Tethys Petroleum Limited
TSX : TPL
LSE : TPL

Tethys Petroleum Limited

August 15, 2011 16:00 ET

Tethys Petroleum Limited: Q2 Results and Conference Call Details

GRAND CAYMAN, CAYMAN ISLANDS--(Marketwire - Aug. 15, 2011) - Tethys Petroleum Limited ("Tethys" or the "Company") (TSX:TPL)(LSE:TPL) today announced its second quarter results for the period ended June 30, 2011. The second quarter 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 reports financial results in accordance with International Financial Reporting Standards ("IFRS").

Highlights

  • Production revenues for the six months to June 30, 2011 from Kazakhstan and Uzbekistan sales totalled some US$8.657 million compared to US$8.146 million for the same period in 2010, representing a six per cent increase.

  • Other operating revenue was US$5.706 million compared to nil in the same period of 2010.

  • Net loss was US$8.991 million compared to US$11.321 million in the same period of 2010.

  • Capital expenditure, excluding the joint venture in Tajikistan, in the six months ended June 30, 2011 was US$25.686 million compared to US$11.759 million in the six months ended June 30, 2010.

  • The average oil and gas production per production day for the six months ended June 30, 2011 was 5,566 boe/d compared to 3,476 boe/d in the same period of 2010.

  • Total assets at June 30, 2011 were US$261.144 million compared to US$184.082 million at June 30, 2010.

  • Cash balance at June 30, 2011 was US$35.346 million compared to US$30.232 million at June 30, 2010.

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 10 AM Eastern Time on Tuesday, August 16, 2011. An operational update will be given first followed by a review of the financials. The North American conference call number is (800) 291-5365 and the outside North America conference call number is (617) 614-3922. The conference call code to use is 31811593. 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=4179930

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, 2010 for a description of risks and uncertainties relevant to our business, including our exploration activities.

Tethys Petroleum Limited
Condensed Consolidated Statement of Financial Position
(Unaudited)
(in US Dollars)
As at
June 30, 2011 December 31, 2010
$'000 $'000
Non-current assets
Property, plant and equipment 129,179 115,653
Intangible assets 23,458 16,892
Investments 1,057 1,015
Prepayments and other receivables 14,590 12,320
Loan receivable from jointly controlled entity 48,821 35,460
217,105 181,340
Current assets
Inventories 3,228 2,121
Trade and other receivables 3,974 3,680
Cash and cash equivalents 32,346 79,135
Restricted cash 3,509 -
Derivative financial instruments – interest rate swap 982 1,472
44,039 86,408
Total assets 261,144 267,748
Equity attributable to shareholders
Share capital 26,063 26,063
Share premium 297,222 297,222
Other reserves 36,537 34,261
Accumulated deficit (127,014 ) (118,023 )
Total equity 232,808 239,523
Non-current liabilities
Deferred gain on sale of assets to jointly controlled entity 3,699 3,699
Financial liabilities - borrowings - 2,853
Deferred taxation 3,880 4,070
Trade and other payables 636 721
Asset retirement obligations 219 192
8,434 11,535
Current liabilities
Financial liabilities - borrowings 7,999 5,047
Derivative financial instruments - warrants 44 405
Derivative financial instruments - forex hedge 194 -
Deferred revenue 674 2,450
Trade and other payables 10,991 8,788
19,902 16,690
Total liabilities 28,336 28,225
Total shareholders' equity and liabilities 261,144 267,748
Tethys Petroleum Limited
Condensed Consolidated Statement of Comprehensive Income
(Unaudited)
(in US Dollars)
For the 3 months ended For the 6 months ended
June 30, 2011 June 30, 2010
(re-presented)
June 30, 2011 June 30, 2010
(re- presented)
$'000 $'000 $'000 $'000
Sales and other revenues 4,177 6,030 8,657 8,146
Other operating income 5,706 - 5,706 -
Finance income 764 22 796 25
Total revenue and other income 10,647 6,052 15,159 8,171
Production expenses (1,773 ) (1,938 ) (3,525 ) (2,875 )
Depreciation, depletion and amortisation (3,215 ) (1,358 ) (5,827 ) (2,050 )
Exploration and evaluation expenditure written off - (53 ) - (90 )
Listing expenses (327 ) (573 ) (333 ) (1,200 )
Business development expenses (1,208 ) (53 ) (1,229 ) (92 )
Administrative expenses (5,391 ) (4,919 ) (10,661 ) (8,460 )
Share based payments (864 ) (1,659 ) (2,057 ) (2,853 )
Foreign exchange gain /(loss) – net 16 (167 ) 216 (152 )
Fair value gain (loss) on derivative financial instrument (315 ) 2,973 (323 ) 472
Loss from jointly controlled entity (302 ) (93 ) (511 ) (244 )
Finance costs (39 ) (101 ) (78 ) (421 )
Loss before taxation (2,771 ) (1,889 ) (9,169 ) (9,794 )
Taxation 75 (1,433 ) 178 (1,527 )
Net loss and comprehensive loss for the period attributable to shareholders (2,696 ) (3,322 ) (8,991 ) (11,321 )
Loss per share attributable to shareholders
Basic and diluted (0.01 ) (0.02 ) (0.03 ) (0.06 )
Tethys Petroleum Limited
Condensed Consolidated Statement of Cash Flows
(Unaudited)
For the three and six months ended June 30
(in US Dollars)
For the 3 months ended For the 6 months ended
June 30, June 30, June 30, June 30,
2011 2010 2011 2010
$'000 $'000 $'000 $'000
Cash flow from operating activities
Loss before taxation for the period (2,771 ) (1,889 ) (9,169 ) (9,794 )
Adjustments for
Share based payments 864 1,659 2,057 2,853
Net finance (income) / cost (723 ) 74 (716 ) 383
Depreciation, depletion and amortization 3,215 1,358 5,827 2,050
Loss on disposal of assets 136 - 136 -
Payment of royalties - (78 ) - (78 )
Fair value gain (loss) on derivative financial instrument 315 (2,973 ) 323 (472 )
Listing expenses - - - 351
Net unrealised foreign exchange loss / (gain) 5 (32 ) 48 1
Loss from jointly controlled entity 302 93 511 244
Deferred revenue 646 (454 ) (1,776 ) (1,363 )
Other operating income (5,706 ) - (5,706 ) -
Net change in non-cash working capital 1,091 (1,858 ) 769 (3,644 )
Net cash used in operating activities (2,626 ) (4,100 ) (7,696 ) (9,469 )
Cash flow from investing activities
Interest received 44 22 76 25
Expenditure on exploration and evaluation assets (4,423 ) (5,305 ) (6,289 ) (7,076 )
Expenditures on property, plant and equipment (10,411 ) (1,603 ) (19,397 ) (4,276 )
Investment in restricted cash (3,549 ) 1 (3,551 ) (27 )
Payments made on behalf of jointly controlled entity (4,486 ) (4,889 ) (7,364 ) (7,169 )
Movement in advances to construction contractors 1,710 (2,173 ) (117 ) (3,200 )
Value added tax receivable (1,248 ) (873 ) (2,153 (1,324 )
Net change in non-cash working capital 406 742 354 732
Net cash used in investing activities (21,957 ) (14,078 ) (38,441 ) (22,315 )
Cash flow from financing activities
Proceeds from issuance of long term borrowings - - - 1,840
Repayment of long-term borrowings (90 ) (358 ) (176 ) (705 )
Interest paid on long-term borrowings and other non-current payables (97 ) (182 ) (197 ) (375 )
Other non-current liabilities (75 ) (75 ) (151 ) (145 )
Proceeds from issuance of equity, net of issue costs - 112 - 54,134
Net cash (used) / generated from financing activities (262 ) (503 ) (524 ) 54,749
Effects of exchange rate changes on cash and cash equivalents (209 ) (14 ) (128 ) (30 )
Net (decrease) / increase in cash and cash equivalents (25,054 ) (18,695 ) (46,789 ) 22,935
Cash and cash equivalents at beginning of the period 57,400 48,927 79,135 7,297
Cash and cash equivalents at end of the period 32,346 30,232 32,346 30,232

Contact Information

  • Tethys Petroleum Limited
    Sabin Rossi
    Vice President Investor Relations
    +1 416 572 2065
    +1 416 572 2201 (FAX)
    info@tethyspetroleum.com

    In Europe: Tethys Petroleum Limited
    Veronica Zhuvaghena
    Vice President Corporate Communications
    +44 1481 725911
    +44 1481 725922 (FAX)
    Web: http://www.tethyspetroleum.com
    Mobile site: http://m.tethyspetroleum.com

    In Asia-Pacific: Quam IR
    Anita Wan
    Associate Director
    Office phone/fax: +852 2217 2999