GRAND CAYMAN, CAYMAN ISLANDS -- (Marketwire) -- 05/15/12 -- Tethys Petroleum Limited ("Tethys" or "the Company") (TSX: TPL)(LSE: TPL) today announced its first quarter 2012 financial results. The results are underlined by a 45% increase in revenues over the first quarter of last year.

The Company reports financial results in accordance with International Financial Reporting Standards ("IFRS").

RECENT HIGHLIGHTS

--  Q1 2012 Total Revenue was USD$6.49 million (Q1 2011: USD$4.48 million)
--  Q1 2012 average oil and gas production was 5,117 barrels of oil
    equivalent per day (Q1 2011: 4,531 barrels of oil equivalent per day)
--  Q1 2012 average oil production from the Doris field in Kazakhstan was
    1,038 barrels of oil per day (Q1 2011; 337 barrels of oil per day)
--  Q1 2012 average gas production was 566 Mcm/d (Q1 2011: 511 Mcm/d)

The full Q1 Results together with a Management Discussion & Analysis have been filed with the Canadian securities regulatory authorities. Copies of the filed documents may be obtained via SEDAR at www.sedar.com or on Tethys' website at www.tethyspetroleum.com. The summary financial statements are attached to this press release.

The above highlights along with other operational and financial details will be further discussed in a scheduled conference call. Details of the conference call can be found below:

Conference Call:

A conference call will be held at 8:00 AM Eastern Standard Time 1:00 PM British Summer Time on Wednesday, May 16, 2012. The North American conference call number is 800-261-3417 and the outside North America conference call number is +1 617-614-3673. The conference call code to use is 26577200 . Please call in about 10 minutes before the starting time in order to be patched into the call.

Webcast:

The call is being webcast and can be accessed at:

http://phoenix.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=213714&eventID=4773558

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. 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.

Tethys Petroleum Limited
Condensed Consolidated Statement of Financial
 Position
(Unaudited)
(in US Dollars)
                                                              As at
                                                        March      December
                                                          31,           31,
                                                         2012          2011
                                                        $'000         $'000
Non-current assets
Property, plant and equipment                         125,994       128,918
Intangible assets                                     100,914        99,959
Restricted cash                                         1,408         1,407
Prepayments and other receivables                       9,793        10,217
Investment in jointly controlled entity                 1,116         1,113
                                                     ---------   -----------
                                                      239,225       241,614
                                                     ---------   -----------
Current assets
Inventories                                             2,073         2,025
Trade and other receivables                             5,844         5,478
Loan receivable from jointly controlled entity          2,000         2,013
Cash and cash equivalents                               4,180        10,746
Restricted cash                                           623           885
Derivative financial instruments - interest rate swap       -           630
                                                     ---------   -----------
                                                       14,720        21,777
                                                     ---------   -----------

Total assets                                          253,945       263,391
                                                     ---------   -----------
                                                     ---------   -----------

Equity attributable to shareholders
Share capital                                          28,671        28,669
Share premium                                         306,725       306,725
Other reserves                                         39,172        38,530
Accumulated deficit                                  (151,710)     (144,962)
Non-controlling interest                                8,818         8,918
                                                     ---------   -----------
Total equity                                          231,676       237,880
                                                     ---------   -----------

Non-current liabilities
Financial liabilities - borrowings                      2,819         1,632
Deferred taxation                                       2,107         2,111
Trade and other payables                                  500           547
Asset retirement obligations                              230           386
                                                     ---------   -----------
                                                        5,656         4,676
                                                     ---------   -----------
Current liabilities
Financial liabilities - borrowings                      6,025         8,396
Derivative financial instruments - warrants             1,348           264
Derivative financial instruments - foreign currency
 hedge                                                      8           157
Deferred revenue                                        1,330         1,839
Trade and other payables                                7,758        10,179
Current tax                                               144             -
                                                     ---------   -----------
                                                       16,613        20,835
                                                     ---------   -----------

                                                     ---------   -----------
Total liabilities                                      22,269        25,511
                                                     ---------   -----------

Total shareholders' equity and liabilities            253,945       263,391
                                                     ---------   -----------
                                                     ---------   -----------



Tethys Petroleum Limited
Condensed Consolidated Statement of Comprehensive
 Income
(Unaudited)
For the three months ended March 31, 2012
(in US Dollars)

                                                      2012             2011
                                                     $'000            $'000
                                                               re-presented
Sales and other revenues                             6,487            4,480
                                                   -------------------------
Total revenue and other income                       6,487            4,480

Production expenses                                 (2,910)          (1,752)
Depreciation, depletion and amortisation            (3,036)          (2,612)
Listing expenses                                         -               (6)
Business development expenses                         (184)             (20)
Administrative expenses                             (4,986)          (5,271)
Share based payments                                  (603)          (1,193)
Foreign exchange (loss)/gain- net                      (64)             200
Fair value loss on derivative financial instrument    (896)              (8)
Loss from jointly controlled entity                    (62)            (209)
Net finance costs                                     (454)              (7)

                                                   -------------------------
Loss before taxation                                (6,708)          (6,398)

Taxation                                              (140)             103

                                                   -------------------------
Loss for the period                                 (6,848)          (6,295)
                                                   -------------------------
                                                   -------------------------

Loss attributable to:
Shareholders                                        (6,748)          (6,295)
Non-controlling interest                              (100)               -
                                                   -------------------------
Loss for the period                                 (6,848)          (6,295)
                                                   -------------------------
                                                   -------------------------

Basic and diluted                                    (0.02)           (0.02)


Tethys Petroleum Limited
Condensed Consolidated Statement of Cash Flows
(Unaudited)
For the three months ended March 31, 2012
(in US dollars)

                                                            2012       2011
                                                           $'000      $'000
Cash flow from operating activities
Loss before taxation for the period                       (6,708)    (6,398)
Adjustments for
  Share based payments                                       603      1,193
  Net finance cost                                           454          7
  Depreciation, depletion and amortization                 3,036      2,612
  Fair value loss on derivative financial instrument         896          8
  Net unrealised foreign exchange loss                        35         43
  Loss from jointly controlled entity                         62        209
  Deferred revenue                                          (509)    (2,422)
  Net change in non-cash working capital                  (1,562)      (322)
                                                         -------------------
Net cash (used) from operating activities                 (3,693)    (5,070)
                                                         -------------------

Cash flow from investing activities
Interest received                                             88         32
Expenditure on exploration and evaluation assets            (995)    (1,866)
Expenditures on property, plant and equipment               (214)    (8,986)
Investment in restricted cash                                261         (2)
Investment in jointly controlled entity                       (3)         -
Payments made on behalf of jointly controlled entity           -     (2,878)
Movement in advances to construction contractors             367     (1,827)
Value added tax receivable                                    57       (905)
Net change in non-cash working capital                    (1,279)       (52)
                                                         -------------------
Net cash (used) from investing activities                 (1,718)   (16,484)
                                                         -------------------

Cash flow from financing activities
Proceeds from issuance of short-term borrowings, net of
 issue costs                                               3,520          -
Proceeds from issuance of long-term borrowings, net of
 issue costs                                               2,306          -
Repayment of long-term borrowings                           (156)       (86)
Repayment of short-term borrowings                        (6,459)         -
Interest paid on long-term borrowings and other non-
 current payables                                           (204)      (100)
Other non-current liabilities                                (74)       (76)
                                                         -------------------
Net cash (used) from financing activities                 (1,067)      (262)
                                                         -------------------

Effects of exchange rate changes on cash and cash
 equivalents                                                 (88)        81
Net decrease in cash and cash equivalents                 (6,566)   (21,735)
Cash and cash equivalents at beginning of the period      10,746     79,135
                                                         -------------------
Cash and cash equivalents at end of the period             4,180     57,400
                                                         -------------------