Tethys Petroleum Limited today announced its third quarter 2011 financial results. The results are highlighted by a 116% increase in production revenues over the third quarter of last year.
The Company reports financial results in accordance with International Financial Reporting Standards (“IFRS”).
– The average oil and gas production per production day for the nine months ended September 30, 2011 was 6,111 boe/d compared to 4,603 boe/d in the same period of 2010.
– Production revenues from Kazakhstan and Uzbekistan in the nine months ended September 30, 2011 totalled some US$15.5 million compared to US$11.3 million in the same period of 2010, representing a 37% increase.
– Cash balance at September 30, 2011 was US$18.4 million compared to US$12.9 million at September 30, 2010.
– Net loss for the nine months to September 30, 2011 was US$17.6 million compared to $18.4 million in the same period of 2010.
– Capital expenditure, excluding the joint venture in Tajikistan, in the nine months ended September 30, 2011 was US$36.8 million compared to US$23.2 million as at September 30, 2010.
– Total assets at September 30, 2011 were US$255.1 million compared to US$182.1 million at September 30, 2010.
– The Doris oil production facilities in Kazakhstan were completed and the trucking of oil commenced from this location at a rate of over 1,500 bopd.
– The AKD05 Kazakh appraisal well flowed at 1,568 barrels per day of good quality (45 degrees API) oil during testing. Flow data indicate that the well would be capable of flowing around 3,000 barrels per day with reconfiguration of the production facilities.
– Tethys commenced trading on the main market of the London Stock Exchange under the ticker symbol “TPL”.
The AKD06 Doris appraisal well is currently undergoing testing with results expected this month. This well is located on an amplitude anomaly derived from detailed spectral analysis of the new 3D seismic dataset and was located primarily to target the Cretaceous sandstone interval, the most prolific producing horizon in the area, with other stratigraphic targets being secondary. It is hoped this well will extend the known producing area of the Doris oil discovery at this horizon and provide sufficient data to move on and drill further wells to test the full extent of the discovered field.
The Kalypso (KBD01) wildcat exploration well will undergo a comprehensive testing programme on both the Carboniferous and Jurassic horizons following agreement and approvals from the appropriate Kazakh authorities. The well reached total depth in September, with electric logs being run and indicating two potential Jurassic targets and some 100m of gross pay from a depth of 4,128 metres in what is interpreted to be Carboniferous limestones with this zone most likely to require acid and fracture stimulation, a common completion process implemented in similar fields in the area.
Work is ongoing on the construction of a new rail loading facility closer to the field which will enable oil production to increase. This terminal should be completed and operational before the end of this year.
The Beshtentak well BST20 has recently been worked over by applying modern perforating and acidisation techniques and applying natural gas lift. The well has been producing over 500 barrels of oil per day (“bopd”), with associated gas on a restricted choke (10 mm – 25/64 inch) with a flowing tubing head pressure of 26 atmospheres (377 psi). The oil has an API gravity of 38 degrees and no water is being produced. The well has been placed on oil production and the gas tied into the nearby local gas grid. Initial sales agreements have been signed and the first payments from oil sales have been received. The well is still on test production so will be produced on varying rates until year-end, but after that it is expected that this well will be put on production continually at more than 500 bopd. There are other workover candidates on the Beshtentak field which has gross prospective resources of 11.7 million barrels of oil and 16.1 billion cubic feet (0.23 billion cubic metres) of gas as quoted by the Company’s independent reserves and resources assessment effective December 31, 2010.
The East Olimtoi (EOL09) exploration well testing programme is continuing with additional specialist equipment due to arrive at the field in November 2011 to attempt to establish continual flow from the Alai zone, where oil has been recovered.
The Persea 1 exploration well, located near the town of Kurgon-Teppa in the south-west part of the PSC area, is primarily targeting the Bukhara limestone formation in a four-way dip closed structure with the overlying Alai formation forming a potential secondary target. The well is currently at a depth of 2,425 meters. The planned total depth of this well is 2,700 metres and it is expected that this will be reached in later November 2011.
As well as an active shallower drilling programme, Tethys continues to progress its longer term strategy of acquiring sufficient data to locate and drill a deep exploration well below the regional salt layer, drilling to targets zones that are prolific producers in the adjacent Amu-Darya basin in Uzbekistan and Turkmenistan but that have never been tested in Tajikistan. The Amu-Darya has some of the biggest gas-condensate fields in the world and Tethys believes Tajikistan has the same potential. To this effect, Tethys continues its comprehensive geophysical data gathering with the evaluation of the recently acquired graviometry data which was shot over a considerable amount of the 35,000 km2 contract area. This complements and adds to the 693 km regional seismic program carried out in 2009-2010. After fully evaluating this additional data, Tethys hopes to then focus on the most prospective area with the intention of spudding a deep well at the end of 2012.