Q3 20153 November 2015

Q3 Highlights

• Production increase continues: new production record with

10,087 BOPD in Q3-15 – up 7% compared to Q2-15

• Net sales of MSEK 307, up 16% compared to Q2-15

• EBITDA of MSEK 153, in line with Q2-15

• Net result MSEK 70, up 32% compared to Q2-15

• Earnings per share SEK 2.00 for Q3-15

• Net cash of MSEK 485, up 50% compared to Q2-15

• 13 wells drilled on Block 3 and 4 in Oman

• Successful drilling programme in Lithuanian

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 17.8 9,983

Lithuania Gargzdai 884 25% Odin Energi,

Geonafta

- 104

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 production milestone in July 2015

– Production in excess 10,000 bopd

• Production increase continues with month on month volatility

Average daily production in Oman

4

0

2 000

4 000

6 000

8 000

10 000

12 000

July

Augu

st

Septe

mb

er

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

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

• Tethys Oil’s operations continue to yield positive cash flow also at current oil

prices

• Blocks 3 and 4 investments expected to continue to be covered from cash

flow from operations

• During the nine month period 2015, the cash flow from operations amounted

to MSEK 480 and investments in oil and gas amounted to MSEK 269

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

operations after investments during nine months amounted to MSEK 235

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

available cash in the associated Lithuanian companies

5

Cash flow

6

• Average daily production in Q3 2015 increased 7% compared with

Q2-15

• 20% increase in average daily production compared with Q3-14

ProductionBarrelsBarrels

1 399 518

1 709 706

2 804 239

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

BOPD BOPD

772 722

768 226784 207

858 453928 047

0

2 000

4 000

6 000

8 000

10 000

12 000

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

900 000

1 000 000

Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015

Total production Ave daily production

• Second consecutive quarter with about 100,000 barrels in overlift

(from overlift of 22,647 barrels to 129,439 barrels in Q3-15)

• Overlift position expected to be significantly reduced in fourth quarter

2015

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

399 352434 035

308 892

545 019

584 399

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015

Sold volumes

• Net oil sales of MSEK 307 in Q3-15, up 16% compared to Q2-15

• The main driver behind the net sales increase was increase in production

and strengthening of the oil price

• Movement of over 100,000 barrels in overlift position

MSEK MSEK

8

Sales MSEK

584 592

1 046

0

200

400

600

800

1 000

1 200

2012 2013 2014

Sales of oil and gas

296310

163

265

307

0

50

100

150

200

250

300

350

Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015

Sales of oil and gas

Average selling price per barrel

• First quarter since Q3-14 with increasing average selling price per

barrel, up 7% compared with Q2-15

• 2 months lag in future price mechanism – lower selling prices so far in

Q4-15

USD/bblUSD/bbl

9

110,4

106,6

103,9

100,0

105,0

110,0

115,0

2012 2013 2014

Ave selling price

107,6

97,1

63,8

57,8

61,8

50,0

60,0

70,0

80,0

90,0

100,0

110,0

Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015

Ave selling price

EBITDA

• EBITDA of MSEK 153 in Q3-15, in line with Q2-15

• Lower EBITDA margin due to increase in OPEX with MSEK 52

due to overlift

10

MSEK MSEK

509479

753

0

100

200

300

400

500

600

700

800

2012 2013 2014

EBITDA

232

200

76

153153

78%

65%

46%

58%

50%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0

50

100

150

200

250

Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015

EBITDA EBITDA Margin

Expenses

• OPEX increase of MSEK 52 due following overlift in Q3-15

• Admin expenses normalized compared with Q2

MSEKMSEK

11

96

152

264

28

31

31

0

50

100

150

200

250

300

350

2012 2013 2014

Operating expenses Administrative expenses

57

102

75

93

145

8

8

9

18

7

0

20

40

60

80

100

120

140

160

Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015

Operating expenses Administrative expenses

Adjusted net back* and opex per barrel

12* After current government take

** The Q3-15 number is estimated

• Increased net back after higher oil prices

• Opex between USD 10.7 and 12.1 per barrel during 2015,

of which direct lifting cost accounts for 50-60%

USD/bblUSD/bbl

11,9 14,1 13,0

45,5 41,3 41,0

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)*

12,516,0

11,1 12,1 10,7

43,4 34,5

22,1 18,0 21,4

0,0

10,0

20,0

30,0

40,0

50,0

60,0

Q3 2014 Q4 2014 Q1 2015 Q2 2015 ** Q3 2015

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

Net result after tax

• Net result increase by 32% Q-o-Q explained mainly by higher

oil prices and higher production

13

MSEK MSEK

314

240

350

0

50

100

150

200

250

300

350

400

2012 2013 2014

Result for the period

167

18

39

53

70

0

20

40

60

80

100

120

140

160

180

Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015

Result for the period

Balance Sheet Q3 2015

• Strong net cash position of MSEK 485

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

appreciated against SEK during the nine month 2015

• Exchange rate as per balance sheet day: 8.45 SEK per USD.

14

(MSEK) 2015-09-30 2015-06-30 2014-12-31

Net cash 485 323 372

Total assets 2,142 1,888 1,816

Shareholders’

equity1,838 1,744 1,675

• Tethys’ investments in Blocks 3 and 4 amounted to MSEK 85 in Q3

15

MSEK MSEK

Oil and gas investments

493

290259

0

200

400

600

2012* 2013 2014

Oil and Gas Investments

* Adjusted investments

45

101

131

50

85

0

20

40

60

80

100

120

140

Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015

Oil and Gas Investments

Wells in Oman

• 13 wells drilled in Q2 2015

– 7 wells on Farha South oil field

– 5 wells on Shahd oil field

– 1 exploration well in southern part of Block 4

Four rigs in operation, one more to be added in the end of 2015

16

3735

39

0

5

10

15

20

25

30

35

40

45

2012 2013 2014

Wells drilled

8

4

11

9

13

0

2

4

6

8

10

12

14

Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015

Wells drilled

Block 3 and 4 overview

17

Farha South field, 30 September 2015

18

19

Shahd Oil field

Producing areas

Prospects /

prospective areas

20

Conclusion

• Milestone passed – production in excess of 10,000 BOPD in Q3

2015

• Tethys Oil continues to yield positive financial results:

– Sales MSEK 307 up 16% Q-o-Q

– EBITDA MSEK 153, in line with Q2-15

– Net result MSEK 70, up 32% Q-o-Q

• Continued focus on Farha water injection in Q3-15

• Focus on Shahd water injection in Q4

• Tidikas-1 in Lithuania successfully completed and put in long

term test production

Q4 2015Will be published 9 February 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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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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IMPORTANT NOTICE

22