First Quarter 2014 Financial Results

May 15, 2014

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

--  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 or on Tethys’ website at 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.


The call is being webcast and can be accessed at:

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,   December 31,
                                                        2014           2013
Non-current assets
Deferred tax                                             317            322
Intangible assets                                     42,457         31,074
Property, plant and equipment                         15,088         15,291
Restricted cash                                          666            660
Investment in joint arrangements                           4              4
                                                      58,532         47,351
Current assets
Trade and other receivables                            1,369          1,358
Advances                                                   -          4,000
Cash and cash equivalents                             13,698         25,109
Restricted cash                                          489            475
Assets of a disposal group classified as held
 for sale                                            158,793        156,325
                                                     174,349        187,267

Total assets                                         232,881        234,618

Share capital                                         29,956         28,756
Share premium                                        311,797        307,295
Other reserves                                        42,740         42,621
Accumulated deficit                                 (187,382)      (182,533)
Non-controlling interest                               6,402          6,454
Total equity                                         203,513        202,593

Non-current liabilities
Financial liabilities - borrowings                     5,744              -
                                                       5,744              -
Current liabilities
Financial liabilities - borrowings                       971          4,965
Derivative financial instruments - warrants               36             17
Current taxation                                           7            144
Trade and other payables                               3,609          4,946
Provisions                                               377            520
Liabilities of a disposal group classified as
 held for sale                                        18,624         21,433
                                                      23,624         32,025

Total liabilities                                     29,368         32,025

Total equity and liabilities                         232,881        234,618

Tethys Petroleum Limited
Condensed Consolidated Statement of Comprehensive Income (unaudited)
(in thousands of US dollars)

                                               Three months ended March 31,
                                                       2014        Restated

Sales and other revenues                              6,781          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) - net                        7             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)

Taxation                                              1,321            (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 payments                                   119             331
 Net finance cost                                       603             682
 Depreciation, depletion and amortization               151           4,979
 Fair value gain on derivative financial
  instruments                                            19             430
 Net unrealised foreign exchange (gain)/loss             11             (48)
 (Loss)/profit from jointly controlled
  entity                                              1,203            (257)
 Movement in deferred revenue                             -          (1,614)
 Movement in provisions                                (142)              -
 Net change in working capital                           91           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 received                                        50              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
 contractors                                            953              42
Movement in value added tax receivable                 (269)            884
Net change in working capital                           258            (945)
Net cash used in investing activities                (6,274)         (1,251)

Cash flow from financing activities
Proceeds from issuance of borrowings, net of
 issue costs                                          6,707             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
 activities                                              74          (1,709)
Effects of exchange rate changes on cash and
 cash equivalents                                        99               6
Net decrease in cash and cash equivalents           (10,406)           (392)
Cash and cash equivalents at beginning of
 the period                                          25,731           1,750
Cash and cash equivalents at end of the
 period                                              15,325           1,358
Cash and cash equivalents at end of the
 period comprises:
Cash in assets of a disposal group held for
 sale                                                 1,627               -
Cash and cash equivalents                            13,698           1,358
                                                     15,325           1,358

Tethys Petroleum Limited
Sabin Rossi
Vice President Investor Relations

Tethys Petroleum Limited

Media / IR Enquiries
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Ben Brewerton/Adam Cubbage/James Styles
+44 203 727 1000

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Anita Wan
+852 2217 2999

Source: Tethys Petroleum Limited