Tethys narrows Q2 losses on strong oil production, sales jump 76%
Aug 16. Proactive Investors USA & Canada
By Olivia D’Orazio
Tethys Petroleum (TSE:TPL) announced late Monday its exploration wells in Kazakhstan achieved strong oil flow, amid other exploration updates at its properties in Central Asia. The company also reported that it narrowed its second quarter losses as revenues jumped 76% on higher oil production.
Its appraisal well (AKD06) at the Doris oil discovery, located on the Akkulka block in western Kazakhstan, has been drilled to a depth of 641 metres, of a planned 2,400 metres in total, which the company expects to complete by October.
During the second quarter, well AKD01, also on the Doris oil discovery, flowed at over 5,400 barrels of oil per day (bbl/d), while the AKD05 well flowed at over 1,500 bbl/d, of what the company calls “good quality oil”.
The Kalypso wildcat exploration well (KBD01), also in Kazakhstan, has been drilled to 4,128 metres, close to the 4,300-metre completion depth.
Tethys said it has also completed 3,765 metres of drilling at its East Olimtoi exploration well (EOL09) on the Bokhtar property in southern Tajikistan. Electric logs are currently being run at the oil play to further determine areas of interest.
The company also said it has begun a gravity, gradiometry and magnetic aerial survey, covering the entire 35,000 square kilometre Bokhtar area. The results from the survey are expected in the fourth quarter of the year.
Meanwhile, in Uzbekistan, Tethys’ recent jet pump trial on the North Urtabulak oilfield increased oil rates on two test wells by 20%.
Further work is underway to determine the economics of extending the jet pump usage, which, together with the water injection reconfiguration carried out earlier this year, should have a positive impact on oil production in the second half of 2011.
Still, in the first half of the year, oil production already rose 60% to 5,566 barrels of oil equivalent per day (boe/d), with revenues nearly doubling.
In the three month period ending June 30, sales hiked 76% to $10.6 million, from $6.1 million a year ago.
Net loss for the quarter narrowed to $2.7 million, or $0.01 loss per share, compared to a $3.3 million loss, or $0.02 loss per share, in the second quarter of 2010.
The U.K.-based company also said it is continuing negotiations with Uzbek authorities on production enhancement contracts for two further oilfields in the Bukhara area.
The company’s stock on the Toronto Stock Exchange closed at $0.65 per share on Monday, up 10.17%.
Tethys Petroleum Limited’s strategy is to create shareholder value by building an oil and gas exploration and production company focused on Central Asia in areas with substantial oil and gas potential, building on the strengths of its management team and with a mix of short-term cash flow and upside potential. Currently Tethys has projects in Kazakhstan, Tajikistan and most recently Uzbekistan. Tethys is listed on the Toronto Stock Exchange in Canada and on the Kazakhstan Stock Exchange (KASE: GG_TPL_)