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Tethys Petroleum Limited: Tethys Petroleum Limited: First Quarter 2009 Financial Results

^{Published on 2009-05-19 08:28:46, Last Modified on 2009-05-19 08:30:30 - Market Wire}
 

ST. PETER PORT, GUERNSEY--(Marketwire - May 19, 2009) - Tethys Petroleum Limited ("Tethys" or the "Company" (TSX:TPL)) today announced its first quarter 2009 financial results. These are the first results reported by the Company in accordance with International Financial Reporting Standards ("IFRS"). The Company's previous financial results have been reported in accordance with United States Generally Accepted Accounting Principles ("US GAAP").

HIGHLIGHTS

- Revenue generated in the three months to March 31, 2009 was US$529,000 compared to US$1,431,000 in the same period of 2008 as a result of the Kyzyloi production being shut down in January and February 2009 due to the installation work on compressors.

- Capital expenditure of US$10,237,000 was incurred in the three months to March 31, 2009 compared to US$3,541,000 for the same period in 2008.

- A net loss of US$5,960,000 was recorded in the three months to March 31, 2009 compared to a loss of US$4,640,000 for the same period in 2008.

The Accounting Standards Board ("AcSB") confirmed in February 2008 that International Financial Reporting Standards ("IFRS") will be used for Canadian publicly accountable enterprises for financial periods beginning on and after January 1, 2011 but as a foreign issuer, Tethys took the decision to meet these standards early.

The financial statements for the three month period ended March 31, 2009 are the first to be prepared under IFRS and are available in full on [ www.sedar.com ]. The additional work involved in effecting and reconciling this switch resulted in the auditors' review not being complete at the time when the financial statements were filed. The review is anticipated to be completed within a matter of days.

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.

See our Annual Information Form for the year ended December 31, 2008 for a description of risks and uncertainties relevant to our business including our exploration and development activities.

Tethys Petroleum Limited
Interim Consolidated Statement of Financial Position
(Unaudited)
As at March 31, 2009 and December 31, 2008
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(in thousands of US dollars)

 March 31, December 31,
 2009 2008
 $ $

Assets
Non-current assets
Intangible assets (note 10) 17,941 12,076
Property, plant and equipment (note 11) 74,227 69,839
Investments (note 12) 595 587
Other receivables (note 13) 4,532 6,357
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 97,295 88,859
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Current assets
Inventories 329 213
Trade and other receivables (note 13) 2,999 2,664
Cash and cash equivalents (note 14) 7,966 22,200
 ------------------------

 11,294 25,077
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Total assets 108,589 113,936
 ------------------------
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Equity and Liabilities
Equity attributable to shareholders
Share capital (note 18) 6,779 6,639
Share premium (note 18) 139,299 138,598
Other reserves 25,764 25,060
Accumulated deficit (72,969) (67,009)
 ------------------------

 98,873 103,288
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Liabilities
Non-current liabilities
Financial liabilities - borrowings (note 15) 5,680 6,072
Other non-current payables (note 16) 421 523
Provisions for other liabilities and
 charges (note 17) 374 465
 ------------------------

 6,475 7,060
 ------------------------

Current liabilities
Financial liabilities - borrowings (note 15) 978 853
Trade and other payables (note 16) 2,263 2,735
 ------------------------

 3,241 3,588
 ------------------------

Total liabilities 9,716 10,648
 ------------------------

Total shareholders' equity and liabilities 108,589 113,936
Commitments and contingencies (note 21) ------------------------
 ------------------------



Tethys Petroleum Limited
Interim Consolidated Statement of Comprehensive Loss
(Unaudited)
For the three months ended March 31
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(in thousands of US dollars)

 2009 2008
 $ $

Sales and other operating revenues (note 5) 529 1,431

Production expenditure (285) (67)
Depreciation, depletion and amortization (517) (1,105)
Exploration and evaluation expenditure written off (17) -
Administrative expenses (5,377) (4,025)
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Operating loss (note 6) (5,667) (3,766)

Finance income 30 167
Finance costs (323) (1,041)
 ---------------------

Loss before tax (5,960) (4,640)

Taxation (note 8) - -
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Total comprehensive loss for the period
 attributable to shareholders (5,960) (4,640)
 ---------------------
 ---------------------

Loss per share
Basic and diluted (note 9) (0.09) (0.10)
 ---------------------
 ---------------------

No dividends were paid or are proposed for the quarter (2008 - $Nil)
All operations were continuing throughout both periods


 2009 2008
 $ $

Cash flow from operating activities
Loss before income tax for the period (5,960) (4,640)
Adjustments for
 Share-based payments to employees (note 7) 704 841
 Net finance cost 293 874
 Unsuccessful exploration and evaluation
 expenditures (note 10) 17 -
 Depreciation, depletion and amortization (note 11) 517 1,105
 Net unrealised foreign exchange loss 1,154 17
 ---------------------

Operating cash flows before movements
 in working capital (3,275) (1,803)

Increase in trade and other receivables (note 13) (570) (730)
Decrease in trade and other payables (471) (265)
Decrease in inventories (116) -
 ---------------------

Cash used in operations (4,432) (2,798)

Interest received 30 167
 ---------------------

Net cash used in operating activities (4,402) (2,631)
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Cash flow from investing activities
Expenditure on exploration and evaluation
 assets (note 10) (5,950) (134)
Expenditures on other property, plant
 and equipment (note 11) (4,287) (3,407)
Investment in restricted cash (8) (105)
Advances to construction contractors 920 (1,285)
Value added tax receivable (75) 59
 ---------------------

Net cash used in investing activities (9,400) (4,872)
 ---------------------

Cash flow from financing activities
Proceeds from short-term borrowings (note 15) - 5,300
Repayment of long-term borrowings (note 15) (212) -
Interest paid on long-term borrowings
 and Historical Cost (162) -
Other non-current liabilities (note 16) (22) (22)
 ---------------------

Net cash used in financing activities (396) 5,278
 ---------------------

Effects of exchange on the balance of cash
 held in Foreign currency (36) -
 ---------------------

Net decrease in cash and cash equivalents (14,234) (2,225)

Cash and cash equivalents at beginning of the period 22,200 26,692
 ---------------------

Cash and cash equivalents at end of the period 7,966 24,467
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