New analyst on board Of course it would appear production is now 7000 boed in Kaz. This is the kind of continuing exposure we need.
From the ADVFN site:
Seymour Pierce
Full of eastern promise
Tethys Petroleum is focused on oil and gas exploration and production in Central Asia. This highly prolific region continues to yield significant rewards, most recently illustrated through the company’s 27.5bnbbl resource upgrade in Tajikistan. With near term production also due to ramp up in Kazakhstan, we feel the current share price represents compelling value for investors.
Significant resource upgrade
Tethys recently announced its latest resource estimates for its Tajikistan operations. The numbers demonstrate a significant upgrade of the company’s mean recoverable prospective resource base. The headline unrisked figure of 27.5bnbbls consists of 114tcf of gas, and 8.5bnbbls of oil and condensate, suggesting the asset is greater than the remaining resources in the North Sea. Considering that Tethys now has an 85% interest in the Bokhtar PSC following the recent acquisition of an additional 34% stake, the upgrade further illustrates management’s ability to seek high value yielding assets.
Near term production could peak at 6000bopd
To date, over 13,000bopd has been tested from exploration and appraisal wells in and around the company’s Kazakh operations. We therefore believe that a sustainable production level of 5-6,000bopd can realistically be achieved from these wells. Although the company currently sells to the domestic market, the field economics even at this pricing level illustrates the commerciality of the company’s assets.
Unique positioning
Tethys is the only independent oil and gas company with operations in three of the Central Asian Republics with exploration and production in Kazakhstan, Tajikistan and Uzbekistan. All Tethys' projects are located in close proximity to the main regional pipelines allowing the company to tie in cost-effectively and enjoy diversification of supply.
Valuation and recommendation
Our valuation illustrates that Tethys is currently trading below its core asset value, with the market not currently attributing value to its contingent resources or the significant prospective resource upgrade in Tajikistan. On this basis, we initiate coverage with a BUY recommendation, with a pre drill target price of 72p.