Central Asia-focused junior producer Tethys Petroleum reported Monday that it saw lower revenues during the first quarter of 2015 in spite of boosting its production by nine percent.
Revenue from oil and gas sales was at $5.95 million during the quarter, compared to $6.78 million in 1Q 2014. But Tethys reduced its loss from continuing operations for the period to $2.03 million (1Q 2014: $4.41 million).
Total production by Tethys amounted to 4,368 barrels of oil equivalent per day (1Q 2014: 4,025 boepd). Gas production was up 57 percent at 3,173 boepd. Current average production for the second quarter is 4,807 boepd, the firm said.
In a statement, Tethys Executive Chairman John Bell explained: "The fall in oil prices has obviously affected the bottom line like all our peers but the focus on increasing gas production has proven to be beneficial and has mitigated this to some extent."
The firm also took action to reduce administrative costs and production costs, which were down 45 percent and 31 percent during the quarter compared to 1Q 2014.
Meanwhile, Tethys recently secured a $7.5-million convertible loan facility on May 15, with AGR Energy Limited No.1, which Bell said would help give the company the opportunity to grow going forward.
"We continue the strategic review process, where we have entered into an exclusivity period for four weeks, to discuss a potential larger financing with AGR. I will update shareholders when we have further news in this important area," Bell added.
The quarter saw Tethys gain respectively four-year and 15-year extensions to its Akkulka exploration and Kyzyloi gas production contracts, and the firm saw progress with its seismic survey in Tajikistan.
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