<a id="bm-comp-ed9a94e6-09b3-45a8-a646-14cd29df9156" name="bm-comp-ed9a94e6-09b3-45a8-a646-14cd29df9156" class="BMCustomAnchor"></a><table><tr><td bm-component-id="ed9a94e6-09b3-45a8-a646-14cd29df9156" style="vertical-align: top; width:100.000000%;"><ul><li>Q2 production slightly below</li><li>Focus in Q2: Exploration, FDP on Block 56 & strategic review</li><li>P/NAV of 0.59x, discounts Brent of USD 67/bbl</li></ul></td></tr></table><a id="bm-comp-c7d13cf3-94d0-4a29-aa04-f7a2f4c36d0c" name="bm-comp-c7d13cf3-94d0-4a29-aa04-f7a2f4c36d0c" class="BMCustomAnchor"></a><table><tr><td bm-component-id="c7d13cf3-94d0-4a29-aa04-f7a2f4c36d0c" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Q2 production slightly below ABGSCe</h3><p>We make two main changes to our estimates ahead of Tethys Oil's Q2 report: 1) We update our model with the trading update for Q2, which came in slightly below our estimates. Net production was 7.7kboe/d vs. ABGSCe at 8.3kboe/d and the net entitlement was 4.0kboe/d vs. ABGSCe at 4.2kboe/d. However, these numbers were expected given the monthly production updates that Tethys is providing; 2) We reduce our net production estimates for H2'24 from 8.3kboe/d to 8.0kboe/d due to lower exit rate production from H1. In sum, our EBIT estimate for '24e is down by 17%. For Q2, we now forecast revenues and EBITDA of USD 30.6m and USD 14.5m, respectively.</p><h3 class="bm-h3">Q2 focus: Exploration, FDP on Block 56 and strategic review</h3><p>In the Q2 report, we think the market will pay especially close attention to any news regarding: 1) Additional details on the field development plan (FDP) for Block 56 submitted during Q2, where any news on expected production contribution and timing would be of particular interest. 2) Results/comments on the Kunooz-1 exploration well in the Fahd area of Block 58, which was expected to be spudded in June (drilling is expected to take up to 60 days) and targeting +120mmboe of gross unrisked prospective resources. 3) Any news on the potential outcome or result of the ongoing strategic review that was initiated in the Q4 report.</p><h3 class="bm-h3">P/NAV of 0.59x discounts Brent to ~USD 67/bbl</h3><p>At the current share price, Tethys is trading at a P/NAV multiple of ~0.59x our YE'24e NAV of SEK 57/sh, and discounts an oil price of ~USD 67/bbl (P/NAV = 1). Our NAV valuation remains fairly unchanged since our last report. Consequently, we reiterate our fair value range of SEK 30-55/sh. This is equivalent to a P/NAV range of ~0.5x-0.9x, which is in line with the trading range of comparable Nordic-listed E&P companies.</p></td></tr></table>