The full field dynamic reservoir model for the North Urtabulak field is now complete and indicates that additional oil can be recovered from the field with a reconfiguration of the water injection scheme and additional drilling. In light of this, work is underway to reconfigure the water injectors to give better reservoir pressure maintenance.

An initial five-well radial side-track drilling program will commence in September with four planned lateral wells per wellbore. This is the first time that radial drilling has been applied in Uzbekistan and based on international experience should yield good production increases.

A further horizontal sidetrack of an existing well (NUR96) is also planned to target an area with known good permeability and porosity in an area of the reservoir shown, by the reservoir model, to be relatively un-drained.

Well NUR96 was originally drilled in June 2006 and tested initially at rates up to 2,056 barrels of oil per day despite having stuck pipe in the hole. However casing had been set too high and eventually high pressure salt caused the casing to collapse and effectively close off production.

The horizontal sidetrack planned by Tethys will re-drill the reservoir section close to the previous wellbore with the benefit of data from the original hole. Drilling operations are expected to commence in late September 2010.

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.