GRAND CAYMAN, CAYMAN ISLANDS--(Marketwired - Mar 29, 2016) - Tethys Petroleum Limited (TSX:TPL)(LSE:TPL) today announced its Annual Results for the year ended December 31, 2015.
Corporate Highlights - 2015
Corporate Highlights - Q1 2016
Financial Highlights - 2015
Reserve Highlights
The reserve report was prepared by Gustavson Associates in full accordance with the requirements of National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities of the Canadian Securities Administrators. The Company's 2015 Annual Information Form dated March 29, 2016 includes more detailed disclosure and reports relating to petroleum and natural gas activities for 2015. Both oil and gas reserves are based on availability of sufficient funding to allow development of the known accumulations. The estimated value (NPV10) of the reserves does not represent fair market value.
Chairman's Message
John Bell, co-Chairman, said: "2015 saw unprecedented challenges in the oil and gas industry worldwide. Kazakhstan saw its own unique challenges with declining prices and a massive depreciation in the Kazakh Tenge starting the year at 180 Tenge to the USD and ending up around 350 Tenge to the USD. This put pressure on revenues and a severe strain on the Kazakh banking industry. Despite this the Company adjusted to the new paradigm and in 2015 we have halved the Company's G&A and Business Development expenses, whilst increasing gas production by 98% at a higher gas price. These costs are forecast to reduce further to $6 million on an annualised basis. Furthermore, we secured a new in-country strategic partner in Olisol Petroleum Limited and progressed on reaching a binding agreement which will lead to a recapitalisation of the business, ensure the Company's continued operations and will see Olisol becoming a major shareholder. I believe we are now better placed to realise value from the assets and have the right in-country partner to achieve success in Kazakhstan."
The full Annual Results together with Management's Discussion and Analysis and Annual Information Form have been filed with the Canadian securities regulatory authorities. Copies of the filed documents may be obtained via SEDAR at www.sedar.com or on Tethys' website at www.tethyspetroleum.com. The summary financial statements are attached to this press release.
The Company's 2015 financial statements are prepared under International Financial Reporting Standards (IFRS).
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.
Cautionary Statements
This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to our operations and completion of the Olisol deal. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including the risk that the private placement with Olisol will be delayed or not finalised. See our Annual Information Form for the year ended December 31, 2015 for a description of risks and uncertainties relevant to our business, including our exploration activities.
A barrel of oil equivalent ("boe") conversion ratio of 6,000 cubic feet (169.9 cubic metres) of natural gas = 1 barrel of oil has been used and is based on the standard energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
About Tethys Petroleum
Tethys Petroleum's aim is to become the leading independent E&P Company in Central Asia, by exercising capital discipline, by generating cash flow from existing discoveries and by maturing large exploration prospects within our highly attractive frontier acreage.
Tethys Petroleum Limited | ||
Consolidated Statement of Financial Position | ||
(in thousands of US dollars) | ||
2015 | 2014 | |
Non-current assets | ||
Intangible assets | 64,202 | 47,630 |
Property, plant and equipment | 113,397 | 13,804 |
Restricted cash | 2,233 | 623 |
Investment in joint arrangements | 4 | 4 |
Trade and other receivables | 2,457 | - |
Deferred tax | 226 | 258 |
182,519 | 62,319 | |
Current assets | ||
Cash and cash equivalents | 3,272 | 3,112 |
Trade and other receivables | 3,710 | 634 |
Inventories | 879 | - |
Restricted cash | 215 | 116 |
Assets of a disposal group classified as held for sale | - | 172,514 |
8,076 | 176,376 | |
Total assets | 190,595 | 238,695 |
Non-current liabilities | ||
Trade and other payables | 133 | - |
Financial liabilities - borrowings | 22,873 | 5,489 |
Deferred tax | 10,792 | - |
Provisions | 846 | - |
34,644 | 5,489 | |
Current liabilities | ||
Financial liabilities - borrowings | 9,159 | 5,139 |
Derivative financial instruments | 275 | - |
Current taxation | 398 | 364 |
Trade and other payables | 14,189 | 4,102 |
Provisions | 360 | 1,759 |
Liabilities of a disposal group classified as held for sale | - | 16,092 |
24,381 | 27,456 | |
Total liabilities | 59,025 | 32,945 |
Equity | ||
Share capital | 33,696 | 33,645 |
Share premium | 321,803 | 321,724 |
Other reserves | 43,166 | 42,845 |
Accumulated deficit | (273,189) | (198,560) |
Non-controlling interest | 6,094 | 6,096 |
Total equity | 131,570 | 205,750 |
Total equity and liabilities | 190,595 | 238,695 |
Tethys Petroleum Limited | ||||
Consolidated Statements of Comprehensive Income (Loss) | ||||
(in thousands of US dollars except per share information) | ||||
2015 | 2014 | |||
Sales and other revenues | 22,135 | 27,389 | ||
Sales expenses | (4,210 | ) | (2,287 | ) |
Production expenses | (10,232 | ) | (13,476 | ) |
Depreciation, depletion and amortisation | (28,731 | ) | (1,270 | ) |
Exploration and evaluation expenditure written off | (25,918 | ) | - | |
Business development expenses | - | (1,881 | ) | |
Administrative expenses | (9,492 | ) | (17,647 | ) |
Restructuring costs | (3,247 | ) | (2,585 | ) |
Transaction costs of assets held for sale | (1,065 | ) | (243 | ) |
Share based payments | (450 | ) | (224 | ) |
Profit on sale of fixed assets | 53 | - | ||
Foreign exchange loss | (1,715 | ) | (200 | ) |
Fair value gain on derivative financial instrument | 824 | 17 | ||
Loss from jointly controlled entity | (2,796 | ) | (1,356 | ) |
Finance costs | (3,329 | ) | (1,247 | ) |
(90,308 | ) | (42,399 | ) | |
Loss before tax from continuing operations | (68,173 | ) | (15,010 | ) |
Taxation | (6,430 | ) | (463 | ) |
Loss for the year from continuing operations | (74,603 | ) | (15,473 | ) |
Loss for the year from discontinued operations net of tax | (28 | ) | (912 | ) |
Loss and total comprehensive income for the year | (74,631 | ) | (16,385 | ) |
Loss and total comprehensive income attributable to: | ||||
Shareholders | (74,629 | ) | (16,027 | ) |
Non-controlling interest | (2 | ) | (358 | ) |
Loss and total comprehensive income for the year | (74,631 | ) | (16,385 | ) |
Loss per share attributable to shareholders: | ||||
Basic and diluted - from continuing operations (USD) | (0.22 | ) | (0.05 | ) |
Basic and diluted - from discontinued operations (USD) | - | - | ||
Tethys Petroleum Limited | ||||
Consolidated Statements of Cash Flows | ||||
(in thousands of US dollars) | ||||
2015 | 2014 | |||
Cash flow from operating activities | ||||
Loss before tax from continuing operations | (68,173 | ) | (15,010 | ) |
Loss before tax from discontinued operations | (28 | ) | (912 | ) |
(68,201 | ) | (15,922 | ) | |
Adjustments for: | ||||
Share based payments | 450 | 224 | ||
Net finance cost | 3,329 | 1,247 | ||
Depreciation, depletion and amortisation | 28,731 | 1,270 | ||
Unsuccessful exploration and evaluation expenditures | 25,918 | - | ||
Profit on sale of fixed assets | (53 | ) | - | |
Fair value gain on derivative financial instruments | (824 | ) | (17 | ) |
Net unrealised foreign exchange gain | (114 | ) | (192 | ) |
Loss from jointly controlled entity | 2,796 | 1,356 | ||
Movement in provisions | (4,646 | ) | 1,239 | |
Net change in working capital | 752 | (389 | ) | |
Cash used in operating activities | (11,862 | ) | (11,184 | ) |
Corporation tax paid | (136 | ) | (320 | ) |
Net cash used in operating activities | (11,998 | ) | (11,504 | ) |
Cash flow from investing activities | ||||
Interest received | 183 | 198 | ||
Expenditure on exploration and evaluation assets | (5,798 | ) | (8,683 | ) |
Expenditure on property, plant and equipment | (2,495 | ) | (17,386 | ) |
Proceeds from sale of fixed assets | 121 | - | ||
Movement in restricted cash | 214 | 137 | ||
Movement in advances to construction contractors | 416 | 782 | ||
Movement in value added tax receivable | 1,284 | (90 | ) | |
Net change in working capital | (1,275 | ) | 285 | |
Net cash generated used in investing activities | (7,350 | ) | (24,757 | ) |
Cash flow from financing activities | ||||
Proceeds from issuance of borrowings, net of issue costs | 28,107 | 11,604 | ||
Repayment of borrowings | (10,269 | ) | (8,803 | ) |
Interest paid on borrowings | (1,448 | ) | (1,721 | ) |
Proceeds from issuance of equity | - | 14,947 | ||
Share issue costs | - | (1,379 | ) | |
Movement in other non-current liabilities | (313 | ) | (153 | ) |
Net cash generated from financing activities | 16,077 | 14,495 | ||
Effects of exchange rate changes on cash and cash equivalents | 2,675 | (97 | ) | |
Net decrease in cash and cash equivalents | (596 | ) | (21,863 | ) |
Cash and cash equivalents at beginning of the year | 3,868 | 25,731 | ||
Cash and cash equivalents at end of the year | 3,272 | 3,868 | ||
Cash and cash equivalents at end of the year comprises: | ||||
Cash in assets of a disposal group held for sale | - | 756 | ||
Cash and cash equivalents | 3,272 | 3,112 | ||
3,272 | 3,868 |
Tethys Petroleum
[email protected]
www.tethyspetroleum.com
CAMARCO (Financial PR)
Billy Clegg / Georgia Mann
+44 (0) 203 757 4983