Tethys Oil SEK91.2m private placement fully subscribed

Accordingly, the Board of Directors of Tethys has agreed to issue new investors 4,800,000 shares with warrants attached at a price of SEK 19 for a total equity injection of SEK91.2m ($16.7m).

The private placement road show to investors in the GCC, Hong Kong and Paris was positively received and the placement was fully subscribed within the proposed timetable. In line with its strategy of promoting shareholder diversity, Tethys has now broadened its shareholder base.

The introduction of investors from the Middle East is also expected to encourage participation in the proposed secondary listing of Tethys shares on the Dubai International Financial Exchange (DIFX), which is subject to regulatory approval of Tethys planned application for secondary listing.

Tethys' primary listing is on the First North exchange in Stockholm,Magnus Nordin, Managing Director of Tethys, said: 'We are elated at the response that we received from investors. This is a strong testimony of investors' perception of the potential of the Company. Our next focus will be to deploy the funds raised to bring our Oman Block 15 assets to production within the next 16 months and begin generating solid revenue.'

The proceeds of the placement will be utilised to accelerate the timetable for the development of the Company's oil and gas concessions in Oman where they expect to move into production in mid-2009. Currently, Tethys is one of the largest oil and gas concession holders in Oman with a combined area of over 34,000 square kilometers.

Tethys has appointed Dubai-based investment bank, MAC Capital Limited, to assist in the application for a secondary listing on the Middle East's premier international financial exchange - the DIFX. MAC Capital was also placement agent on this private placement.

'There are a number of reasons why we are excited at the prospect of listing Tethys' shares on the DIFX. Principally, this means that any investor based in the Middle East can trade the shares through their local brokerage accounts. Tethys will also be the first Oil and Gas Company to list on the DIFX and provides an excellent channel for investors to get exposure to the Middle East energy sector that has previously only been available to GCC nationals,' commented MAC's founder and Chairman, Robert W. McMillen.