Tethys Petroleum Limited (United Kingdom) says agreement on joint venture signed between subsidiary TethysMunayGas and Eurasia Gas

/KASE, February 21, 11/ - Tethys Petroleum Limited (Channel Islands), whose common shares are officially listed on Kazakhstan Stock Exchange (KASE) has provided KASE with the following press-release of February 17, 2011: quote Today Tethys Petroleum Limited (hereafter - "Tethys" or "Company") (TSX: TPL) announced that TethysMunayGas, its fully owned subsidiary in Kazakhstan, signed an agreement on a joint-venture on construction and operation of a railway oil-loading terminal in Kazakhstan. The enterprise will be equally (50/50) owned by TethysMunayGas and its new local partner - Eurasia Gas, which has broad experience in the oil distribution industry in Kazakhstan. At the first stage of oil exploration, Tethys is currently marketing the processed oil from well AKD01, according to the early oil exploration scheme. The oil is delivered to a site near Emba situated 430 km far off the well, where it is processed and afterwards transported to local oil refineries. This initial oil scheme was adopted for quick mobilization of cash flows and acquiring of experience of delivering oil locally, as much as 750 barrels a day. Currently some infrastructure for the second stage of oil exploration is being created on the oilfield, in order to ensure its compliance with the technical requirements of oil refineries and increase the output from well AKD01 from 750 to 3,000-4,000 barrels/day. Construction of a terminal will substantially reduce the transportation distance and operating costs, increase the profit margin and decrease the number of tanks required for transportation of that volume. The infrastructure for the second stage of oil exploration and the terminal is supposed to be put into operation by June 2011; the oil production will be increased to 3,000-4,000 barrels/day. It is expected that the improved oil and growing bulk based on reduced transportation costs will increase Tethys's revenues. unquote [2011-02-21]