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Tethys Petroleum Limited: RETRANSMISSION-Tethys Petroleum Limited: Second Quarter 2009 Financial Results

^{Published on 2009-08-17 06:30:22, Last Modified on 2009-08-17 06:30:30 - Market Wire}
 

ST. PETER PORT, GUERNSEY--(Marketwire - Aug. 17, 2009) - Tethys Petroleum Limited ("Tethys" or the "Company")(TSX:TPL) today announced its half year and second quarter 2009 financial results which are underscored by a 79% increase in revenues over the second quarter of last year and a five fold increase over the first quarter of this year.

The Company reports financial results in accordance with International Financial Reporting Standards ("IFRS").

HIGHLIGHTS

- Production revenues for the quarter from Kazakhstan and Uzbekistan totalled some US$2.8 million compared to US$1.6 million for the same period in 2008 and $0.5 million for Q1 2009. The newly acquired North Urtabulak oil project in Uzbekistan contributed approximately US$1.6 million of the Q2 2009 revenues. Oil production from the North Urtabulak field attributable to Tethys in Q2 2009 averaged 914 barrels of oil per day ("bopd") compared to current net production which is some 1,000 bopd.

- Gas production from the Kyzyloi Field in Kazakhstan increased by 236% in Q2 2009 compared to Q1 2009 with the work on the upgrading of the Kyzyloi production system being completed (to take Phase 2 Akkulka Field gas). However, because of restrictions further up in the Bukhara-Urals gas trunkline Kyzyloi gas output was reduced to approximately half of its planned production level with effect from the middle of May averaging some 400 thousand cubic metres a day (Mcm/d) (14.1 million cubic feet a day (MMcf/d)) for the quarter. As a result of this reduction in the Kyzyloi output the level of revenue generated in Kazakhstan in Q2 2009 was less than anticipated at approximately US$1.2 million. This restriction has now been removed and gas production is currently some 520 Mcm/d (18.4 MMcf/d) to be progressively increased to 566 Mcm/d (20MMcf/d).

- A net loss of approximately US$5.6 million was recorded in Q2, 2009 compared to a net loss of approximately US$5.0 million for the same period in 2008.

- Capital expenditure of approximately US$4.8 million was incurred in Q2, 2009 compared to US$9.6 million for the same period in 2008.

The unaudited Interim Consolidated Financial Statements for June 30, 2009 and Management Discussion and Analysis are available in full on [ www.sedar.com ].

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.

This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to our operations. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions. See our Annual Information Form for the year ended December 31, 2008 and other filings 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 June 30, 2009 and December 31, 2008
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(in thousands of US dollars)



 June 30, December 31, January 1,
 2009 2008 2008
 $ $ (see note 23) $

Assets
Non-current assets
Intangible assets 23,837 11,688 7,335
Property, plant and equipment 75,043 69,839 38,327
Investments 606 587 318
Other receivables 4,284 6,357 5,814
 -----------------------------------------

 103,770 88,471 51,794
 -----------------------------------------

Current assets
Inventories 458 213 -
Trade and other receivables 2,800 2,664 1,360
Cash and cash equivalents 20,549 22,200 26,692
 -----------------------------------------

 23,807 25,077 28,052
 -----------------------------------------

Total assets 127,577 113,548 79,846
 -----------------------------------------
 -----------------------------------------
Equity and Liabilities
Equity attributable to
 shareholders
Share capital 13,455 6,639 4,511
Share premium 153,863 138,598 94,972
Other reserves 26,767 25,147 20,728
Accumulated deficit (78,263) (66,654) (44,470)
 -----------------------------------------

 115,822 103,730 75,741

Liabilities
Non-current liabilities
Financial liabilities - borrowings 4,638 5,096 -
Other non-current payables 461 523 776
Provisions for other liabilities
 and charges 200 465 1,050
 -----------------------------------------

 5,299 6,084 1,826
 -----------------------------------------
Current liabilities
Financial liabilities - borrowings 1,149 853 -
Financial liabilities - warrants 629 146 -
Trade and other payables 4,678 2,735 2,279
 -----------------------------------------

 6,456 3,734 2,279
 -----------------------------------------

Total liabilities 11,755 9,818 4,105
 -----------------------------------------

Total shareholders' equity and
 liabilities 127,577 113,548 79,846
Commitments and contingencies -----------------------------------------
 -----------------------------------------




Tethys Petroleum Limited
Interim Consolidated Statement of Comprehensive Loss
(Unaudited)
For the three and six months ended June 30
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(in thousands of US dollars, except for per share amounts)

 Three months ended Six months ended
 June 30, June 30, June 30, June 30,
 2009 2008 2009 2008
 $ $ $ $
Sales and other operating
 revenues 2,797 1,566 3,326 2,997

Production expenditures (956) (196) (1,241) (263)
Depreciation, depletion and
 amortization (1,398) (1,249) (1,915) (2,354)
Share based payments -
Foreign exchange loss -
Exploration and evaluation
 expenditure written off (109) (274) (126) (274)
Fair value gains (loss) on
 derivative financial instrument (101) 112 (61) 141
Administrative expenses (5,099) (5,228) (10,572) (9,253)
 -----------------------------------------

Operating loss (4,866) (5,269) (10,589) (9,006)

Finance income 19 257 49 424
Finance costs (746) (11) (1,069) (1,052)
 -----------------------------------------

Loss before tax (5,593) (5,023) (11,609) (9,634)

Taxation - - - -
 -----------------------------------------

Total comprehensive loss for
 the period attributable to
 shareholders (5,593) (5,023) (11,609) (9,634)
 -----------------------------------------
 -----------------------------------------

Loss per share

Basic and diluted (0.06) (0.10) (0.15) (0.21)
 -----------------------------------------
 -----------------------------------------

No dividends were paid or are
 declared for the period (2008 -
 $Nil)
All operations were continuing
 throughout the period



 Three months ended Six months ended
 June 30, June 30, June 30, June 30,
 2009 2008 2009 2008
 $ $ $ $
Cash flow from operating
 activities
Loss before income tax for
 the period (5,593) (5,023) (11,609) (9,634)
Adjustments for
 Share-based payments to
 employees 916 2,084 1,620 2,925
 Net finance cost/(income) 727 (246) 1,020 628
 Unsuccessful exploration and
 evaluation expenditures 109 274 126 274
 Depreciation, depletion and
 amortization 1,398 1,249 1,915 2,354
 Fair value gain/(loss) on
 derivative financial
 instrument 101 (112) 61 (141)
 Net unrealised foreign
 exchange loss (83) 18 1,167 34
 -----------------------------------------

Operating cash flows before
 movements in working capital (2,425) (1,756) (5,700) (3,560)

Increase in trade and other
 receivables 732 558 162 (172)
Decrease in trade and other
 payables 725 58 254 (207)
Increase in inventories (129) - (245) -
 -----------------------------------------

Cash used in operations (1,097) (1,140) (5,529) (3,939)

Interest received 19 124 49 291
 -----------------------------------------

Net cash used in operating
 activities (1,078) (1,016) (5,480) (3,648)
 -----------------------------------------

Cash flow from investing
 activities
Expenditure on exploration and
 evaluation assets (3,056) (1,563) (9,006) (1,697)
Expenditures on property, plant
 and equipment (1,722) (8,002) (6,009) (11,408)
Acquisition of subsidiary net
 of cash received 532 532
Investment in restricted cash (11) (21) (19) (126)
Advances to construction
 contractors 234 (782) 1,154 (2,066)
Value added tax receivable 31 (62) (44) (4)
 -----------------------------------------

Net cash used in investing
 activities (3,992) (10,430) (13,392) (15,301)
 -----------------------------------------

Cash flow from financing
 activities
Proceeds from short-term
 borrowings 2,500 - 2,500 5,300
Repayment of short-term
 borrowings (2,500) - (2,500) -
Repayment of long-term
 borrowings (152) (186) (364) (186)
Interest paid on long-term
 borrowings and other
 non-current payables (230) - (392) -
Other non-current liabilities (20) (182) (42) (204)
Proceeds from issuance of
 ordinary shares 20,000 50,000 20,000 50,000
Costs of issuance of ordinary
 shares (1,981) (3,750) (1,981) (3,750)
 -----------------------------------------

Net cash used in financing
 activities 17,617 45,882 17,221 51,160
 -----------------------------------------

Effects of exchange on the
 balance of cash held in
 foreign currency 36 - - -
 -----------------------------------------

Net decrease in cash and cash
 equivalents 12,583 34,436 (1,651) (32,211)

Cash and cash equivalents at
 beginning of the period 7,966 24,467 22,200 26,692
 -----------------------------------------

Cash and cash equivalents at
 end of the period 20,549 58,903 20,549 58,903
 -----------------------------------------
 -----------------------------------------