Turnaround at Tethys 'Well Underway'
Central Asia-focused junior oil company Tethys Petroleum said Monday that "the turnaround is now well underway" at its business, in spite of a wider loss during the second quarter of 2015 compared with a year earlier.
Tethys' revenue held up reasonably well during 2Q 2015 – $6.84 million, compared to $7.12 million in 2Q 2014 – thanks to production increasing by 21 percent to 5,204 barrels of oil equivalent per day (2Q 2014: 4,312 boepd). But the firm's loss before tax increased to $28.7 million from $3.1 million in 2Q 2014. This increased loss was due to a one-off $19.4 million charge for the depletion of properties reclassified from "assets held for sale" as well as restructuring expenses of $2.6 million.
Meanwhile, the firm said that a strategic review of the business that encompasses options including asset sales, farm-outs, financing, investments or the sale of the company as a whole is continuing. Tethys has been in discussions with a number of interested parties, including AGR Energy and Nostrum Oil & Gas. On August 10, Tethys said that a $47.4-million financing deal with AGR had fallen through, while the firm has negotiated a $5 million loan financing with Nostrum while the latter company conducts its due diligence.
Tethys Executive Chairman John Bell commented in a company statement:
"The turnaround is now well underway, some of which is reflected in these financial results. I am encouraged by the performance of the gas division and the cost reductions achieved at group level. The strategic review is ongoing, and the team is working hard to both conclude the strategic review process and continue to improve the operations."
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension