Tethys Petroleum Limited has signed a gas sales contract which will move the Company into a position of positive operating cash flow. This contract is for the initial sales of gas from the Akkulka gas field in Kazakhstan and will double current gas production and more than double current gas revenue. First deliveries under this contract are expected before the end of this month.

Bernard Murphy, Chief Financial Officer of Tethys, said, 'This is an important milestone for our company as with Akkulka gas on production combined with our existing revenue streams we will have a positive operating cash flow for the Company as a whole. This provides a strong base to grow from with our planned step up of oil production in Kazakhstan from 750 barrels of oil per day ('bopd') currently to 34,000 bopd in Q2 2011, and also planned oil production increases in Uzbekistan from our radial drilling program and new horizontal well. It is important to us to generate cash whilst we are appraising our exciting Doris oil discovery in Kazakhstan and exploring for more oil in the immediate area with the goal to become selffunding in the longterm.'

Tags: Tethys Petroleum Limited