GRAND CAYMAN, CAYMAN ISLANDS--(Marketwired - May 15, 2014) - Tethys Petroleum Limited ("Tethys" or the "Company") (TSX:TPL) (LSE:TPL) today announced its First Quarter 2014 Financial Results.
Corporate Highlights
- Drilling of a further 3 successful shallow gas exploration wells: AKK17, AKK18 and AKK19. These wells have a predicted test capacity of over 20 million cubic feet (570,000 cubic metres) of gas per day based on nearby similar well results. Further shallow well drilling is planned as well as tie in of these and other wells to increase production of natural gas
- Independent report commissioned on the "Klymene" prospect in Kazakhstan estimated Unrisked Mean Recoverable Oil Resources at over 400 million barrels. The Klymene exploration well is planned for later this year following successful completion of the recently announced SinoHan acquistion
- Completion of the acquisition of a 56% interest in Blocks XIA, XIM and XIN, in eastern Georgia; areas which the Company believes have good potential for both unconventional and conventional oil, with independent estimates giving some 1.8 billion barrels oil equivalent of Unrisked Mean Recoverable Resources to Tethys' interest
- Selection of seismic contractor for the next phase of the geophysical acquisition on the Bokhtar PSC in Tajikistan by the joint Tethys/TOTAL/CNPC joint operating company BOC
- Successful capital raise of USD15 million completed in May, 2014
Financial Highlights
- Loss for the period from continuing operations reduced 6% year-on-year to USD 4.4 million (Q1 2013: USD4.7 million)
- Basic & diluted loss per share of USD0.01 cent from continuing operations (Q1 2013: USD0.02 cents)
- Capital Expenditure of USD7.3 million (Q1 2013: USD1.3 million)
- Cash and cash equivalents at the end of Q1 2014 of USD13.7 million (Q1 2013: USD1.4 million)
- Oil and gas revenue from continuing operations of USD6.8 million - a decrease of 35% on the comparative period (Q1 2013: USD10.5 million) primarily due to trucking issues related to weather and issues with downhole pumps (now largely resolved)
The full Quarterly Results together with Management's Discussion and 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.
The Company's First Quarter 2014 financial statements are prepared under International Financial Reporting Standards ("IFRS").
The above highlights along with other 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 9:00AM EDT (2:00PM BST) on Friday, May 16, 2014. The North American conference call number is 800-299-8538 and the outside North America conference call number is +1-617-786-2902. The conference call code to use is 55303387. 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.media-server.com/m/acs/3dc574fb9ff21e9ee30eaa5e61b134aa
Tethys is focused on oil and gas exploration and production activities in Central Asia and the Caspian Region. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.
| | |
| Tethys Petroluem Limited | |
| Condensed Consolidated Statement of Financial Position (unaudited) | |
| (in thousands of US dollars) | |
| | |
| | As at | |
| | March 31,
2014 | | December 31,
2013 | |
| Non-current assets | | | | |
| Deferred tax | 317 | | 322 | |
| Intangible assets | 42,457 | | 31,074 | |
| Property, plant and equipment | 15,088 | | 15,291 | |
| Restricted cash | 666 | | 660 | |
| Investment in joint arrangements | 4 | | 4 | |
| | 58,532 | | 47,351 | |
| Current assets | | | | |
| Trade and other receivables | 1,369 | | 1,358 | |
| Advances | - | | 4,000 | |
| Cash and cash equivalents | 13,698 | | 25,109 | |
| Restricted cash | 489 | | 475 | |
| Assets of a disposal group classified as held for sale | 158,793 | | 156,325 | |
| | 174,349 | | 187,267 | |
| | | | | |
| Total assets | 232,881 | | 234,618 | |
| | | | | |
| Equity | | | | |
| Share capital | 29,956 | | 28,756 | |
| Share premium | 311,797 | | 307,295 | |
| Other reserves | 42,740 | | 42,621 | |
| Accumulated deficit | (187,382 | ) | (182,533 | ) |
| Non-controlling interest | 6,402 | | 6,454 | |
| Total equity | 203,513 | | 202,593 | |
| | | | | |
| Non-current liabilities | | | | |
| Financial liabilities - borrowings | 5,744 | | - | |
| | 5,744 | | - | |
| Current liabilities | | | | |
| Financial liabilities - borrowings | 971 | | 4,965 | |
| Derivative financial instruments - warrants | 36 | | 17 | |
| Current taxation | 7 | | 144 | |
| Trade and other payables | 3,609 | | 4,946 | |
| Provisions | 377 | | 520 | |
| Liabilities of a disposal group classified as held for sale | 18,624 | | 21,433 | |
| | 23,624 | | 32,025 | |
| | | | | |
| Total liabilities | 29,368 | | 32,025 | |
| | | | | |
| Total equity and liabilities | 232,881 | | 234,618 | |
| | | | | |
| | |
| | |
| Tethys Petroleum Limited | |
| Condensed Consolidated Statement of Comprehensive Income (unaudited) | |
| (in thousands of US dollars) | |
| | |
| | Three months ended March 31, | |
| | 2014 | | 2013
Restated | |
| | | | | |
| Sales and other revenues | 6,781 | | 10,474 | |
| | | | | |
| Sales expenses | (744 | ) | (644 | ) |
| Production expenses | (3,798 | ) | (3,360 | ) |
| Depreciation, depletion and amortization | (151 | ) | (4,383 | ) |
| Business development expenses | (740 | ) | (368 | ) |
| Administrative expenses | (5,126 | ) | (4,490 | ) |
| Transaction costs of assets held for sale | (15 | ) | - | |
| Share based payments | (119 | ) | (331 | ) |
| Foreign exchange gain/(loss) - net | 7 | | 131 | |
| Fair value loss on derivative financial instrument - net | (19 | ) | (430 | ) |
| (Loss)/profit from jointly controlled entity | (1,203 | ) | 257 | |
| Finance costs - net | (603 | ) | (685 | ) |
| | | | | |
| Loss before taxation from continuing operations | (5,730 | ) | (3,829 | ) |
| | | | | |
| Taxation | 1,321 | | (854 | ) |
| | | | | |
| Loss for the period from continuing operations | (4,409 | ) | (4,683 | ) |
| | | | | |
| (Loss)/profit for the period from discontinued operations net of tax |
(492 | ) |
356 | |
| Loss and total comprehensive income for the period |
(4,901 | ) |
(4,327 | ) |
| Loss and total comprehensive income attributable to:Shareholders |
(4,849 | ) |
(4,229 | ) |
| Non-controlling interest | (52 | ) | (98 | ) |
| Loss and total comprehensive income for the year |
(4,901 | ) |
(4,327 | ) |
| Loss per share attributable to shareholders: | | | | |
| Basic and diluted - from continuing operations | (0.01 | ) | (0.02 | ) |
| Basic and diluted - from discontinued operations | - | | - | |
| | |
| | |
| Tethys Petroleum Limited | |
| Condensed Consolidated Statement of Cash Flows (unaudited) | |
| (tabular amounts in thousands of US dollars) | |
| | |
| | Three months ended March 31, | |
| | 2014 | | 2013 | |
| Cash flow from operating activities | | | | |
| Loss before taxation from continuing operations | (5,730 | ) | (3,829 | ) |
| (Loss)/profit before tax from discontinued operations | (492 | ) | 469 | |
| | | | | |
| Adjustments for | | | | |
| | Share based payments | 119 | | 331 | |
| | Net finance cost | 603 | | 682 | |
| | Depreciation, depletion and amortization | 151 | | 4,979 | |
| | Fair value gain on derivative financial instruments | 19 | | 430 | |
| | Net unrealised foreign exchange (gain)/loss | 11 | | (48 | ) |
| | (Loss)/profit from jointly controlled entity | 1,203 | | (257 | ) |
| | Movement in deferred revenue | - | | (1,614 | ) |
| | Movement in provisions | (142 | ) | - | |
| | Net change in working capital | 91 | | 1,419 | |
| Cash (used in)/generated from operating activities | (4,167 | ) | 2,562 | |
| | Corporation tax paid | (138 | ) | - | |
| Net cash (used in)/generated from operating activities | (4,305 | ) | 2,562 | |
| Cash flow from investing activities | | | | |
| Interest received | 50 | | 50 | |
| Expenditure on exploration and evaluation assets | (3,217 | ) | (234 | ) |
| Expenditures on property, plant and equipment | (4,049 | ) | (1,030 | ) |
| Movement in restricted cash | - | | (18 | ) |
| Movement in advances to construction contractors | 953 | | 42 | |
| Movement in value added tax receivable | (269 | ) | 884 | |
| Net change in working capital | 258 | | (945 | ) |
| Net cash used in investing activities | (6,274 | ) | (1,251 | ) |
| | | | | |
| Cash flow from financing activities | | | | |
| Proceeds from issuance of borrowings, net of issue costs | 6,707 | | 737 | |
| Repayment of borrowings | (6,030 | ) | (1,862 | ) |
| Interest paid on borrowings | (484 | ) | (561 | ) |
| Proceeds from issuance of equity | - | | 48 | |
| Share issue costs | (48 | ) | - | |
| Movement in other non-current liabilities | (71 | ) | (71 | ) |
| Net cash generated from/(used in) financing activities | 74 | | (1,709 | ) |
| Effects of exchange rate changes on cash and cash equivalents | 99 | | 6 | |
| Net decrease in cash and cash equivalents | (10,406 | ) | (392 | ) |
| Cash and cash equivalents at beginning of the period | 25,731 | | 1,750 | |
| Cash and cash equivalents at end of the period | 15,325 | | 1,358 | |
| Cash and cash equivalents at end of the period comprises: | | | | |
| Cash in assets of a disposal group held for sale | 1,627 | | - | |
| Cash and cash equivalents | 13,698 | | 1,358 | |
| | 15,325 | | 1,358 | |