Tethys Petroleum Limited

TSX : TPL
LSE : TPL


Tethys Petroleum Limited

May 15, 2014 17:00 ET

Tethys Petroleum Limited: First Quarter 2014 Financial Results

GRAND CAYMAN, CAYMAN ISLANDS--(Marketwired - May 15, 2014) - Tethys Petroleum Limited ("Tethys" or the "Company") (TSX:TPL) (LSE:TPL) today announced its First Quarter 2014 Financial Results.

Corporate Highlights

  • Drilling of a further 3 successful shallow gas exploration wells: AKK17, AKK18 and AKK19. These wells have a predicted test capacity of over 20 million cubic feet (570,000 cubic metres) of gas per day based on nearby similar well results. Further shallow well drilling is planned as well as tie in of these and other wells to increase production of natural gas
  • Independent report commissioned on the "Klymene" prospect in Kazakhstan estimated Unrisked Mean Recoverable Oil Resources at over 400 million barrels. The Klymene exploration well is planned for later this year following successful completion of the recently announced SinoHan acquistion
  • Completion of the acquisition of a 56% interest in Blocks XIA, XIM and XIN, in eastern Georgia; areas which the Company believes have good potential for both unconventional and conventional oil, with independent estimates giving some 1.8 billion barrels oil equivalent of Unrisked Mean Recoverable Resources to Tethys' interest
  • Selection of seismic contractor for the next phase of the geophysical acquisition on the Bokhtar PSC in Tajikistan by the joint Tethys/TOTAL/CNPC joint operating company BOC
  • Successful capital raise of USD15 million completed in May, 2014

Financial Highlights

  • Loss for the period from continuing operations reduced 6% year-on-year to USD 4.4 million (Q1 2013: USD4.7 million)
  • Basic & diluted loss per share of USD0.01 cent from continuing operations (Q1 2013: USD0.02 cents)
  • Capital Expenditure of USD7.3 million (Q1 2013: USD1.3 million)
  • Cash and cash equivalents at the end of Q1 2014 of USD13.7 million (Q1 2013: USD1.4 million)
  • Oil and gas revenue from continuing operations of USD6.8 million - a decrease of 35% on the comparative period (Q1 2013: USD10.5 million) primarily due to trucking issues related to weather and issues with downhole pumps (now largely resolved)

The full Quarterly Results together with Management's Discussion and 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 First Quarter 2014 financial statements are prepared under International Financial Reporting Standards ("IFRS").

The above highlights along with other 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 9:00AM EDT (2:00PM BST) on Friday, May 16, 2014. The North American conference call number is 800-299-8538 and the outside North America conference call number is +1-617-786-2902. The conference call code to use is 55303387. 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/3dc574fb9ff21e9ee30eaa5e61b134aa

Tethys is focused on oil and gas exploration and production activities in Central Asia and the Caspian Region. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.

Tethys Petroluem Limited
Condensed Consolidated Statement of Financial Position (unaudited)
(in thousands of US dollars)
As at
March 31,
2014
December 31,
2013
Non-current assets
Deferred tax317 322
Intangible assets42,457 31,074
Property, plant and equipment15,088 15,291
Restricted cash666 660
Investment in joint arrangements4 4
58,532 47,351
Current assets
Trade and other receivables1,369 1,358
Advances- 4,000
Cash and cash equivalents13,698 25,109
Restricted cash489 475
Assets of a disposal group classified as held for sale158,793 156,325
174,349 187,267
Total assets232,881 234,618
Equity
Share capital29,956 28,756
Share premium311,797 307,295
Other reserves42,740 42,621
Accumulated deficit(187,382)(182,533)
Non-controlling interest6,402 6,454
Total equity203,513 202,593
Non-current liabilities
Financial liabilities - borrowings5,744 -
5,744 -
Current liabilities
Financial liabilities - borrowings971 4,965
Derivative financial instruments - warrants36 17
Current taxation7 144
Trade and other payables3,609 4,946
Provisions377 520
Liabilities of a disposal group classified as held for sale18,624 21,433
23,624 32,025
Total liabilities29,368 32,025
Total equity and liabilities232,881 234,618
Tethys Petroleum Limited
Condensed Consolidated Statement of Comprehensive Income (unaudited)
(in thousands of US dollars)
Three months ended March 31,
2014 2013
Restated
Sales and other revenues6,781 10,474
Sales expenses(744)(644)
Production expenses(3,798)(3,360)
Depreciation, depletion and amortization(151)(4,383)
Business development expenses(740)(368)
Administrative expenses(5,126)(4,490)
Transaction costs of assets held for sale(15)-
Share based payments(119)(331)
Foreign exchange gain/(loss) - net7 131
Fair value loss on derivative financial instrument - net(19)(430)
(Loss)/profit from jointly controlled entity(1,203)257
Finance costs - net(603)(685)
Loss before taxation from continuing operations(5,730)(3,829)
Taxation1,321 (854)
Loss for the period from continuing operations(4,409)(4,683)
(Loss)/profit for the period from discontinued operations net of tax
(492
)
356
Loss and total comprehensive income for the period
(4,901
)
(4,327
)
Loss and total comprehensive income attributable to:Shareholders

(4,849
)

(4,229
)
Non-controlling interest(52)(98)
Loss and total comprehensive income for the year
(4,901
)
(4,327
)
Loss per share attributable to shareholders:
Basic and diluted - from continuing operations(0.01)(0.02)
Basic and diluted - from discontinued operations- -
Tethys Petroleum Limited
Condensed Consolidated Statement of Cash Flows (unaudited)
(tabular amounts in thousands of US dollars)
Three months ended March 31,
2014 2013
Cash flow from operating activities
Loss before taxation from continuing operations(5,730)(3,829)
(Loss)/profit before tax from discontinued operations(492)469
Adjustments for
Share based payments119 331
Net finance cost603 682
Depreciation, depletion and amortization151 4,979
Fair value gain on derivative financial instruments19 430
Net unrealised foreign exchange (gain)/loss11 (48)
(Loss)/profit from jointly controlled entity1,203 (257)
Movement in deferred revenue- (1,614)
Movement in provisions(142)-
Net change in working capital91 1,419
Cash (used in)/generated from operating activities(4,167)2,562
Corporation tax paid(138)-
Net cash (used in)/generated from operating activities(4,305)2,562
Cash flow from investing activities
Interest received50 50
Expenditure on exploration and evaluation assets(3,217)(234)
Expenditures on property, plant and equipment(4,049)(1,030)
Movement in restricted cash- (18)
Movement in advances to construction contractors953 42
Movement in value added tax receivable(269)884
Net change in working capital258 (945)
Net cash used in investing activities(6,274)(1,251)
Cash flow from financing activities
Proceeds from issuance of borrowings, net of issue costs6,707 737
Repayment of borrowings(6,030)(1,862)
Interest paid on borrowings(484)(561)
Proceeds from issuance of equity- 48
Share issue costs(48)-
Movement in other non-current liabilities(71)(71)
Net cash generated from/(used in) financing activities74 (1,709)
Effects of exchange rate changes on cash and cash equivalents99 6
Net decrease in cash and cash equivalents(10,406)(392)
Cash and cash equivalents at beginning of the period25,731 1,750
Cash and cash equivalents at end of the period15,325 1,358
Cash and cash equivalents at end of the period comprises:
Cash in assets of a disposal group held for sale1,627 -
Cash and cash equivalents13,698 1,358
15,325 1,358

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