Tethys Petroleum Limited has announced its second quarter 2014 financial results and activity update.
- Reduced loss from continuing operations for Q2 2014 by 17% to US$ 3.7 million (Q1 2014: US$ 4.4 million).
- Revenue for Q2 2014 of US$ 7.1 million increased by 5% (Q1 2014: US$ 6.8 million).
- Production expenses for Q2 2014 of US$ 3.2 million reduced by 15% (Q1 2014: US$ 3.8 million).
- Capital expenditure of US$ 4.8 million (Q1 2014: US$ 7.3 million).
- Administrative expenses were slightly down from the previous quarter with continuing actions being taken to reduce spend where practical.
- Testing of four successful shallow gas exploration wells: AKK17, AKK18, AKK19 and AKK20, which tested at an aggregate rate of approximately 650 million m3/d from the Tasaran horizon.
- Extension of the Kyzyloi Production Contract for a further 15 years to June 2029, allowing further time for development of this area.
- Renewal of Kazakh gas sale contracts through December 2014.
- Raised US$ 15 million of equity finance through the issue of 36,894,923 new ordinary shares for the shallow gas programme in Kazakhstan.
- Release of the US$ 3.88 million deposit placed into escrow with respect to the conditional sale to SinoHan Oil & Gas Investment of a 50% interest in the company's Kazakhstan business.
Denise Lay, Director and Chief Financial Officer of Tethys, commented: "During Q2, the company concentrated on advancing its shallow gas programme in Kazakhstan, which is proceeding very well and which should result in significantly increased cash flow in 2015, and on meeting its commitments on the Tajikistan joint project with Total SA and CNPC as well as maintaining its position in Georgia.
“We continue to scrutinise our costs, particularly operating and administration costs, in order to maintain an efficient and cost effective operation of our business. Some further cost reductions are expected, however, we are a public company, listed on the main boards of two major stock exchanges, with exploration and production activities spanning three countries and working in challenging operating and political environments.
“Although it may be possible to achieve further efficiencies and cost reductions, if the company is to maintain and develop its high potential asset base then there is a cost associated with this. Our active strategy to bring in partners to our projects has already borne fruit, with Total SA and CNPC in Tajikistan, the SinoHan deal in Kazakhstan (in which SinoHan have just released their escrowed deposit), and we have ongoing discussions on Georgia.
“Such deals will reduce costs to Tethys, and have additional benefits such as cost recoveries from the use of our technical personnel by the Tajik joint venture. Further development of this strategy should see additional reductions in Tethys' costs whilst maintaining and advancing the company's substantial exciting asset portfolio."
The full financial and operational Q2 2014 results can be accessed on the Tethys Petroleum website.
Adapted from press release by Katie Woodward
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/15082014/tethys-petroleum-q2-2014-results-1279/