Tethys Petroleum Limited
TSX : TPL

Tethys Petroleum Limited

March 31, 2010 19:16 ET

Tethys Petroleum Limited: 2009 Annual Results and Conference Call Details

GEORGETOWN, GRAND CAYMAN, CAYMAN ISLANDS--(Marketwire - March 31, 2010) - Tethys Petroleum Limited ("Tethys" or the "Company") (TSX:TPL) today announced its Annual Results for the period ended December 31, 2009. The full Annual Results together with a Management Discussion & Analysis have been filed with the Canadian securities regulatory authorities. Tethys also announced that it has filed its Annual Information Form ("AIF") which contains reserves data and other information about the Company for the period ended December 31, 2009, and the reports as mandated by National Instrument 51-101. Copies of the filed documents may be obtained via SEDAR at www.sedar.com or on Tethys' website at www.tethyspetroleum.com. The summary financial statements are attached to this press release.

In 2009 the Company prepared its first financial statements under International Financial Reporting Standards ("IFRS") instead of US GAAP, resulting in a re-statement of 2008 comparatives.

Highlights

- The Company generated revenues from gas and oil sales of US$8.59 million in the year ended December 31, 2009 compared to US$5.36 million in the year ended December 31, 2008.

- The Company recorded a net loss of US$21.506 million in the year ended December 31, 2009 compared to a net loss of US$22.184 million in the year ended December 31, 2008.

- Capital expenditure in the year ended December 31, 2009 was US$32.221 compared to US$42.807 million in the year ended December 31, 2008.

- Operating costs in the year ended December 31, 2009 were US$3.405 million compared to US$1.334 million in the year ended December 31, 2008 reflecting the additional operating costs from the Uzbekistan acquisition.

- General and Administrative costs in the year ended December 31, 2009 were US$16.880 million compared to US$17.915 million in the year ended December 31, 2008.

These highlights along with other operational and financial details will be further discussed in a scheduled conference call. Details of the conference call can be found below:

Conference Call:

A conference call will be held at 11:00 AM Eastern Time on Tuesday, April 6, 2010. The North American conference call number is (888) 231-8191 and the outside North America conference call number is (647) 427-7450. The conference call code to use is 66568342. Please call in about 10 minutes before the starting time in order to be patched into the call.

Webcast:

The call is being webcast and can be accessed at:

www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3015100

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

This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to our operations. Such forward looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions. See our Annual Information Form for the year ended December 31, 2009 for a description of risks and uncertainties relevant to our business, including our exploration activities.



Tethys Petroleum Limited

Consolidated Financial Statements
December 31, 2009
(in thousands of US dollars)


Tethys Petroleum Limited
Consolidated Statement of Financial Position

(in thousands of US dollars)

As at December 31 As at January 1
2009 2008 2008
$ $ $
Non-current assets
Property, plant and equipment 73,171 65,422 38,327
Intangible assets 24,378 16,105 7,335
Investments 659 587 318
Trade and other receivables 5,171 6,357 5,814
Loan receivable from jointly
controlled entity 21,727 0 0
----------------------------------------
125,106 88,471 51,794
----------------------------------------

Current assets
Inventories 2,368 213 -
Trade and other receivables 2,311 2,664 1,360
Cash and cash equivalents 7,297 22,200 26,692
----------------------------------------
11,976 25,077 28,052
----------------------------------------

Total assets 137,082 113,548 79,846
----------------------------------------
----------------------------------------

Equity attributable to shareholders
Share capital 13,455 6,639 4,511
Share premium 153,748 138,598 94,972
Other reserves 27,775 25,147 20,728
Accumulated deficit (88,374) (66,654) (44,470)
----------------------------------------
Total equity 106,604 103,730 75,741
----------------------------------------

Non-current liabilities
Deferred gain on sale of assets to
jointly controlled entity 3,659 - -
Financial liabilities - borrowings 9,324 5,096 -
Shares to be issued 3,750 - -
Deferred taxation 598 - -
Trade and other payables 808 523 776
Asset retirement obligations 206 465 1,050
----------------------------------------
18,345 6,084 1,826
----------------------------------------
Current liabilities
Financial liabilities - borrowings 1,086 853 -
Derivative financial instruments -
warrants 1,053 146 -
Derivative financial instruments -
interest rate swap 95 - -
Deferred revenue 3,113 - -
Trade and other payables 6,786 2,735 2,279
----------------------------------------
12,133 3,734 2,279
----------------------------------------

----------------------------------------
Total liabilities 30,478 9,818 4,105
----------------------------------------

Total shareholders' equity and
liabilities 137,082 113,548 79,846
----------------------------------------
----------------------------------------



Tethys Petroleum Limited
Consolidated Statement of Comprehensive Loss

(in thousands of US dollars, except for per share amounts)

Year ended December 31,
2009 2008
$ $

Sales and other operating revenues 8,559 5,360
Finance income 76 832
---------------------------
Total revenue and other income 8,635 6,192

Production expenditures (3,405) (1,334)
Depreciation, depletion and amortization (3,238) (4,333)
Exploration and evaluation expenditure written
off (887) (2,292)
Listing expenses (1,652) -
Administrative expenses (16,880) (17,915)
Foreign exchange gains (loss) net (2,397) (3,060)
Fair value gain / (loss) on derivative financial
instrument (479) 929
Loss from jointly controlled entity (1,000) -
Finance costs (203) (371)
---------------------------

Loss before taxation (21,506) (22,184)

Taxation (214) -
---------------------------

Net loss and comprehensive loss for the year
attributable to shareholders (21,720) (22,184)
---------------------------
---------------------------

Loss per share attributable to shareholders

---------------------------
---------------------------
Basic and diluted (0.20) (0.40)
---------------------------
---------------------------

No dividends were paid or are declared for the
year (2008 - $Nil).




Tethys Petroleum Limited
Consolidated Statement of Cash Flow

(in thousands of US dollars)

Year ended December 31,
2009 2008
$ $
Cash flow from operating activities
Loss before taxation (21,506) (22,184)
Adjustments for
Share based payments 2,628 4,419
Net finance cost (income) 127 (461)
Unsuccessful exploration and evaluation
expenditures 887 2,292
Depreciation, depletion and amortization 3,238 4,333
Fair value gain (loss) on derivative financial
instrument 479 (929)
Net unrealised foreign exchange loss 1,120 1,277
Loss from jointly controlled entity 1,000 -
Deferred revenue 3,113 -
Net change in non-cash working capital (1,160) (844)
--------------------------
Net cash used in operating activities (10,074) (12,097)
--------------------------

Cash flow from investing activities
Interest received 76 832
Expenditure on exploration and evaluation assets (22,648) (6,519)
Expenditures on property, plant and equipment (9,573) (36,288)
Investment in restricted cash (72) (269)
Acquisition of subsidiary, net of cash received 532 -
Sale of subsidiaries, net of cash disposed (112) -
Movement in advances to construction contractors 829 1,548
Value added tax receivable (670) (2,091)
Net change in non-cash working capital 1,273 (217)
--------------------------
Net cash used in investing activities (30,365) (43,004)
--------------------------

Cash flow from financing activities
Proceeds from issuance of short-term borrowings 2,500 -
Repayment of short-term borrowings (2,500) -
Proceeds from issuance of long-term borrowings 5,020 7,430
Repayment of long-term borrowings (856) (579)
Interest paid on long-term borrowings and other
non-current payables (152) (380)
Other non-current liabilities (109) (253)
Proceeds related to shares to be issued 3,750 -
Proceeds from issuance of equity, net of issue
costs 17,906 45,754
--------------------------
Net cash generated from financing activities 25,559 51,972
--------------------------

Effects of exchange rate changes on cash and cash
equivalents (23) (1,363)

Net decrease in cash and cash equivalents (14,903) (4,492)
Cash and cash equivalents at beginning of the year 22,200 26,692
--------------------------
Cash and cash equivalents at end of the year 7,297 22,200
--------------------------
--------------------------


Contact Information