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Tethys Petroleum Limited: Third Quarter 2009 Financial Results

^{Published on 2009-11-16 06:28:27 - Market Wire}
 

ST. PETER PORT, GUERNSEY--(Marketwire - Nov. 16, 2009) - Tethys Petroleum Limited ("Tethys" or the "Company") (TSX:TPL) today announced its third quarter 2009 financial results. The results are underlined by a 60% increase in revenues over the third quarter of last year.

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

HIGHLIGHTS

- Production revenues for the quarter from Kazakhstan and Uzbekistan totaled some US$2.426 million compared to US$1.484 million for the same period in 2008.

- Capital expenditure in the three months to September 30, 2009 was US$8.337 million compared to US$14.152 million in the same period of 2008. Capital expenditure for the period focused operationally on:

-- Drilling of the "deep" exploration well AKD01 at Akkulka, Kazakhstan

-- Drilling of the new East Komsomolsk well KOM200 in Tajikistan

-- Drilling of exploration well EOL 09 at East Olimtai in Tajikistan

-- Tajik seismic data processing

-- Workovers on wells in Uzbekistan

- A net loss of $3.944 million was recorded in the three months to September 30, 2009, compared to $4.964 million in the three months to September 30, 2008. As at September 30, 2009 in Uzbekistan products valued at $815,000 were stored in inventory. This stock is being held in inventory for a batch sale, which should realise a better price and had this stock been sold the net loss would have been significantly reduced.

- Operating costs for Q3 2009 were US$0.748 million compared to US$0.275 million for the same period in 2008 primarily as a result of commencing oil production in Uzbekistan.

- G & A costs in the three months to September 30, 2009 were US$3.268 million compared to US$3.429 million the same period of 2008.

Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Tajikistan, Kazakhstan 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 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 September 30, 2009 and December 31, 2008
---------------------------------------------------------------------------

(in thousands of US dollars)

 September December 31, January 1,
 Note 30, 2009 2008 2008
 $ $ (see note 24) $
Assets
Non-current assets
Intangible assets 10 27,836 11,688 7,335
Property, plant and equipment 11 78,252 69,839 38,327
Investments 12 614 587 318
Other receivables 13 4,504 6,357 5,814
 ---------------------------------------

 111,206 88,471 51,794
 ---------------------------------------

Current assets
Inventories 815 213 -
Trade and other receivables 13 3,895 2,664 1,360
Cash and cash equivalents 14 8,711 22,200 26,692
 ---------------------------------------

 13,421 25,077 28,052
 ---------------------------------------

Total assets 124,627 113,548 79,846
 ---------------------------------------
 ---------------------------------------

Equity and Liabilities
Equity attributable to
 shareholders
Share capital 18 13,455 6,639 4,511
Share premium 18 153,795 138,598 94,972
Other reserves 27,535 25,147 20,728
Accumulated deficit (82,208) (66,654) (44,470)
 ---------------------------------------

 112,577 103,730 75,741
 ---------------------------------------

Liabilities
Non-current liabilities
Financial liabilities -
 borrowings 15 4,356 5,096 -
Other non-current payables 16 436 523 776
Provisions for other
 liabilities and charges 17 206 465 1,050
 ---------------------------------------

 4,998 6,084 1,826
 ---------------------------------------

Current liabilities
Financial liabilities -
 borrowings 15 1,301 853 -
Financial liabilities -
 warrants 15 788 146 -
Trade and other payables 16 4,963 2,735 2,279
 ---------------------------------------

 7,052 3,734 2,279
 ---------------------------------------

Total liabilities 12,050 9,818 4,105

Total shareholders' equity and
 liabilities 124,627 113,548 79,846
 ---------------------------------------
 ---------------------------------------
Commitments and contingencies 23



Tethys Petroleum Limited
Interim Consolidated Statement of Comprehensive Loss
(Unaudited)
For the nine months ended September 30, 2009
---------------------------------------------------------------------------
(in thousands of US dollars)


 Three months ended Nine months ended
 September 30, September 30,
 Note 2009 2008 2009 2008
 $ $ $ $
Sales and other operating
 revenues 5 2,426 1,484 5,752 4,482

Production expenditures (748) (275) (1,989) (537)
Depreciation, depletion and
 amortization (1,120) (1,254) (3,035) (3,608)
Exploration and evaluation
 expenditure written off (14) (67) (140) (341)
Fair value gains (loss) on
 derivative financial
 instrument (160) 517 (221) 658
Administrative expenses 6 (4,191) (4,159) (12,342) (13,277)
 --------------------------------------

Operating loss (3,807) (3,754) (11,975) (12,623)

Foreign exchange gains (loss)
 net 147 (1,254) (2,275) (1,391)
Finance income - 202 49 626
Finance costs (284) (158) (1,353) (1,210)
 --------------------------------------

Loss before tax (3,944) (4,964) (15,554) (14,598)

Taxation 8 - - - -
 --------------------------------------

Total comprehensive loss for
 the period attributable
 to shareholders (3,944) (4,964) (15,554) (14,598)
 --------------------------------------
 --------------------------------------
Loss per share
Basic and diluted 9 (0.03) (0.07) (0.16) (0.27)
 --------------------------------------
 --------------------------------------
No dividends were paid or are
 declared for the period
 (2008 - $Nil).
All operations were continuing
 throughout both periods.


 Attributable to shareholders

 Accu- Option
 Share Share mulated re- Warrant Total
 Note capital premium deficit serves reserves equity
 $ $ $ $ $ $

At January 1, 2008 18 4,511 94,972 (44,470) 4,173 16,555 75,741
Loss for the period - - (14,598) - - (14,598)
Issue of share capital 18 2,128 47,872 - - - 50,000
Cost of share issue - (3,928) - - - (3,928)
Share-based payments -
 value of employee
 service - - - 3,655 - 3,655


Tethys Petroleum Limited
Interim Consolidated Statement of Cash Flows 
(Unaudited)
For the three and nine months ended September 30, 2009
---------------------------------------------------------------------------

(in thousands of US dollars)
 Three months Nine months
 ended ended
 September 30, September 30,
 Note 2009 2008 2009 2008
 $ $ $ $
Cash flow from operating
 activities
Loss before income tax for the
 period (3,944) (4,964) (15,554) (14,598)
Adjustments for
 Share based payments 7 768 730 2,388 3,655
 Net finance cost (income) 284 (44) 1,305 584
 Unsuccessful exploration
 and evaluation 10
 expenditures 14 67 140 341
 Depreciation, depletion and
 amortization 11 1,120 1,254 3,035 3,608
 Fair value gain (losses) on
 derivative financial instrument 160 (517) 221 (658)
 Net unrealised foreign exchange loss (7) (33) 1,200 -
 Increase (decrease) in working
 capital 22 (1,199) (1,551) (1,028) (1,929)
 ----------------------------------
Cash used in operations (2,732) (5,058) (8,293) (8,997)
Interest received - 335 49 626
 ----------------------------------
Net cash used in operating activities (2,768) (4,723) (8,244) (8,371)
 ----------------------------------
Cash flow from investing activities
Expenditure on exploration and
 evaluation assets (4,530) (1,734) (13,537) (3,432)
Expenditures on property, plant
 and equipment (3,807) (12,418) (9,816) (23,825)
Acquisition of subsidiary, net of
 cash received 19 - - 532 -
Investment in restricted cash (7) (26) (27) (151)
Movement in advances to construction
 contractors 126 (1,625) 1,280 (3,692)
Value added tax receivable (350) (994) (395) (998)
 ----------------------------------
Net cash used in investing activities (8,568) (16,797) (21,963) (32,098)
 ----------------------------------
Cash flow from financing activities
Proceeds from short-term borrowings 15 - - 2,500 5,300
Repayment of short-term borrowings - - (2,500) -
Repayment of long-term borrowings 15 (230) (192) (594) (378)
Interest paid on long-term
 borrowings and other non current
 payables (182) - (574) -
Other non-current liabilities 16 (22) (24) (65) (228)
Proceeds issuance of ordinary share 18 - - 20,000 50,000
Costs of issuance of ordinary shares 18 (68) (178) (2,049) (3,928)
 ----------------------------------
Net cash from/(used) in financing
 activities (502) (394) 16,718 50,766
 ----------------------------------
Effects of exchange on the balance
 of cash held in a foreign currency (36) - - -
 ----------------------------------
Net increase/(decrease) in cash and
 cash equivalents (11,838) (21,914) (13,489) 10,297
Cash and cash equivalents at
 beginning of the period 20,549 58,903 22,200 26,692
 ----------------------------------
Cash and cash equivalents at end of
 the period 8,711 36,989 8,711 36,989
 ----------------------------------



Tethys Petroleum Limited
Notes to Interim Consolidated Financial Statements
For the period ended September 30, 2009 (tabular amounts in thousands of
US dollars)