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Tethys Petroleum Ltd V.TPL

Alternate Symbol(s):  TETHF

Tethys Petroleum Limited is an oil and gas exploration and production company focused on Central Asia and the Caspian Region with projects in Kazakhstan. Through its subsidiaries, TethysAralGas LLP and Kul-Bas LLP, it operates over four contracts in the North Ustyurt basin to the west of the Aral Sea adjacent to the prolific Pre-Caspian basin. It has a 100% working interest in the Kyzyloi Production Contract (449 square kilometers (km2)), Akkulka Exploration License and Contract (827 km2), Akkulka Production Contract (396 km2) and Kul-Bas Exploration and Production Contract (7,632 km2). The Kul-Bas exploration and production contract area surrounds the Akkulka block, which has an exploration area of over 7,632 km2. Kyzyloi and Akkulka gas development fields are tied into the Bukhara-Urals gas pipeline by an over 56-kilometer pipeline owned and built by the Company. The Doris oil field provides over two oil-bearing zones, the lower zone and an upper, lower cretaceous sandstone zone.


TSXV:TPL - Post by User

Bullboard Posts
Post by Intravires69on Mar 25, 2011 11:15pm
283 Views
Post# 18344028

Kasakhstan Fiscal Regime

Kasakhstan Fiscal Regime

Here is the comment from Jupiter Energy - a Kazakhstan Junior.... dated March 2011

"Kazakhstan fiscal regime

The Kazakhstan fiscal regime for oil has four levels of taxation:

1.                 Mineral Extraction Tax (5-18% based on volume) but only half the tax if the output is sold domestically

2.                 Economic  Export Rent of 7-32% linked to the price of oil.  It's calculated net of opex and transport costs. (my comment  I assume opex means operating costs. This  appears significant because the take-back split at least is after cost)  

3.                 Income Tax, currently 20% but reducing  to 15% by 2014 and,

4.                 Excess  Profit Tax.  A marginal  tax from 10-60% when the ratio of annual  income to annual deductions increases from 1.25x to  1.7x

5.                  In addition, oil producers have a domestic Market Obligation to sell up to 20% of output at prices 1/3rd of world  oil prices.

The effective tax rate will obviously depend on  a range of factors  but  is on the 50-70% range.  While high, it is better than the Russian or Indonesian fiscal regimes which effectively take 80-80% tax."  

So, it would  appear  that  a straight 82% is  the worst scenario. Oilandgas,  You also indicated in one of your earlier posts that there was  a sliding  scale  regarding the take-back - assuming production levels and  brent crude price levels.  Lockstock also questioned whether the most  penal tax consequences would attach themselves to  a junior producer.

While I take nothing as gospel , I take notice of  Jupiter' s value proposition :    

 

 Value Proposition

? On a 2P/EV multiple JPR appears well priced now and is expected to provide

improved value with anticipated reserves upgrade

? Currently $US6 per barrel 2P reserves of 8.6mmbbls

This is only on 2P reserves and they value at $6.00 per barrel.  And, for Doris anyway  this is perhaps light sweet crude which is worth more - (see Darcy comments)

When I add it all up - TPL will explode!!!!!

I am trying to get a handle on valuation and I appreciate oilandgas's  input  because e is clearly  researching  this issue.  It is interesting that Jupiter Energy value;s itself at $6.00 per barrel at P2 level?

Bullboard Posts