacted mini-refineries and reduced the price Tethys receives for oil compared to export prices [5] Company Strategy - Tethys remains committed to responsible growth, optimizing operations while meeting regulatory requirements [6] - The company focuses on oil and gas exploration and production in Central Asia and the Caspian Region [7]