GRAND CAYMAN, CAYMAN ISLANDS--(Marketwired - May 13, 2016) - Tethys Petroleum Limited (TSX:TPL)(LSE:TPL) today announced its Results for the quarter ended March 31, 2016.
Q1 Financial Highlights (all figures reported in USD unless stated otherwise. 2015 amounts are for the quarter ended March 31, 2015)
Q1 Operational Highlights
Oil
Gas
Q1 Corporate Highlights
Post Q1 Highlights
On April 29, 2016 Tethys announced that it has entered into a binding investment agreement with Olisol Investments Limited ("Olisol") setting out the terms and conditions upon which Olisol Petroleum Limited, a wholly-owned subsidiary of Olisol ("OPL"), has agreed to purchase 181,240,793 new ordinary shares in Tethys at a price of C$0.054 per Share, for total proceeds of C$9.8 million, by way of a private placement and to commit to backstop a further equity fundraising of 50 million Shares at C$0.054 per Share (collectively, the "Olisol transaction"), subject to the terms and conditions of the investment agreement, including shareholder, court and regulatory approvals. This will generate proceeds of a total of C$12.5 million upon closing the transactions. An annual and special shareholders' meeting (the "AGM") has been called for May 31, 2016 for shareholders to approve a number of resolutions related to the Olisol transaction and the annual election of directors and appointment of auditors.
The Notice of Meeting and Management Information Circular for the AGM (the "meeting materials") together with forms of proxy, voting instructions and directions (as applicable) have been mailed to shareholders and are available on sedar.com. Shareholders are encouraged to carefully review the meeting materials and vote in favour of the resolutions set out in the meeting materials, including those related to the Olisol transaction. The Olisol transaction was unanimously supported by the Tethys Board of Directors.
Voting instructions for registered and non-registered shareholders are set out in the meeting materials.
Shareholder questions or requests for assistance with voting at the AGM should be directed to [email protected].
The full Q1 Results together with Management's Discussion and Analysis 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 the Tethys website at www.tethyspetroleum.com. The summary financial statements are attached to this press release.
The Company's Q1 2016 financial statements are prepared under International Financial Reporting Standards (IFRS).
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.
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 transaction. Such forward-looking statements reflect our current views with respect to future events and assume the completion of the Olisol transaction. These forward-looking statements are subject to certain risks and uncertainties, including the risk that the Olisol transaction will not receive required shareholder, court and regulatory approvals, that closing conditions will not be satisfied or that one or more aspects of the Olisol transaction will be otherwise delayed and accordingly that the Olisol transaction will not be completed. 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.
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) | ||
As at | ||
March 31, 2016 | December 31, 2015 | |
Non-current assets | ||
Intangible assets | 65,499 | 64,202 |
Property, plant and equipment | 110,672 | 113,397 |
Restricted cash | 2,232 | 2,233 |
Investment in joint arrangements | 4 | 4 |
Trade and other receivables | 2,195 | 2,457 |
Deferred tax | 223 | 226 |
180,825 | 182,519 | |
Current assets | ||
Cash and cash equivalents | 1,133 | 3,272 |
Trade and other receivables | 6,208 | 3,710 |
Inventories | 872 | 879 |
Restricted cash | 65 | 215 |
8,278 | 8,076 | |
Total assets | 189,103 | 190,595 |
Non-current liabilities | ||
Trade and other payables | 115 | 133 |
Financial liabilities - borrowings | 19,814 | 22,873 |
Deferred tax | 10,837 | 10,792 |
Provisions | 862 | 846 |
31,628 | 34,644 | |
Current liabilities | ||
Financial liabilities - borrowings | 10,718 | 9,159 |
Derivative financial instruments | 71 | 275 |
Current taxation | 429 | 398 |
Trade and other payables | 16,227 | 14,189 |
Provisions | 311 | 360 |
27,756 | 24,381 | |
Total liabilities | 59,384 | 59,025 |
Equity | ||
Share capital | 37,440 | 33,696 |
Share premium | 321,803 | 321,803 |
Other reserves | 43,248 | 43,166 |
Accumulated deficit | (278,866) | (273,189) |
Non-controlling interest | 6,094 | 6,094 |
Total equity | 129,719 | 131,570 |
Total equity and liabilities | 189,103 | 190,595 |
Tethys Petroleum Limited | ||||
Consolidated Statements of Comprehensive Income (Loss) | ||||
(in thousands of US dollars except per share information) | ||||
Three months ended March 31 | ||||
2016 | 2015 | |||
Sales and other revenues | 3,455 | 5,954 | ||
Sales expenses | (734 | ) | (1,102 | ) |
Production expenses | (1,196 | ) | (2,608 | ) |
Depreciation, depletion and amortisation | (2,856 | ) | (674 | ) |
Administrative expenses | (1,787 | ) | (2,821 | ) |
Restructuring costs | (755 | ) | (319 | ) |
Transaction costs of assets held for sale | - | (120 | ) | |
Share based payments | (82 | ) | (147 | ) |
Profit on sale of fixed assets | 10 | 14 | ||
Foreign exchange gain/(loss) | 73 | (6 | ) | |
Fair value gain on derivative financial instrument | 204 | 1,078 | ||
Loss from jointly controlled entity | - | (250 | ) | |
Finance costs | (1,930 | ) | (579 | ) |
(9,063 | ) | (7,534 | ) | |
Loss before tax from continuing operations | (5,598 | ) | (1,580 | ) |
Taxation | (79 | ) | (454 | ) |
Loss from continuing operations | (5,677 | ) | (2,034 | ) |
Loss from discontinued operations net of tax | - | (41 | ) | |
Loss and total comprehensive income | (5,677 | ) | (2,075 | ) |
Loss and total comprehensive income attributable to: | ||||
Shareholders | (5,677 | ) | (2,073 | ) |
Non-controlling interest | - | (2 | ) | |
Loss and total comprehensive income | (5,677 | ) | (2,075 | ) |
Loss per share attributable to shareholders: | ||||
Basic and diluted - from continuing operations (USD) | (0.02 | ) | (0.01 | ) |
Basic and diluted - from discontinued operations (USD) | - | - |
Tethys Petroleum Limited | ||||
Consolidated Statements of Cash Flows | ||||
(in thousands of US dollars) | ||||
Three months ended March 31 | ||||
2016 | 2015 | |||
Cash flow from operating activities | ||||
Loss before tax from continuing operations | (5,598 | ) | (1,580 | ) |
Loss before tax from discontinued operations | - | (41 | ) | |
(5,598 | ) | (1,621 | ) | |
Adjustments for: | ||||
Share based payments | 82 | 146 | ||
Net finance cost | 1,930 | 579 | ||
Depreciation, depletion and amortisation | 2,856 | 674 | ||
Profit on sale of fixed assets | - | (15 | ) | |
Fair value gain on derivative financial instruments | (203 | ) | (1,078 | ) |
Net unrealised foreign exchange gain | (64 | ) | (121 | ) |
Loss from jointly controlled entity | - | 250 | ||
Movement in provisions | (791 | ) | (793 | ) |
Net change in working capital | (137 | ) | 641 | |
Cash used in operating activities | (1,925 | ) | (1,338 | ) |
Corporation tax paid | - | (130 | ) | |
Net cash used in operating activities | (1,925 | ) | (1,468 | ) |
Cash flow from investing activities: | ||||
Interest received | - | 45 | ||
Expenditure on exploration and evaluation assets | (278 | ) | (1,205 | ) |
Expenditure on property, plant and equipment | (116 | ) | (742 | ) |
Proceeds from sale of fixed assets | - | 16 | ||
Movement in restricted cash | 151 | (4 | ) | |
Movement in advances to construction contractors | 4 | 91 | ||
Movement in value added tax receivable | 222 | 352 | ||
Net change in working capital | (22 | ) | (2,128 | ) |
Net cash used in investing activities | (39 | ) | (3,575 | ) |
Cash flow from financing activities: | ||||
Proceeds from issuance of borrowings, net of issue costs | 2,000 | 9,135 | ||
Repayment of borrowings | (340 | ) | (467 | ) |
Interest paid on borrowings | (1,169 | ) | (354 | ) |
Movement in other non-current liabilities | (47 | ) | (28 | ) |
Net cash generated from financing activities | 444 | 8,286 | ||
Effects of exchange rate changes on cash and cash equivalents | (619 | ) | (124 | ) |
Net (decrease)/increase in cash and cash equivalents | (2,139 | ) | 3,119 | |
Cash and cash equivalents at beginning of the period | 3,272 | 3,868 | ||
Cash and cash equivalents at end of the period | 1,133 | 6,987 | ||
Cash and cash equivalents at end of the period comprises: | ||||
Cash in assets of a disposal group held for sale | 0 | 1,707 | ||
Cash and cash equivalents | 1,133 | 5,280 | ||
1,133 | 6,987 |
Tethys Petroleum
[email protected]
www.tethyspetroleum.com