GRAND CAYMAN, CAYMAN ISLANDS, Nov 12, 2010 (MARKETWIRE via COMTEX) —
Tethys Petroleum Limited (“Tethys” or the “Company”) (TSX: TPL) today announced its third quarter 2010 financial results. The results are highlighted by a 30% increase in revenues over the third quarter of last year.
The Company reports financial results in accordance with International Financial Reporting Standards (“IFRS”).
RECENT HIGHLIGHTS
-- Tethys recently completed a public offering for gross proceeds of US$100 million in October 2010. -- Tethys commenced sales of oil from Kazakhstan early oil production scheme that commenced on September 10, 2010, which is the first step in monetising the Doris oil discovery and providing essential logistical data to plan for the step up in production planned for Q2 2011. (Note: According to IFRS the income generated from sales during the test production stage is not included in the Company's production revenue but is offset against expenditure.) -- Memorandum of Understanding ("MOU") with the Uzbek State oil and gas company, National Holding Company "Uzbekneftegaz" ("UNG") signed in September 2010 to work towards assigning Tethys new fields to work on. -- The Akkulka (Phase 2)gas contract was signed in September 2010 with Asia Gas NG LLP at a price of US$38 per Mcm (including VAT) for sale on the domestic market. The contract runs for a period of two years with an average daily contract quantity for Phase 2 of approximately 500 Mcm. Sales of Phase 2 gas did not commence until October, 2010 and is not included in third quarter figures. -- Production revenues in Q3 2010 from Kazakhstan and Uzbekistan sales totalled some US$3.17 million compared to US$2.43 million in the same period in 2009, a 30% increase. Year to date figures were now US$11.32 million in 2010 against US$5.75 million in 2009. -- In Q3 2010 the Company recorded a net loss before taxation of US$5.89 million in the three months ended September 30, 2010 compared to a net loss of US$3.94 million in the three months ended September 30, 2009. -- Capital expenditure in Q3 2010, excluding the joint venture in Tajikistan, incurred in the quarter at US$11.95 million represented a 43% increase on the US$8.33 million incurred in the same period in 2009. This expenditure was mainly focused on the exploration and appraisal programme to ascertain the size, potential and commerciality of the oil discovery in Kazakhstan.
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 Monday, November 15, 2010. The North American conference call number is (800) 320-2978 and the outside North America conference call number is (617) 614-4923. The conference call code to use is 86864947. 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=3511259
Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Tajikistan, Kazakhstan 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, 2009 for a description of risks and uncertainties relevant to our business, including our exploration activities.
Tethys Petroleum Limited Consolidated Statement of Financial Position (Unaudited) As at September 30, December 31, 2010 2009 $'000 $'000 Non-current assets Property, plant and equipment 74,542 73,171 Intangible assets 44,835 24,378 Investments 770 659 Prepaids and other receivables 9,203 5,171 Loan receivable from jointly controlled entity 31,593 21,727 ------------------ ----------------- 160,943 125,106 ------------------ ----------------- Current assets Inventories 3,327 2,368 Trade and other receivables 3,558 2,311 Cash and cash equivalents 12,917 7,297 Derivative financial instruments - interest rate swap 1,336 - ------------------ ----------------- 21,138 11,976 ------------------ ----------------- Total assets 182,081 137,082 ------------------ ----------------- ------------------ ----------------- Equity attributable to shareholders Share capital 18,797 13,455 Share premium 207,231 153,748 Other reserves 31,811 27,775 Accumulated deficit (106,813) (88,374) ------------------ ----------------- Total equity 151,026 106,604 ------------------ ----------------- Non-current liabilities Deferred gain on sale of assets to jointly controlled entity 3,699 3,659 Financial liabilities - borrowings 8,003 9,324 Shares to be issued - 3,750 Deferred taxation 3,320 598 Trade and other payables 762 808 Asset retirement obligations 179 206 ------------------ ----------------- 15,963 18,345 ------------------ ----------------- Current liabilities Financial liabilities - borrowings 3,515 1,086 Derivative financial instruments - warrants 2,399 1,053 Derivative financial instruments - interest rate swap - 95 Current taxation 31 - Deferred revenue 2,439 3,113 Trade and other payables 6,708 6,786 ------------------ ----------------- 15,092 12,133 ------------------ ----------------- ------------------ ----------------- Total liabilities 31,055 30,478 ------------------ ----------------- Total shareholders' equity and liabilities 182,081 137,082 ------------------ ----------------- ------------------ ----------------- Tethys Petroleum Limited Consolidated Statement of Comprehensive Loss (Unaudited) For the three and the nine months ended September 30, 2010 For the 3 months ended For the 9 months ended September September 30, September 30, September 30, 30, 2010 2009 2010 2009 $'000 $'000 $'000 $'000 Sales and other operating revenues 3,173 2,426 11,319 5,752 Finance income 20 - 45 49 -------------------------------------------------------- Total revenue and other income 3,193 2,426 11,364 5,801 Production expenses (1,236) (748) (4,111) (1,989) Depreciation, depletion and amortisation (1,635) (1,120) (3,685) (3,035) Exploration and evaluation expenditure written off (5) (14) (94) (140) Listing expenses (31) - (1,230) - Administrative expenses (5,365) (4,191) (16,771) (12,342) Foreign exchange gain (loss) - net (184) 147 (337) (2,275) Fair value loss on derivative financial instruments - net (738) (160) (266) (221) Loss from jointly controlled entity (178) - (422) - Finance costs 288 (284) (134) (1,353) -------------------------------------------------------- Loss before taxation (5,891) (3,944) (15,686) (15,554) Taxation (1,227) - (2,753) - -------------------------------------------------------- Net loss and comprehensive loss for the year attributable to shareholders (7,118) (3,944) (18,439) (15,554) -------------------------------------------------------- Loss per share attributable to shareholders Basic and diluted (0.04) (0.03) (0.10) (0.16) No dividends were paid or are declared for the period (2009- $Nil). Tethys Petroleum Limited Consolidated Statement of Cash Flows (Unaudited) For the three and the nine months ended September 30, 2010 For the 3 months ended For the 9 months ended September 30, September 30, 2010 2009 2010 2009 $'000 $'000 $'000 $'000 Cash flow from operating activities Loss before taxation for the period (5,891) (3,944) (15,686) (15,554) Adjustments for Share based payments 836 768 4,096 2,388 Net finance cost (303) 284 80 1,305 Unsuccessful exploration and evaluation expenditures - 14 - 140 Depreciation, depletion and amortization 1,635 1,120 3,685 3,035 Payment of royalties - - (78) - Fair value loss on derivative financial instruments - net 738 160 266 221 Listing expenses - - 351 Net unrealised foreign exchange loss (13) 65 (12) 1,200 Loss from jointly controlled entity 178 - 422 - Deferred revenue 689 - (674) - Net change in non-cash working capital 3,233 (10) (411) (17) ---------------------------------------------------- Net cash used in operating activities 1,102 (1,543) (7,961) (7,282) ---------------------------------------------------- Cash flow from investing activities Interest received 20 - 45 49 Expenditure on exploration and evaluation assets (11,532) (4,530) (19,015) (13,537) Expenditures on property, plant and equipment (418) (3,807) (4,694) (9,816) Investment in restricted cash (84) (7) (111) (27) Acquisition of subsidiary, net of cash received - - - 532 Payments made on behalf of jointly controlled entity (3,079) - (10,248) - Movement in advances to construction contractors 1,452 126 (1,748) 1,280 Value added tax receivable (1,600) (350) (2,924) (395) Net change in non-cash working capital (2,659) (1,189) (1,927) (1,011) ---------------------------------------------------- Net cash used in investing activities (17,900) (9,757) (40,622) (22,925) ---------------------------------------------------- Cash flow from financing activities Proceeds from issuance of short-term borrowings - - - 2,500 Repayment of short-term borrowings - - - (2,500) Proceeds from issuance of long-term borrowings - - 1,840 - Repayment of long-term borrowings (371) (230) (1,076) (594) Interest paid on long- term borrowings and other non-current payables (364) (182) (739) (574) Other non-current liabilities (75) (22) (220) (65) Proceeds from issuance of equity, net of issue costs 306 (68) 54,440 17,951 ----------------------------------------------------- Net cash generated from financing activities (504) (502) 54,245 16,718 ----------------------------------------------------- Effects of exchange rate changes on cash and cash equivalents (13) (36) (42) - Net increase / (decrease) in cash and cash equivalents (17,315) (11,838) 5,620 (13,489) Cash and cash equivalents at beginning of the period 30,232 20,549 7,297 22,200 ----------------------------------------------------- Cash and cash equivalents at end of the period 12,917 8,711 12,917 8,711 -----------------------------------------------------
Contacts: Tethys Petroleum Limited Sabin Rossi Vice President Investor Relations +1 416 572 2065 +1 416 572 2201 (FAX) info@tethyspetroleum.com www.tethyspetroleum.com Tethys Petroleum Limited TD Canada Trust Tower 161 Bay Street, 27th Floor Toronto N5J 2S1, Canada Mobile site: http://m.tethyspetroleum.com In Asia-Pacific Quam IR Anita Wan Associate Director + (852) 2217-2999 (FAX) anita.wan@quamgroup.com Quam IR 3/F Fung House Moving 19-20 Connaught Road Central, Hong Kong Hong Kong
SOURCE: Tethys Petroleum Limited
mailto:info@tethyspetroleum.com http://www.tethyspetroleum.com http://m.tethyspetroleum.com mailto:anita.wan@quamgroup.com