Revenues Increased by 106%
GRAND CAYMAN, CAYMAN ISLANDS, Mar 30, 2012 (MARKETWIRE via COMTEX) –Tethys Petroleum Limited (“Tethys” or the “Company”) (TSX: TPL)(LSE: TPL) today announced its Annual Results for the period ended December 31, 2011. Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Kazakhstan, Tajikistan, 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.
Operational Highlights
Kazakhstan
-- Successfully tested the Doris AKD05 and AKD06 appraisal wells with a combined flow rate of over 6,000 barrels of oil per day -- 2P Reserves increased by 45% to 25.3 million barrels of oil equivalent -- AKD03 (Dione) exploration well flowed commercial oil from a new reservoir -- KBD01 (Kalypso) exploration well drilled and logged with indications on the logs that moveable hydrocarbons are present. To be tested later this year -- Aral Oil Terminal land acquired and construction commenced (now complete and about to commence operations)
Tajikistan
-- Deep sub-salt exploration programme advanced with completion of Graviometry Survey -- EOL09 (East Olimtoi) exploration well discovers oil, believed to be the first oil discovery in Tajikistan since independence - testing programme about to recommence -- Persea exploration well (the last commitment well under the Bokhtar PSC) completed with potential logged hydrocarbons - to be tested after EOL09 well -- Successful rehabilitation work on Beshtentak oilfield
Uzbekistan
-- Negotiations commenced on acquiring a new producing oil field -- MOU signed to carry out exploration studies on a large acreage position in the North Ustyurt Basin - the same basin which contains the Doris oil discovery
Financial Highlights
-- 2011 Total Revenue was USD30.30 million (2010 USD14.71 million) -- The average oil and gas production in the year ended 2011 was 5,730 barrels of oil equivalent per day. The average oil and gas production for Q4 2011 was 6,584 barrels of oil equivalent per day -- Tethys increased interest in the Bokhtar PSC to 85% (from 51%) -- Total assets year-end 2011 USD263.39 million (2010: USD267.75 million) -- Capital expenditure in 2011 was USD41.90 million -- 2011 Operating costs were USD10.78 million (2010: USD7.08 million) -- 2011 Net Loss of USD26.99 million (2010: USD29.65 million) -- Cash balance at December 31, 2011 of USD11.63 million
The Company also announced completion of a USD10 million loan facility secured against its drilling rigs and related equipment. Part of this loan was a rollover of a previous debt facility primarily related to this equipment giving the company a total current debt burden of USD10 million dollars.
Dr. David Robson, Chairman and Chief Executive Officer of Tethys Petroleum, commented: “In 2011 we made significant progress on the key projects in Tethys. In Kazakhstan we drilled successful appraisal wells and made a new exploration discovery both significantly increasing our core reserves. The modeling work we have now completed based on these drilling results bodes well for the new appraisal/exploration wells we will drill in 2012 where success would see further reserves upgrades. The Aral Oil Terminal is now complete and will become operational imminently effectively doubling oil production. In Tajikistan we advanced the deep sub-salt exploration program with the completion of the graviometry survey, the results of which are very exciting and confirm our previous geological evaluation, indicating the possible presence of giant Jurassic reefs below the salt. Looking forward in 2012 the new final seismic survey will focus on the most prospective areas with the intention of firming up a location to spud a deep well.”
The full Annual Results together with a Management Discussion & Analysis and Annual Information Form 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 2011 financial statements are prepared under International Financial Reporting Standards (“IFRS”).
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 11:45 AM Eastern Standard Time (4:45 PM British Summer Time) on Monday, April 2, 2012. The North American conference call number is 866 700 6293 and the outside North America conference call number is +1 617 213 8835. The conference call code to use is 94211241. 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://phoenix.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=213714&eventID=4746203
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, 2011 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 Consolidated Statement of Financial Position (in US dollars) As at December 31 2011 2010 $’000 $’000 Non-current assets Intangible assets 99,959 16,892 Property, plant and equipment 128,918 115,653 Restricted cash 1,407 1,015 Prepayments and other receivables 10,217 12,320 Loan receivable from jointly controlled entity – 35,460 Investment in jointly controlled entities 1,113 – —————————– 241,614 181,340 —————————– Current assets Inventories 2,025 2,121 Trade and other receivables 5,478 3,680 Loan receivable from jointly controlled entity 2,013 – Cash and cash equivalents 10,746 79,135 Restricted cash 885 – Derivative financial instruments – interest rate swap 630 1,472 —————————– 21,777 86,408 —————————– Total assets 263,391 267,748 —————————– —————————– Equity attributable to shareholders Share capital 28,669 26,063 Share premium 306,725 297,222 Other reserves 38,530 34,261 Accumulated deficit (144,962) (118,023) Non-controlling interest 8,918 – —————————– Total equity 237,880 239,523 —————————– Non-current liabilities Deferred gain on sale of assets to jointly controlled entity – 3,699 Financial liabilities – borrowings 1,632 2,853 Deferred taxation 2,111 4,070 Trade and other payables 547 721 Asset retirement obligations 386 192 —————————– 4,676 11,535 —————————– Current liabilities Financial liabilities – borrowings 8,396 5,047 Derivative financial instruments – warrants 264 405 Derivative financial instruments – foreign currency hedge 157 – Deferred revenue 1,839 2,450 Trade and other payables 10,179 8,788 —————————– 20,835 16,690 —————————– —————————– Total liabilities 25,511 28,225 —————————– Total shareholders’ equity and liabilities 263,391 267,748 —————————– —————————– Tethys Petroleum Limited Consolidated Statement of Comprehensive Income (in US dollars) Year ended December 31, 2011 2010 (re-presented) $’000 $’000 Sales and other operating revenues 22,922 14,706 Other operating income 7,375 – ———————————- Total revenue and other income 30,297 14,706 Production expenditures (10,785) (7,076) Depreciation, depletion and amortization (13,111) (5,885) Impairment charge (8,983) – Unsuccessful exploration and evaluation expenditures (1,807) – Listing expenses (606) (1,288) Business development expenses (2,363) (35) Administrative expenses (20,549) (19,520) Share based payments (3,814) (5,956) Foreign exchange gain / (loss) – net 74 (337) Fair value loss (net) on derivative financial instrument (625) (24) Gain on previously held interest in jointly controlled entity 27,381 – Loss on settlement of pre-existing loan relationship (24,423) – Loss from jointly controlled entity (722) (634) Finance income / (costs) – net 1,100 (129) ———————————- Loss before taxation (28,936) (26,178) Taxation 1,947 (3,471) ———————————- Loss for the year (26,989) (29,649) ———————————- ———————————- Loss attributable to: Shareholders (26,939) (29,649) Non-controlling interest (50) – ———————————- Loss for the year (26,989) (29,649) ———————————- ———————————- Loss per share attributable to shareholders ———————————- ———————————- Basic and diluted (0.10) (0.15) ———————————- ———————————- No dividends were paid or are declared for the year (2010 – $Nil). Tethys Petroleum Limited Consolidated Statement of Cash Flows (in US dollars) Year ended December 31, 2011 2010 (re-presented) $’000 $’000 Cash flow from operating activities Loss before taxation (28,936) (26,178) Adjustments for Share based payments 3,814 5,956 Net finance (income) / cost (1,100) 112 Unsuccessful exploration and evaluation expenditures 1,807 – Depreciation, depletion and amortization 13,111 5,885 Impairment charge 8,983 – Payment of royalties – (78) Loss on disposal of assets 96 – Fair value loss on derivative financial instrument 625 24 Gain on previously held interest in SSEC (27,381) – Loss on settlement of pre-existing loan relationship 24,423 – Listing expenses – 351 Net unrealised foreign exchange (gain) (72) (75) Loss from jointly controlled entity 722 634 Deferred revenue (611) (663) Other operating income (7,375) – Net change in non-cash working capital (664) (2,792) ———————————- Net cash used in operating activities (12,558) (16,824) ———————————- Cash flow from investing activities Interest received 138 61 Expenditure on exploration and evaluation assets (11,633) (31,688) Expenditures on property, plant and equipment (30,269) (6,605) Investment in restricted cash (1,277) (356) Acquisition of subsidiary, net of cash received (6,785) – Payments made on behalf of jointly controlled entity (18,292) (14,070) Movement in advances to construction contractors 2,490 (3,298) Movement in value added tax receivable (2,982) (4,148) Net change in non-cash working capital 682 3,461 ———————————- Net cash used in investing activities (67,928) (56,643) ———————————- Cash flow from financing activities Investment in jointly controlled entity (1,113) – Proceeds from issuance of long-term borrowings 2,393 1,840 Repayment of long-term borrowings (642) (4,974) Interest paid on long-term borrowings and other non-current payables (356) (1,036) Non-current other payables (284) (296) Proceeds from issuance of equity, net of issue costs 12,109 149,770 ———————————- Net cash generated from financing activities 12,107 145,304 ———————————- Effects of exchange rate changes on cash and cash equivalents (10) 1 Net decrease in cash and cash equivalents (68,389) 71,838 Cash and cash equivalents at beginning of the year 79,135 7,297 ———————————- Cash and cash equivalents at end of the year 10,746 79,135 ———————————- ———————————-
Tethys Petroleum Limited
Sabin Rossi, – All Investor Queries
Vice President Investor Relations
Office: +1 416-941-1257
+1 416-947-0167 (FAX)
Europe
Tethys Petroleum Limited
Veronica Seymour, – All Media Queries
Vice President Corporate Communications
Office: +44 1481 725911
+44 1481 725922 (FAX)
Corporate Brokers:
FirstEnergy Capital LLP.
Hugh Sanderson / David Van Erp +44 207 448 0200
Seymour Pierce Richard Redmayne / Jonathan Wright / Stewart Dickson Office: +44 207 107 8000
Asia Pacific:
Quam IR Anita Wan
Office phone/fax: +852 2217 2999
FTI Consulting – London
Ben Brewerton / Edward Westropp
Office: +44 207 831 3113
Tethys Petroleum Limited
info@tethyspetroleum.com
www.tethyspetroleum.com
Mobile site: http://m.tethyspetroleum.com
SOURCE: Tethys Petroleum Limited