Tethys Petroleum has announced its half year and second quarter 2009 financial results, which are underscored by a 79% increase in revenues over the second quarter of last year and a five fold increase over the first quarter of this year.
The Company reports financial results in accordance with International Financial Reporting Standards ("IFRS").
- Production revenues for the quarter from Kazakhstan and Uzbekistan totalled some US $2.8 million compared to US $1.6 million for the same period in 2008 and $0.5 million for Q1 2009. The newly acquired North Urtabulak oil project in Uzbekistan contributed approximately US $1.6 million of the Q2 2009 revenues. Oil production from the North Urtabulak field attributable to Tethys in Q2 2009 averaged 914 barrels of oil per day ("bopd") compared to current net production which is some 1,000 bopd.
- Gas production from the Kyzyloi Field in Kazakhstan increased by 236% in Q2 2009 compared to Q1 2009 with the work on the upgrading of the Kyzyloi production system being completed (to take Phase 2 Akkulka Field gas). However, because of restrictions further up in the Bukhara-Urals gas trunkline Kyzyloi gas output was reduced to approximately half of its planned production level with effect from the middle of May averaging some 400 thousand cubic meters a day (Mcm/d) (14.1 million cubic feet a day (MMcf/d)) for the quarter. As a result of this reduction in the Kyzyloi output the level of revenue generated in Kazakhstan in Q2 2009 was less than anticipated at approximately US $1.2 million. This restriction has now been removed and gas production is currently some 520 Mcm/d (18.4 MMcf/d) to be progressively increased to 566 Mcm/d (20MMcf/d).
- A net loss of approximately US $5.6 million was recorded in Q2, 2009 compared to a net loss of approximately US $5.0 million for the same period in 2008.
- Capital expenditure of approximately US $4.8 million was incurred in Q2, 2009 compared to US $9.6 million for the same period in 2008.