Tethys Petroleum Loss Narrows In Last Annual Results Before Delisting
LONDON (Alliance News) – Tethys Petroleum Ltd reported another hefty annual loss on Monday when it published its 2016 results, as revenue halved and impairments were booked, but said this was still a major improvement from the even larger loss booked in 2015.
Tethys shares were trading up 26% on Monday at 1.73 pence.
Revenue in 2016 plunged to USD11.7 million from USD22.1 million the year before, with production costs falling in line to USD5.3 million from USD10.2 million.
Tethys booked broadly flat write-offs of exploration and evaluation expenditure in the year of USD25.6 million, while depreciation and amortisation charges fell to USD10.0 million from USD28.7 million. The company did book a USD1.2 million impairment when there were none present in 2015.
Administrative expenses fell to USD5.5 million from USD9.5 million, restructuring costs amounted to USD1.9 million versus USD3.2 million the year before and a foreign exchange gain of USD117,000 was booked compared to the USD1.7 million loss booked in 2015.
Tethys also benefited from a USD2.8 million loss in 2015 from joint ventures that fortunately did not repeat itself, but reported higher finance costs of USD5.3 million versus USD3.3 million in 2015.
Overall, Tethys booked costs and charges amounting to USD57.3 million compared to USD90.3 million the year before, resulting in a pretax loss from continuing operations of USD45.5 million in 2016, narrowed from the USD68.2 million loss made in 2015.
Tethys is delisting its shares from the London Stock Exchange on May 2 to reduce the costs of maintaining dual listings, as it has favoured its listing on the Toronto Stock Exchange.
Tethys has main operations in Kazakhstan, and other operations in Tajikistan and Georgia.
The company recently announced a ten well shallow gas well drilling program which is expected to cost approximately USD6 million. The company will have until the end of 2018 fiscal year to pay these costs and expects to be able to pay from increased production. Following mobilization, the company hopes to begin drilling on the first day of May or soon after, coinciding with the timing of the delisting from London.
The company also announced the signing of a lease contract to build and install a mini-compressor in Bozoi. Installation in Kazakhstan is expected during July.
“This is new technology for Central Asia and is intended to enhance gas production prior to the new wells being tied in. After new production is tied in, then the mini-compressor will be used on older wells to extend the life of wells,” said Tethys.
Tethys is focused on oil and gas exploration and production activities in Central Asia and the Caspian Region. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.