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HONG KONG, Mar 31, 2013 - (ACN Newswire) - Tethys Petroleum Limited ("Tethys" or the "Company") today announced its Annual Results for the period ended December 31, 2012. The financials are highlighted by a 66% increase in annual oil and gas revenue and the first year in which the Company has generated a cash profit.1
Financial Highlights
-- Oil and gas sales of USD38.11 million, an increase of 66% on 2011
-- A cash profit1 for the year of USD3.42 million compared to a cash loss1 of USD3.93 million in 2011
-- Increase in oil and gas revenues from USD6.49 million (Q1) to USD11.43 million (Q4) and from a cash loss1 of USD1.65 million (Q1) to a cash profit1 of USD2.34 million (Q4)
-- USD1.36 million net cash generated from operating activities compared to USD12.56 million used in operating activities in 2011
-- Net cash used in investing activities of USD15.73 million compared to USD52.20 million in 2011
-- Accounting Loss for the year of USD20.90 million, a decrease of 23% on 2011
Production and Reserves Highlights
-- Oil production (before the deduction of local governments' share or taxation) increased from 2,148 bopd (2011) to 3,371 bopd (2012), an increase of 57% and has increased over the year to reach a rate of 4,381 bopd in Q4. Similarly boe production has increased to 6,313 boepd in 2012 compared to 5,656 boepd in 2011
-- In the reserve audit report produced by Gustavson Associates, and effective date December 31, 2012, the following gross figures are2:
1P - 14.8 MMboe
2P - 26.1 MMboe
3P - 41.0 MMboe
With 1P oil reserves more than replaced due to strong Doris field performance (Reserve Replacement Ratio of
126%)
-- NPV10 of the Company's 2P Kazakh reserves (from Gustavson) is USD310 million
Operational Highlights
Kazakhstan
-- Updated Kazakh independent Resource Report estimates the gross unrisked recoverable mean prospective oil resources to be 1.23 billion barrels of oil plus 634 Bcf of natural gas
-- Aral Oil Terminal commenced operations, Phase 2 completed and awaiting final State approval
-- Two new gas supply contracts signed effectively doubling the price for 2013 to USD65 (USD72.8 including
VAT) per 1,000 cubic metres (previously USD32.5 including VAT for the Kyzyloi and Akkulka Fields)
-- Akkulka Exploration Contract term extended to March 2015
-- Kul-Bas Exploration and Production Contract term extended to November 2015 (subject to usual contract amendments)
Tajikistan
-- Signed Farm Out Agreement ("FOA") for the Bokhtar Production Sharing Contract ("PSC") with subsidiaries of Total S.A. ("Total") and the China National Oil and Gas Exploration and Development Corporation ("CNODC")
-- Updated Tajik independent Resource Report estimates gross unrisked mean recoverable resources to be 27.5 billion boe
-- Completed acquisition of 501 km of new seismic data
Uzbekistan
-- Signed Production Enhancement Contract for a new oil field, the Chegara Group of Fields, in Uzbekistan
-- Signed MOU to provide the framework for a Joint Study and the negotiation process for an Exploration Agreement relating to certain exploration blocks in the North Ustyurt Basin of Uzbekistan - the same basin which contains the Doris oil discovery
Operational Update
Tajikistan
It is expected that the FOA for the Company's Tajik assets will be completed in Q2 2013. The Tajik Government has approved the participation of subsidiaries of Total and CNPC in the Bokhtar Production Sharing Contract and remaining points are now being finalized. All three parties are working hard jointly to achieve closing as soon as possible.
As part of the transaction, the new Joint Operating Company will present a comprehensive work programme upon completion of the FOA for the remainder of 2013.
Kazakhstan
In Kazakhstan in 2013, the Company plans to drill up to three wells targeting oil on the Akkulka Exploration Contract area.
The first well is firm and is expected to commence drilling in June 2013 and will target the Doto prospect nearby to the Doris oil discovery. This well has a relatively low risk in the exploration portfolio and is targeting mean unrisked prospective recoverable resources of 21.6 MMbbls (Gustavson Associates) in the Cretaceous and Upper Jurassic.
Following the increase in gas price in early 2013, further work will be carried out to increase production including workovers on the AKK05 and AKK14 wells in Q2 which will be tied in to the gas pipeline thereafter. A further programme will follow to include tie-in of additional wells and the drilling of further shallow gas exploration prospects in the area which are clearly defined on the seismic data as strong amplitude anomalies.
It is planned to test (including acidisation) the previously drilled KBD01 ("Kalypso") well, which contains a 100 metre (328 feet) gross section in Permo-Carboniferous limestones which is interpreted to contain moveable hydrocarbons based on wireline logs and mud log data. It is also planned to acquire additional seismic this year on the Kul-Bas and Akkulka Contract Areas.
The activities planned in Kazakhstan as described above are contingent on availability of funding, and the Company will provide a more detailed capital programme breakdown on closing of the Tajikistan farm-out, which is expected in Q2.
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 2012 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 10:00 Eastern Daylight Savings Time (15:00 British Summer Time) on Tuesday, April 2, 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 50738618. Please call in about 10 minutes before the starting time in order to be patched into the call.
KY1-1108, Cayman Islands
Webcast:
The call is being webcast and can be accessed at:
http://www.media-server.com/m/acs/891167705996eb72a5ec5a2fedc7c218
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.
Cautionary Statements:
This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to our operations, completion of the FAO and drilling, testing and well workover programmes for 2013. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including the risk that completion of the FOA will be delayed beyond Q2 and the risk of changes in our drilling, testing and well workover programmes. 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. 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.
The references in this press release to "prospective resources" means those quantities of petroleum estimated, as of June 30, 2012, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. There is no certainty that any portion of these resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of these resources.
The resources estimates contained or referred to are estimates only and are not meant to provide a determination as to the volume or value of hydrocarbons attributable to the Company's properties. There are numerous uncertainties inherent in estimating quantities of resources and cash flows that may be derived, including many factors that are beyond the control of the Company. The following is a nonexhaustive list of factors which may have a significant impact on the above estimates of prospective resources: despite the classification that they are as yet undiscovered but may be potentially recoverable the Company may be unable to carry out the development or their potential recovery; the activity may not be economically viable; the Company may not have sufficient capital or time to develop them; there may be no market or transportation routes for the production; legal, contractual, environmental and governmental concerns might not allow for the recovery being undertaken; reservoir characteristics might prevent recovery. The recovery of the resources is subject to the following risks and uncertainties: market fluctuations, the proximity and capacity of oil and gas pipelines and processing equipment, government regulation, political issues, export issues, competing suppliers, operational issues (exploration, production, pricing, marketing and transportation), extensive controls and regulations imposed by various levels of government, lack of capital or income, the ability to drill productive wells at acceptable costs, the uncertainty of drilling operations, factors such as delays, accidents, adverse weather conditions, and the availability of drilling rigs and the delivery of equipment.
Non GAAP Measures:
This press release includes references to Non GAAP measures, including "cash profit" and "cash loss." These terms do not have any standardized meaning under IFRS. Cash profit (cash loss) is also referred to as profit (loss) before non cash items in the Management Discussion & Analysis for the year ended December 31, 2012 and is defined as revenue less production costs, administrative costs, listing expenses, business development expenses and foreign exchange. See page 11 to the Management Discussion & Analysis for the year ended December 31, 2012 for a reconciliation of these amounts to IFRS measures.
Contact:
North America
Sabin Rossi - All Investor Queries
Vice President Investor Relations
Office: +1 416-941-1257
+1 416-947-0167(FAX)
Europe
Veronica Seymour - All Media Queries
Vice President Corporate Communications
Office: +44 1481 725911
+44 1481 725922(FAX)
Corporate Brokers:
FirstEnergy
Hugh Sanderson / David Van Erp
Office: + 44 207 448 0200
Seymour Pierce
Richard Redmayne / Stewart Dickson
Office: +44 207 107 8000
Asia Pacific: Quam IR
Anita Wan
Office phone/ fax: +852 2217 2999
FTI Consulting
Ben Brewerton / Natalia Erikssen
Office: +44 207 831 3113
info@tethyspetroleum.com
http://www.tethyspetroleum.com
m.tethyspetroleum.com
Topic: Press release summary
Source: Tethys Petroleum Limited
Sectors: Gas & Oil, Daily Finance, Energy, Alternatives
https://www.acnnewswire.com
From the Asia Corporate News Network
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