Tethys Petroleum Limited

Tethys Petroleum Limited

May 13, 2011 16:55 ET

Tethys Petroleum Limited: First Quarter 2011 Financial Results

GRAND CAYMAN, CAYMAN ISLANDS--(Marketwire - May 13, 2011) - Tethys Petroleum Limited ("Tethys" or the "Company" (TSX:TPL) today announced its first quarter 2011 financial results. The results are underlined by a 112% increase in revenues over the first quarter of last year.

The Company reports financial results in accordance with International Financial Reporting Standards ("IFRS").


  • With sales of US$4.48 million in the three months ended March 31, 2011 the Company achieved a 112% increase on the same period of 2010 where sales were US$2.12 million.

  • The Company also recorded a reduced net loss of US$6.30 million in the three months ended March 31, 2011 compared to a net loss of US$8.00 million in the three months ended March 31, 2010.

  • Capital expenditure, excluding the joint venture in Tajikistan, in the three months ended March 31, 2011 was US$10.85 million compared to US$4.44 million in the three months ended March 31, 2010. In Tajikistan capital expenditure in the three months to March 31, 2011 was US$3.00 million compared to US$2.28 million in the three months ended March 31, 2010.

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 and other filings for a description of risks and uncertainties relevant to our business, including our exploration and production activities.

Tethys Petroleum Limited
Consolidated Statement of Financial Position
(in US Dollars)
As at
March 31,December 31,
Non-current assets
Property, plant and equipment122,250115,653
Intangible assets18,73816,892
Prepaids and other receivables14,93712,320
Loan receivable from jointly controlled entity38,17935,460
Current assets
Trade and other receivables3,2303,680
Cash and cash equivalents57,40079,135
Derivative financial instruments – interest rate swap1,2741,472
Total assets259,477267,748
Equity attributable to shareholders
Share capital26,06326,063
Share premium297,222297,222
Other reserves35,55534,261
Accumulated deficit(124,318)(118,023)
Total equity234,522239,523
Non-current liabilities
Deferred gain on sale of assets to jointly controlled entity3,6993,699
Financial liabilities - borrowings1,9502,853
Deferred taxation3,9564,070
Trade and other payables679721
Asset retirement obligations208192
Current liabilities
Financial liabilities - borrowings6,0055,047
Derivative financial instruments - warrants214405
Deferred revenue272,450
Trade and other payables8,2178,788
Total liabilities24,95528,225
Total shareholders' equity and liabilities259,477267,748
Tethys Petroleum Limited
Consolidated Statement of Comprehensive Loss
(in US Dollars)
Sales and other operating revenues4,4802,116
Finance income323
Total revenue and other income4,5122,119
Production expenditures(1,752)(974)
Depreciation, depletion and amortization(2,612)(692)
Listing expenses(6)(626)
Administrative expenses(6,484)(4,775)
Foreign exchange gains (net)20014
Fair value loss on derivative financial instrument(8)(2,501)
Loss from jointly controlled entity(209)(150)
Finance costs(39)(321)
Loss before taxation(6,398)(7,906)
Net loss and comprehensive loss for the period attributable to shareholders(6,295)(7,999)
Loss per share attributable to shareholders
Basic and diluted(0.02)(0.05)
No dividends were paid or are declared for the period (2010 – $Nil).
Tethys Petroleum Limited
Consolidated Statement of Cash Flows
For the three months ended March 31
(in US dollars)
Cash flow from operating activities
Loss before taxation for the period(6,398)(7,906)
Adjustments for
Share based payments1,1931,193
Net finance cost7309
Depreciation, depletion and amortization2,612692
Fair value loss on derivative financial instrument82,501
Listing expenses-351
Net unrealised foreign exchange loss4333
Loss from jointly controlled entity209150
Deferred revenue(2,422)(909)
Net change in non-cash working capital(322)(1,786)
Net cash used in operating activities(5,070)(5,372)
Cash flow from investing activities
Interest received323
Expenditure on exploration and evaluation assets(1,866)(1,770)
Expenditures on property, plant and equipment(8,986)(2,673)
Investment in restricted cash(2)(28)
Payments made on behalf of jointly controlled entity(2,878)(2,280)
Movement in advances to construction contractors(1,827)(1,027)
Value added tax receivable(905)(451)
Net change in non-cash working capital(52)(10)
Net cash used in investing activities(16,484)(8,236)
Cash flow from financing activities
Proceeds from issuance of long term borrowings-1,840
Repayment of long-term borrowings(86)(347)
Interest paid on long-term borrowings and other non-current payables(100)(193)
Other non-current liabilities(76)(70)
Proceeds from issuance of equity, net of issue costs-54,022
Net cash generated from financing activities(262)55,252
Effects of exchange rate changes on cash and cash equivalents81(14)
Net increase / (decrease) in cash and cash equivalents(21,735)41,630
Cash and cash equivalents at beginning of the period79,1357,297
Cash and cash equivalents at end of the period57,40048,927

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