Tethys Petroleum Limited
LSE : TPL

November 15, 2013 02:00 ET

Third Quarter 2013 Financial Results

FOR:  TETHYS PETROLEUM LIMITED

TSX, LSE SYMBOL:  TPL

November 14, 2013

Tethys Petroleum Limited: Third Quarter 2013 Financial Results

GRAND CAYMAN, CAYMAN ISLANDS--(Marketwired - Nov. 14, 2013) - Tethys Petroleum Limited (TSX:TPL)(LSE:TPL)
("Tethys" or "the Company") today announced its third quarter 2013 financial results and gave an update on its
operations in Kazakhstan. These figures are headlined by the 2013 EBITDA figure adjusted for share-based
payments for the nine months to September 30, 2013 being more than seven times than that achieved in the same
period of 2012.

RECENT FINANCIAL HIGHLIGHTS

Nine months 2013 vs. Nine months 2012:

--  EBITDA adjusted for share-based payments of USD9.7 million compared to
    USD1.3 million in 2012
--  2013 loss before tax of USD4.5 million (2012: loss of USD15.7 million)
--  2013 loss after tax of USD7.0 million (2012: USD16.8 million)
--  2013 total oil and gas revenues up 15%

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

Operational Update (Kazakhstan)

AKD08 ("Doto")

The AKD08 ("Doto") well has reached a depth of 2,947 metres where the next casing string will be set. Electric
logs are being run and hydrocarbon indications have been observed in both the Cretaceous and Jurassic sections
whilst drilling and from the wireline logs, although the Cretaceous sands appear not to be as good a quality as
observed in the nearby AKD01 Doris discovery well. Such indications, though encouraging, do not necessarily
confirm the presence of commercially produceable hydrocarbons. Following logging and setting casing, drilling
will continue into the Triassic section which had oil shows in the AKD01 well. After completion of drilling, it
is likely that a testing programme will be undertaken. The Doto well is expected to take approximately a
further month to reach its planned total depth of 3,500 metres.

AKD09 ("Dexa")

The AKD09 ("Dexa") well has reached a depth of 1,366 metres and casing is about to be set before drilling ahead
towards the target zone. The Dexa well is expected to take approximately a further month to drill to the
planned total depth of 2,400 metres. The well is located to the north-west of the producing Doris field and is
designed to target Cretaceous channel sandstone sequences similar to the current major producing unit in the
Doris field.

KBD01 ("Kalypso")

The KBD01 ("Kalypso") comprehensive testing programme initially on the Permo-Carboniferous interval will
commence in mid December. Currently the well is undergoing pre-test operations to conduct a further cementing
prior to the main testing programme. The testing programme will involve fracture stimulation of the carbonate
interval approximately 4,100 metres below the surface and will take up to one month to complete. Electric logs
run over this section and drilling data indicated more than 100 metres of gross potential hydrocarbon bearing
zones.

Oil Production

Following continued optimisation of the downhole pumps, production is currently approximately 3,200 barrels of
oil per day from the three producing wells.

Shallow Gas Drilling program

The previously announced shallow gas work program is underway and results will be announced in due course.

The full Q3 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 EST US and Canada and 13:00 PM GMT European time on Friday, November
15, 2013. The North American conference call number is 866-515-2912 and the outside North America conference
call number is +1 617-399-5126. The conference call code to use is 99140866. 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/738b9c96fe1c3c9b77aa2b2948a65377

Tethys is focused on oil and gas exploration and production activities in Central Asia and the Caspian Region
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.

The indications of hydrocarbons from the shows while drilling and the electric log interpretation for the AKD08
("Doto") well are not necessarily indicative of the possible recovery of hydrocarbons from that well or of long
term performance. Production testing and other evaluation will be required before the Company is able to
establish the commercial viability of the well.

This press release contains "forward-looking information" which include statements related to the drilling
progress of the AKD08, AKD09 and KBD01 wells. Such forward-looking statements reflect our current views with
respect to future events and are subject to certain assumptions, including the assumption that the 30 day
periods will be sufficient for drilling the AKD08 and AKD09 wells to depth and the KBD01 testing programme will
commence in mid December. These forward looking statements are subject to risks and uncertainties, including
the risk that the drilling period for the wells will extend beyond the expected periods and the testing
programmes will be delayed or deferred because of operational and geological factors. 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. The forward looking statements contained herein speak only
as of the date of this press release and, unless required by applicable law, the Company undertakes no
obligation to publicly update or revise such information, whether as a result of new information, future events
or otherwise.

Note on non GAAP measures: "EBITDA adjusted for share based payments" is a non GAAP measure and is defined as
Earnings before Interest, Tax, Depreciation, Amortization and share based payments. See the Management
Discussion and Analysis for Q3 for a reconciliation to Profit / (Loss).


Tethys Petroleum Limited
Condensed Consolidated Statement of Financial Position
(Unaudited)
(in US Dollars)

                                                  As at

                                          September 30,        December 31,
                                                   2013                2012

                                                  $'000               $'000
Non-current assets
Property, plant and equipment                   113,409             121,097
Intangible assets                                55,419             107,374
Restricted cash                                   2,178               1,543
Prepayments and other receivables                 7,031               6,444
Investment in jointly controlled
 entity                                           1,120               1,116
                                       -----------------   -----------------
                                                179,157             237,574
                                       -----------------   -----------------

Current assets
Inventories                                       2,093               2,046
Trade and other receivables                      10,879               7,703
Loan receivable from jointly
 controlled entity                                2,723               2,403
Cash and cash equivalents                        51,207               1,750
Restricted cash                                     477                 477
                                       -----------------   -----------------
                                                 67,379              14,379
                                       -----------------   -----------------

Total assets                                    246,536             251,953
                                       -----------------   -----------------
                                       -----------------   -----------------

Equity attributable to shareholders
Share capital                                    28,756              28,671
Share premium                                   307,295             306,725
Other reserves                                   42,502              41,705
Accumulated deficit                            (171,963)           (165,385)
Non-controlling interest                          7,998               8,437
                                       -----------------   -----------------
Total equity                                    214,588             220,153
                                       -----------------   -----------------

Non-current liabilities
Financial liabilities - borrowings                6,117               3,688
Deferred taxation                                 5,338               2,912
Trade and other payables                            275                 351
Asset retirement obligations                        184                 524
                                       -----------------   -----------------
                                                 11,914               7,475
                                       -----------------   -----------------
Current liabilities
Financial liabilities - borrowings               11,735              13,625
Derivative financial instruments -
 warrants                                           299                 523
Deferred revenue                                    664               1,713
Trade and other payables                          7,265               8,231
Current tax                                          71                 233
                                       -----------------   -----------------
                                                 20,034              24,325
                                       -----------------   -----------------
Total liabilities
                                       -----------------   -----------------
                                                 31,948              31,800
                                       -----------------   -----------------
Total shareholders' equity and
 liabilities
                                                246,536             251,953
                                       -----------------   -----------------
                                       -----------------   -----------------


Tethys Petroleum Limited
Condensed Consolidated Statement of Comprehensive Income
(Unaudited)
For the three and nine months ended September 30, 2013
(in US Dollars)

                          For the 3 months ended     For the 9 months ended
                                   September 30,              September 30,

                            2013            2012       2013            2012
                           $'000           $'000      $'000           $'000
                                  (re-presented)             (re-presented)
Sales and other revenues   9,177           9,990     30,681          26,681

Sales expenses              (832)              -     (2,357)              -
Production expenses       (3,391)         (3,562)   (10,516)         (9,401)
Depreciation, depletion
 and amortisation         (3,721)         (4,766)   (12,234)        (12,557)
Exploration and
 evaluation expenditure
 written off                   -            (138)         -            (138)
Business development
 expenses                   (751)           (239)    (2,020)         (1,223)
Administrative expenses   (4,974)         (4,293)   (14,559)        (14,646)
Share based payments        (205)           (582)      (751)         (2,459)
Gain on Tajik farm-out      (205)              -      8,453               -
Foreign exchange loss       (140)           (158)       (62)           (334)
Fair value gain/(loss)
 on derivative financial
 instruments                 516            (149)       548            (216)
Gain/(loss) from jointly
 controlled entity           201            (395)       589            (294)
Net finance costs           (732)           (296)    (2,249)         (1,148)

                        ----------------------------------------------------
Loss before taxation      (5,057)         (4,588)    (4,477)        (15,735)

Taxation                    (328)           (529)    (2,540)         (1,100)

                        ----------------------------------------------------
Loss for the period       (5,385)         (5,117)    (7,017)        (16,835)
                        ----------------------------------------------------
                        ----------------------------------------------------

Loss attributable to:
Shareholders              (5,174)         (4,906)    (6,578)        (16,565)
Non-controlling interest    (211)           (211)      (439)           (270)
                        ----------------------------------------------------
Loss for the period       (5,385)         (5,117)    (7,017)        (16,835)
                        ----------------------------------------------------
                        ----------------------------------------------------

Loss per share
 attributable to
 shareholders

Basic and diluted          (0.02)          (0.02)     (0.02)          (0.06)


Tethys Petroleum Limited
Condensed Consolidated Statement of Cash Flows
(Unaudited)
For the three and nine months ended September 30, 2013
(in US dollars)

                          For the 3 months ended     For the 9 months ended
                                    September 30               September 30
                                2013        2012           2013        2012
                               $'000       $'000          $'000       $'000
Cash flow from operating
 activities
Loss before taxation for
 the period                   (5,057)     (4,588)        (4,477)    (15,735)
Adjustments for
  Share based payments           205         582            751       2,459
  Net finance cost /
   (income)                      732         296          2,249       1,148
  Depreciation, depletion
   and amortization            3,721       4,766         12,234      12,557
  Fair value (gain)/loss
   on derivative
   financial instruments        (516)        149           (548)        216
  Net unrealised foreign
   exchange (gain) / loss        114         228             (2)        216
  Gain on Tajik farm-out         205           -         (8,453)          -
  (Profit)/loss from
   jointly controlled
   entity                       (201)        395           (589)        294
  Movement in deferred
   revenue                      (491)       (157)        (1,049)       (601)
  Net change in non-cash
   working capital            (4,200)         84         (2,943)     (1,903)
                         ---------------------------------------------------
Cash generated/(used in)
 operating activities         (5,488)      1,755         (2,827)     (1,349)
  Corporation tax paid           (50)          -           (276)          -
                         ---------------------------------------------------
Net cash generated /
 (used) in operating
 activities                   (5,538)      1,755         (3,103)     (1,349)
                         ---------------------------------------------------
Cash flow from investing
 activities
Interest received                 60           -            152           5
Expenditure on
 exploration and
 evaluation assets              (947)     (2,412)        (1,458)     (4,014)
Expenditures on property,
 plant and equipment          (4,040)     (3,609)        (5,841)     (5,317)
Movement in restricted
 cash                            (10)          1           (635)        412
Investment in jointly
 controlled entity                 -           -             (4)         (5)
Repayment of loan
 receivable from jointly
 controlled entity                 -           -            400           -
Movement in advances to
 construction contractors     (1,409)       (643)        (2,321)     (1,677)
(Costs)/proceeds of Tajik
 farm-out                       (205)          -         63,199           -
Movement in value added
 tax receivable                  190         251          1,734       1,098
Net change in non-cash
 working capital                 704       1,476         (1,387)       (924)
                         ---------------------------------------------------
Net cash generated/(used
 in) investing activities     (5,657)     (4,936)        53,839     (10,422)
                         ---------------------------------------------------
Cash flow from financing
 activities
Proceeds from issuance of
 borrowings, net of issue
 costs                             -         999          4,714      10,334
Repayment of borrowings       (1,216)       (246)        (4,203)     (7,112)
Interest paid on
 borrowings                     (631)       (283)        (1,814)       (804)
Proceeds from issuance of
 equity, net of issue
 costs                             -           -            523           -
Movement in asset
 retirement obligation          (253)          -           (253)          -
Movement in other non-
 current liabilities             (69)        (71)          (212)       (213)
                         ---------------------------------------------------
Net cash generated /
 (used) in financing
 activities                   (2,169)        399         (1,245)      2,205
                         ---------------------------------------------------
Effects of exchange rate
 changes on cash and cash
 equivalents                      36         (44)           (34)        (34)
Net (decrease)/increase
 in cash and cash
 equivalents                 (13,328)     (2,826)        49,457      (9,600)
Cash and cash equivalents
 at beginning of the
 period                       64,535       3,972          1,750      10,746
                         ---------------------------------------------------
Cash and cash equivalents
 at end of the period         51,207       1,146         51,207       1,146
                         ---------------------------------------------------


FOR FURTHER INFORMATION PLEASE CONTACT:

Tethys Investor Relations
Tethys Petroleum Limited
Sabin Rossi
Vice President Investor Relations
srossi@tethyspetroleum.com

OR

Media / IR Enquiries
London
FTI Consulting
Ben Brewerton / Natalia Erikssen
+44 207 831 3113

OR

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

OR

Tethys Petroleum Limited
info@tethyspetroleum.com
Web: http://www.tethyspetroleum.com
Mobile site: http://m.tethyspetroleum.com
Twitter: https://twitter.com/tethyspetroleum

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