GRAND CAYMAN, CAYMAN ISLANDS, Aug 13, 2010 (MARKETWIRE via COMTEX) —
Tethys Petroleum Limited (“Tethys” or the “Company”) (TSX: TPL) today announced its Second quarter Results for the period ended June 30, 2010. 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.
Highlights
-- Production revenues for the quarter from Kazakhstan and Uzbekistan sales totalled some US$6.03 million compared to US$2.80 million for the same period in 2009. -- The Company recorded a net loss before taxation of US$1.89 million in the quarter ended June 30, 2010 compared to a net loss of US$5.59 million in the same period of 2009. -- Capital expenditure in the three months to June 30, 2010 was US$7.31 compared to US$4.78 million in the same period of 2009. -- Production expenses in the quarter were US$1.94 million compared to US$ 0.96 million in the same period of 2009.
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 11:30 AM Eastern Time on Friday, August 20, 2010. The North American conference call number is (888) 231-8191 and the outside North America conference call number is (647) 427-7450. The conference call code to use is 89563821. 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.newswire.ca/en/webcast/viewEvent.cgi?eventID=3158100
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, 2009 for a description of risks and uncertainties relevant to our business, including our exploration activities.
Tethys Petroleum Limited Interim Consolidated Financial Statements (Unaudited) June 30, 2010 Tethys Petroleum Limited Consolidated Statement of Financial Position (Unaudited) As at June 30, December 31, 2010 2009 $'000 $'000 Non-current assets Property, plant and equipment 75,918 73,171 Intangible assets 32,317 24,378 Investments 686 659 Prepaids and other receivables 9,344 5,171 Loan receivable from jointly controlled entity 28,692 21,727 ----------------------------------- 146,957 125,106 ----------------------------------- Current assets Inventories 2,350 2,368 Prepaids and other receivables 2,965 2,311 Cash and cash equivalents 30,232 7,297 Derivative financial instruments - interest rate swap 1,578 - ----------------------------------- 37,125 11,976 ----------------------------------- Total assets 184,082 137,082 ----------------------------------- ----------------------------------- Equity attributable to shareholders Share capital 18,737 13,455 Share premium 206,410 153,748 Other reserves 30,975 27,775 Accumulated deficit (99,695) (88,374) ----------------------------------- Total equity 156,427 106,604 ----------------------------------- Non-current liabilities Deferred gain on sale of assets to jointly controlled entity 3,699 3,659 Financial liabilities - borrowings 8,139 9,324 Shares to be issued - 3,750 Deferred taxation 2,126 598 Trade and other payables 800 808 Asset retirement obligations 174 206 ----------------------------------- 14,938 18,345 ----------------------------------- Current liabilities Financial liabilities - borrowings 3,526 1,086 Derivative financial instruments - warrants 2,477 1,053 Derivative financial instruments - interest rate swap - 95 Deferred revenue 1,750 3,113 Trade and other payables 4,964 6,786 ----------------------------------- 12,717 12,133 ----------------------------------- ----------------------------------- Total liabilities 27,655 30,478 ----------------------------------- Total shareholders' equity and liabilities 184,082 137,082 ----------------------------------- ----------------------------------- Tethys Petroleum Limited Consolidated Statement of Comprehensive Loss (Unaudited) For the three and the six months ended June 30 For the 3 months ended For the 6 months ended June 30, June 30, June 30, June 30, Note 2010 2009 2010 2009 $'000 $'000 $'000 $'000 Sales and other operating revenues 6,030 2,797 8,146 3,326 Finance income 22 19 25 49 ----------------------------------------------- Total revenue and other income 6,052 2,816 8,171 3,375 Production expenses (1,938) (956) (2,875) (1,241) Depreciation, depletion and amortisation (1,358) (1,398) (2,050) (1,915) Exploration and evaluation expenditure written off (53) (109) (90) (126) Listing expenses (573) - (1,200) - Administrative expenses (6,631) (4,410) (11,405) (8,089) Foreign exchange loss - net (167) (689) (152) (2,483) Fair value gain (loss) on derivative financial instrument 2,973 (101) 472 (61) Loss from jointly controlled entity (93) - (244) - Finance costs (101) (746) (421) (1,069) ----------------------------------------------- Loss before taxation (1,889) (5,593) (9,794) (11,609) Taxation (1,433) - (1,527) - ----------------------------------------------- Net loss and comprehensive loss for the year attributable to shareholders (3,322) (5,593) (11,321) (11,609) ----------------------------------------------- ----------------------------------------------- Loss per share attributable to shareholders Basic and diluted (0.02) (0.06) (0.06) (0.15) No dividends were paid or are declared for the period (2009- $Nil). Tethys Petroleum Limited Consolidated Statement of Changes in Equity (Unaudited) Attributable to shareholders --------------------------------------------------- Share Share Accumulated Option Warrant Total capital premium deficit reserves reserves equity $'000 $'000 $'000 $'000 $'000 $'000 Balance at January 1, 2009 6,639 138,598 (66,654) 8,592 16,555 103,730 Comprehensive loss for the period - - (11,609) - - (11,609) Transactions with shareholders Issue of share capital 6,816 17,245 - - - 24,061 Cost of share issue - (1,981) - - (1,981) Share-based payments - - - 1,620 - 1,620 ------------------------------------------------------------ Total transactions with shareholders 6,816 15,265 - 1,620 - 23,700 ------------------------------------------------------------ Balance at June 30, 2009 13,455 153,863 (78,263) 10,212 16,555 115,822 Comprehensive loss for the period - - (10,111) - - (10,111) Transactions with shareholders Issue of share capital - - - - - Cost of share issue - (114) - - - (114) Share-based payments - - - 1,008 - 1,008 ------------------------------------------------------------ Total transactions with shareholders - (114) - 1,008 - 894 ------------------------------------------------------------ Balance at December 31, 2009 13,455 153,748 (88,374) 11,220 16,555 106,604 Comprehensive loss for the period - - (11,321) - - (11,321) Transactions with shareholders Issue of share capital 5,262 54,663 - - - 59,925 Cost of share issue - (2,169) - - - (2,169) Share-based payments - - - 3,260 - 3,260 Exercise of options 20 168 - (60) - 128 ------------------------------------------------------------ Total transactions with shareholders 5,282 52,662 - 3,200 - 61,144 ------------------------------------------------------------ Balance at June 30, 2010 18,737 206,410 (99,695) 14,420 16,555 156,427 ------------------------------------------------------------ ------------------------------------------------------------ Tethys Petroleum Limited Consolidated Statement of Cash Flows (Unaudited) For the three and the six months ended June 30, 2010 For the 3 months ended For the 6 months ended June 30, June 30, 2010 2009 2010 2009 $'000 $'000 $'000 $'000 Cash flow from operating activities Loss before taxation for the period (1,889) (5,593) (9,794) (11,609) Adjustments for Share based payments 2,067 916 3,260 1,620 Net finance cost 74 727 383 1,020 Unsuccessful exploration and evaluation expenditures - 109 - 126 Depreciation, depletion and amortization 1,358 1,398 2,050 1,915 Payment of royalties (78) - (78) - Fair value gain (loss) on derivative financial instrument (2,973) 101 (472) 61 Listing expenses - - 351 Net unrealised foreign exchange loss (32) (83) 1 1,167 Loss from jointly controlled entity 94 - 244 - Deferred revenue (454) - (1,363) - Net change in non-cash working capital (1,858) 1,243 (3,644) (7) ----------------------------------------------- Net cash used in operating activities (3,691) (1,182) (9,062) (5,707) ----------------------------------------------- The option reserve and warrant reserve are denoted together as "other reserves" on the interim consolidated statement of financial position. These reserves are non distributable. Cash flow from investing activities Interest received 22 19 25 49 Expenditure on exploration and evaluation assets (5,713) (3,056) (7,483) (9,006) Expenditures on property, plant and equipment (1,603) (1,722) (4,276) (6,009) Investment in restricted cash 1 (11) (27) (19) Acquisition of subsidiary, net of cash received - 532 - 532 Payments made on behalf of jointly controlled entity (4,889) - (7,169) - Movement in advances to construction contractors (2,173) 234 (3,200) 1,154 Value added tax receivable (873) 31 (1,324) (44) Net change in non-cash working capital 742 85 732 178 ----------------------------------------------- Net cash used in investing activities (14,486) (3,888) (22,722) (13,165) ----------------------------------------------- Cash flow from financing activities Proceeds from issuance of short-term borrowings - 2,500 - 2,500 Repayment of short-term borrowings - (2,500) - (2,500) Proceeds from issuance of long-term borrowings - - 1,840 - Repayment of long-term borrowings (358) (152) (705) (364) Interest paid on long-term borrowings and other non- current payables (182) (230) (375) (392) Other non-current liabilities (75) (20) (145) (42) Proceeds from issuance of equity, net of issue costs 112 18,019 54,134 18,019 ----------------------------------------------- Net cash generated from financing activities (503) 17,617 54,749 17,221 ----------------------------------------------- Effects of exchange rate changes on cash and cash equivalents (15) 36 (30) - Net increase / (decrease) in cash and cash equivalents (18,695) 12,583 22,935 (1,651) Cash and cash equivalents at beginning of the period 48,927 7,966 7,297 22,200 ----------------------------------------------- Cash and cash equivalents at end of the period 30,232 20,549 30,232 20,549 ----------------------------------------------- -----------------------------------------------
Contacts: Tethys Petroleum Limited Sabin Rossi Vice President Investor Relations Office: +1 416 572 2065 +1 416 572 2201 (FAX) info@tethyspetroleum.com www.tethyspetroleum.com In Kazakhstan PG Communications Ardak Akanov, Managing Director Office phone/fax: +7 (727) 272 8867 +7 (727) 272 8237, +7 (727) 272 7745 development@pressclub.kz In Asia-Pacific Quam IR Anita Wan, Associate Director Office phone/fax: + (852) 2217-2999 anita.wan@quamgroup.com
SOURCE: Tethys Petroleum Limited
mailto:info@tethyspetroleum.com http://www.tethyspetroleum.com mailto:development@pressclub.kz mailto:anita.wan@quamgroup.com