Tethys Petroleum Limited
TSX : TPL

Tethys Petroleum Limited

March 21, 2011 08:45 ET

Tethys Petroleum Limited: 2010 Annual Results and Conference Call Details

GRAND CAYMAN, CAYMAN ISLANDS--(Marketwire - March 21, 2011) - Tethys Petroleum Limited ("Tethys" or the "Company") (TSX:TPL) today announced its Annual Results for the period ended December 31, 2010. The full Annual Results together with a Management Discussion & Analysis have been filed with the Canadian securities regulatory authorities. 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.

The Company's 2010 financial statements are prepared under International Financial Reporting Standards ("IFRS").

Highlights

  • The Company generated revenues from gas and oil sales of US$14.71 million in the year ended December 31, 2010 reflecting a 72% increase compared to US$8.56 million in the year ended December 31, 2009.
     
  • Cash balance at December 31, 2010 was US$79.14 million compared to US$7.30 million at December 31, 2009.
     
  • The basic and diluted loss per share in the year ended December 31, 2010 was US$0.15 compared to US$0.20 in the year ended December 31, 2009.
     
  • Total assets at December 31, 2010 were US$267.75 million compared to US$137.08 million at December 31, 2009.
     
  • The average oil and gas production per production day for the fourth quarter 2010 was 6,158 boe/d
     
  • The Company's capital expenditure in the year ended December 31, 2010 was US$38.29 million plus a further $19.90 million by the Company's joint venture in Tajikistan compared to a total of US$32.29 million in the year ended December 31, 2009.
     
  • Operating costs in the year ended December 31, 2010 were US$7.08 million compared to US$3.40 million in the year ended December 31, 2009.
     
  • The Company recorded a net loss of US$29.65 million in the year ended December 31, 2010 compared to a net loss of US$21.72 million in the year ended December 31, 2009.

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 Wednesday, March 23, 2010. The North American conference call number is 866.788.0545 and the outside North America conference call number is 857.350.1683. The conference call code to use is 60363554. 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:

http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=213714&eventID=3901793

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.

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, 2010 for a description of risks and uncertainties relevant to our business, including our exploration activities. A boe conversion ratio of 6,000 cubic feet (169.9 cubic metres) of natural gas = 1 barrel of oil has been used and is based on the standard energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

   
Tethys Petroleum Limited
Consolidated Statement of Financial Position
(in US dollars) 
 
  As at December 31
  2010
$'000

2009
$'000
Non-current assets    
Intangible assets 16,892 24,378
Property, plant and equipment 115,653 73,171
Investments 1,015 659
Other receivables 12,320 5,171
Loan receivable from jointly controlled entity 35,460 21,727
  181,340 125,106
     
Current assets    
Inventories 2,121 2,368
Trade and other receivables 3,680 2,311
Cash and cash equivalents 79,135 7,297
Derivative financial instruments – interest rate swap 1,472 -
  86,408 11,976
     
Total assets 267,748 137,082
     
Equity attributable to shareholders    
Share capital 26,063 13,455
Share premium 297,222 153,748
Other reserves 34,261 27,775
Accumulated deficit (118,023) (88,374)
Total equity 239,523 106,604
     
Non-current liabilities    
Deferred gain on sale of assets to jointly controlled entity 3,699 3,659
Financial liabilities - borrowings 2,853 9,324
Shares to be issued - 3,750
Deferred taxation 4,070 598
Trade and other payables 721 808
Asset retirement obligations 192 206
  11,535 18,345
Current liabilities    
Financial liabilities - borrowings 5,047 1,086
Derivative financial instruments - warrants 405 1,053
Derivative financial instruments – interest rate swap - 95
Deferred revenue 2,450 3,113
Trade and other payables 8,788 6,786
  16,690 12,133
     
Total liabilities 28,225 30,478
     
Total shareholders' equity and liabilities 267,748 137,082
     
     
Tethys Petroleum Limited
Consolidated Statement of Comprehensive Loss
(in US dollars) 
 
  Year ended December 31,
  2010
$'000
2009
$'000
     
Sales and other operating revenues 14,706 8,559
Finance income 61 76
Total revenue and other income 14,767 8,635
     
Production expenditures (7,076) (3,405)
Depreciation, depletion and amortization (5,885) (3,238)
Exploration and evaluation expenditure written off - (887)
Listing expenses (1,288) (1,652)
Administrative expenses (25,511) (16,880)
Foreign exchange loss - net (337) (2,397)
Fair value loss (net) on derivative financial instrument (24) (479)
Loss from jointly controlled entity (634) (1,000)
Finance costs (190) (203)
     
Loss before taxation (26,178) (21,506)
     
Taxation (3,471) (214)
     
Net loss and comprehensive loss for the year attributable to shareholders (29,649) (21,720)
     
Loss per share attributable to shareholders    
     
Basic and diluted (0.15) (0.20)
     
No dividends were paid or are declared for the year (2009 – $Nil).    
     
     
Tethys Petroleum Limited
Interim Consolidated Statement of Cash Flows
(in US dollars) 
 
  Year ended December 31,
  2010
$'000
2009
$'000
Cash flow from operating activities    
Loss before taxation (26,178) (21,506)
Adjustments for    
    Share based payments 5,956 2,628
    Net finance cost 112 127
    Unsuccessful exploration and evaluation expenditures - 887
    Depreciation, depletion and amortization 5,885 3,238
    Payment of royalties (78) -
    Fair value loss on derivative financial instrument 24 479
    Listing expenses 351 -
    Net unrealised foreign exchange (gain)/loss (75) 1,120
    Loss from jointly controlled entity 634 1,000
    Deferred revenue (663) 3,113
    Net change in non-cash working capital (2,792) (1,160)
Net cash used in operating activities (16,824) (10,074)
     
Cash flow from investing activities    
Interest received 61 76
Expenditure on exploration and evaluation assets (31,688) (22,648)
Expenditures on property, plant and equipment (6,605) (9,573)
Investment in restricted cash (356) (72)
Acquisition of subsidiary, net of cash received - 532
Sale of subsidiaries, net of cash disposed - (112)
Payments made on behalf of jointly controlled entity (14,070) -
Movement in advances to construction contractors (3,298) 829
Value added tax receivable (4,148) (670)
Net change in non-cash working capital 3,461 1,273
Net cash used in investing activities (56,643) (30,365)
     
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 1,840 5,020
Repayment of long-term borrowings (4,974) (856)
Interest paid on long-term borrowings and other non-current payables (1,036) (152)
Other non-current liabilities (296) (109)
Proceeds related to shares to be issued - 3,750
Proceeds from issuance of equity, net of issue costs 149,770 17,906
Net cash generated from financing activities 145,304 25,559
     
Effects of exchange rate changes on cash and cash equivalents 1 (23)

Net decrease in cash and cash equivalents
71,838 (14,903)
Cash and cash equivalents at beginning of the year 7,297 22,200
Cash and cash equivalents at end of the year 79,135 7,297
     
     

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