Tethys Petroleum Limited
TSX : TPL
LSE : TPL

Tethys Petroleum Limited

May 15, 2013 17:46 ET

Tethys Petroleum Limited: First Quarter 2013 Financial Results

Revenues Increased by 94%

GRAND CAYMAN, CAYMAN ISLANDS--(Marketwired - May 15, 2013) - Tethys Petroleum Limited (TSX:TPL)(LSE:TPL) today announced its first quarter 2013 financial results. The results are highlighted by a 94% increase in revenues over the first quarter of last year.

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

RECENT HIGHLIGHTS

  • Q1 2013 oil and gas sales of USD12.6 million (Q1 2012: USD6.5 million)
  • Q1 2013 cash profit of USD2.8 million compared to a cash loss of USD1.7 million in Q1 2012
  • A new contract was signed to sell gas in Kazakhstan at USD2.56 per Mcf (USD90 per Mcm)
  • Q1 2013 accounting loss of USD4.3 million (Q1 2012: USD6.8 million)
  • Q1 2013 net cash generated from operating activities of USD2.6 million compared to Q1 2012 net cash used in operating activities of USD3.7 million

Production and Reserves Highlights

Oil production (before the deduction of local governments share or taxation) increased from 1,785 bopd (Q1 2012) to 3,795 bopd (Q1 2013), an increase of 112%. Similarly, boepd production has increased from 5,117 boepd (Q1 2012) to 6,366 boepd (Q1 2013) an increase of 24%.

The full Q1 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 above 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 8:00 AM Eastern Standard Time 1:00 PM British Summer Time on Thursday, May 16, 2013. The North American conference call number is 866-515-2910 and the outside North America conference call number is +1 617-399-5124. The conference call code to use is 20157467. 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://www.media-server.com/m/acs/2b6e312066466539eb1b2289cb88175f

Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Kazakhstan, Tajikistan 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, 2012 for a description of risks and uncertainties relevant to our business, including our exploration activities. A barrel of oil equivalent ("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
Condensed Consolidated Statement of Financial Position
(Unaudited)
(in US Dollars)
As at
March 31, 2013 December 31, 2012
$'000 $'000
Non-current assets
Property, plant and equipment 117,570 121,097
Intangible assets 107,587 107,374
Restricted cash 1,561 1,543
Prepayments and other receivables 5,518 6,444
Investment in jointly controlled entity 1,116 1,116
233,352 237,574
Current assets
Inventories 1,233 2,046
Trade and other receivables 7,766 7,703
Loan receivable from jointly controlled entity 2,710 2,403
Cash and cash equivalents 1,358 1,750
Restricted cash 477 477
13,544 14,379
Total assets 246,896 251,953
Equity attributable to shareholders
Share capital 28,678 28,671
Share premium 306,770 306,725
Other reserves 42,066 41,705
Accumulated deficit (169,614) (165,385)
Non-controlling interest 8,339 8,437
Total equity 216,239 220,153
Non-current liabilities
Financial liabilities - borrowings 5,359 3,688
Deferred taxation 3,643 2,912
Trade and other payables 298 351
Asset retirement obligations 583 524
9,883 7,475
Current liabilities
Financial liabilities - borrowings 10,526 13,625
Derivative financial instruments - warrants 1,405 523
Deferred revenue 99 1,713
Trade and other payables 8,275 8,231
Current tax 469 233
20,774 24,325
Total liabilities 30,657 31,800
Total shareholders' equity and liabilities 246,896 251,953
Tethys Petroleum Limited
Condensed Consolidated Statement of Comprehensive Income
(Unaudited)
For the three months ended March 31, 2013
(in US Dollars)
2013 2012
$'000 $'000
(re-presented)
Sales and other revenues 12,553 6,487
Total revenue and other income 12,553 6,487
Sales expenses (645) -
Production expenses (4,062) (2,910)
Depreciation, depletion and amortisation (4,979) (3,036)
Business development expenses (502) (373)
Administrative expenses (4,670) (4,797)
Share based payments (331) (603)
Foreign exchange gain / (loss) - net 131 (64)
Fair value loss on derivative financial instrument (430) (896)
Profit/ (loss) from jointly controlled entity 257 (62)
Net finance costs (682) (454)
Loss before taxation (3,360) (6,708)
Taxation (967) (140)
Loss for the period (4,327) (6,848)
Loss attributable to:
Shareholders (4,229) (6,748)
Non-controlling interest (98) (100)
Loss for the period (4,327) (6,848)
Basic and diluted (0.01) (0.02)
Tethys Petroleum Limited
Condensed Consolidated Statement of Cash Flows
(Unaudited)
For the three months ended March 31, 2013
(in US dollars)
2013 2012
$'000 $'000
Cash flow from operating activities
Loss before taxation for the period (3,360)(6,708)
Adjustments for
Share based payments 331 603
Net finance cost 682 454
Depreciation, depletion and amortization 4,979 3,036
Fair value loss on derivative financial instrument 430 896
Net unrealised foreign exchange (gain) / loss (48)35
Profit / (loss) from jointly controlled entity (257)62
Deferred revenue (1,614)(509)
Net change in non-cash working capital 1,419 (1,562)
Net cash generated / (used) in operating activities 2,562 (3,693)
Cash flow from investing activities
Interest received 50 88
Expenditure on exploration and evaluation assets (234)(995)
Expenditures on property, plant and equipment (1,030)(214)
Investment in restricted cash (18)261
Investment in jointly controlled entity - (3)
Movement in advances to construction contractors 42 367
Value added tax receivable 884 57
Net change in non-cash working capital (945)(1,279)
Net cash (used) in investing activities (1,251)(1,718)
Cash flow from financing activities
Proceeds from issuance of borrowings, net of issue costs 737 5,826
Repayment of borrowings (1,862)(6,615)
Interest paid on long-term borrowings and other non-current payables (561)(204)
Proceeds from issuance of equity, net of issue costs 48 -
Other non-current liabilities (71)(74)
Net cash (used) in financing activities (1,709)(1,067)
Effects of exchange rate changes on cash and cash equivalents 6 (88)
Net decrease in cash and cash equivalents (392)(6,566)
Cash and cash equivalents at beginning of the period 1,750 10,746
Cash and cash equivalents at end of the period 1,358 4,180

Contact Information

  • North America: Tethys Petroleum Limited
    Sabin Rossi - All Investor Queries
    Vice President Investor Relations
    Office: +1 416-941-1257
    +1 416-947-0167 (FAX)
    info@tethyspetroleum.com

    Europe: Tethys Petroleum Limited
    Veronica Seymour - All Media Queries
    Vice President Corporate Communications
    Office: +44 1481 725911
    +44 1481 725922 (FAX)
    www.tethyspetroleum.com
    Mobile site: m.tethyspetroleum.com

    Corporate Brokers:
    FirstEnergy
    Hugh Sanderson / David Van Erp
    Office: + 44 207 448 0200

    Seymour Pierce
    Richard Redmayne / Stewart Dickson
    Office: +44 207 107 8000

    Asia Pacific: Quam IR
    Anita Wan
    Office phone/fax: +852 2217 2999

    FTI Consulting
    Ben Brewerton / Natalia Erikssen
    Office: +44 207 831 3113