2009-10-20 08:05:02 -

In the latest research report published by Fraser Mackenzie, a renowned Canadian securities firm, Tethys Petroleum Limited ("Tethys", TSX: TPL) was rated at "Strong Buy" with a target price of C$1.0.

Mr Vic Vallance, the author of the research report and a leading Canadian energy analyst with over 20 years of experience in equity analysis in the oil and gas sector, pointed out in the research report that Tethys is near cash flow breakeven, and the company's cash flow will turn positive with the addition of Phase 2 gas volumes, and estimated cash flow per share ("CFPS") will grow from a deficit in 2009 to US$0.19 in 2010 and US$0.27 in 2011.

According to the estimates of Mr Vallance, the

shares of Tethys trade at 3.6 times his 2010 CFPS estimate and 2.5 times his 2011 estimate. Mr Vallance added that the shares provide upside leverage to a high impact exploration program.

Tethys' closing price was up 5.41% on the day the report was released. The stock closed at C$0.78 on 15 Oct, representing an increase of about 83.5% to the placing price of C$0.425 in June 2009.

Please visit www.sendspace.com/file/bmdugk for Fraser Mackenzie's report in full.

About Tethys Petroleum Limited

Tethys Petroleum Limited ("Tethys") is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republic of Kazakhstan, the Republic of Tajikistan and the Republic of Uzbekistan. This highly prolific oil and gas area is rapidly developing and Tethys believes significant potential exists in both exploration and in discovered deposits. www.tethyspetroleum.com



Source: Tethys Petroleum Limited

Contact: Quam IR, Quam (H.K.) Limited Ms Anita Wan Tel: (852) 2217 2687 E-mail: anita.wan@quamgroup.com Ms Sharon Au Tel: (852) 2217 2680 E-mail: sharon.au@quamgroup.com Ms Venus Lam Tel: (852) 2217 2909 E-mail: venus.lam@quamgroup.com

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