The company said capital expenditure in the three months to 30 September 2009 was US$8.337 million compared to US$14.152 million in the same period of 2008. Capital expenditure for the period focused operationally on drilling of the "deep" exploration well AKD01 at Akkulka, Kazakhstan; drilling of the new East Komsomolsk well KOM200 in Tajikistan; drilling of exploration well EOL 09 at East Olimtai in Tajikistan; Tajik seismic data processing and workovers on wells in Uzbekistan.

As at 30 September 2009 in Uzbekistan products valued at US$815,000 were stored in inventory. “This stock is being held in inventory for a batch sale, which should realise a better price and had this stock been sold the net loss would have been significantly reduced”, the company said.

Tethys Petroleum Limited said operating costs for Q3 2009 were US$0.748 million compared to US$0.275 million for the same period in 2008 primarily as a result of commencing oil production in Uzbekistan.

Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Tajikistan, Kazakhstan and Uzbekistan. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.