Tethys Petroleum Limited is pleased to announce its Second Quarter ("Q2") 2008 Financial Results.
- On June 27, 2008 the Company completed a public offering of ordinary shares raising gross proceeds of US$50 million (US$46.25 million after deduction of broker's commissions and professional fees).
- In Q2 2008 the Company realized revenues (net of royalties and not including VAT recovery) of US$1.56 million from gas sales from the Kyzyloi Field, with gas production for sales averaging approximately 20 million cubic feet per day (MMcf/d) from the initial six wells on the field.
- A net loss of US$ 5.28 million was recorded in the three months to June 30, 2008. More than US$3.6 million of this loss was the result of non-cash movements relating to costs of share options and warrants and the depreciation of proved properties. General and administration expenses were slightly lower than Q1 but were significantly higher than for the same period in 2007 primarily due to additional costs associated with the public offering and to increased staffing and business development costs related to further development of the Company's business.
- As of June 30, 2008 the Company had cash and cash equivalents of US$58.9 million excluding pre-payments of US$5.8 million, these pre-payments being principally related to pre-payments for drilling services for wells in Kazakhstan and stage payments for equipment required for Phase 2 of the Company's shallow gas development in Kazakhstan.
- In Q2 2008 capital expenditure of US$13.1 million was incurred, this being principally related to the purchase of the deep drilling rig "Telesto" and associated equipment, drilling of wells on the Akkulka and Kul Bas blocks, and on payments related to equipment for and construction of the Company's Phase 2 shallow gas development.