/EINPresswire.com/ -- GRAND CAYMAN, CAYMAN ISLANDS -- (Marketwired) -- 08/15/16 -- Tethys Petroleum Limited (TSX: TPL)(LSE: TPL) today announced its Results for the quarter ended June 30, 2016.

Q2 Financial Highlights (all figures reported in USD unless stated otherwise. 2015 amounts are for the quarter ended June 30, 2015).

--  Oil and gas revenue down 48% to USD3.5m (2015: USD6.8m);
--  Production expenses down 68% to USD1.3m (2015: USD4.2m);
--  G&A expenses down 60% to USD1.2m (2015: USD3.1m);
--  Loss of USD4.9m (2015: USD25.3m) due to lower depreciation, depletion
    and amortisation;
--  Capital expenditure down 92% due to lower spend on the Company's assets
    relating to Kazakhstan exploration and development and Tajikistan
    exploration;
--  Net debt increased as a result of interim finance obtained as part of
    larger strategic transactions which are ongoing.

Q2 Operational Highlights

Oil

--  Current quarter oil production averaged 965 bopd compared with 1,954
    bopd in Q2 2015, reflecting a natural decline in overall production as
    well as prolonged spring oil trucking disruption;
--  Oil production cost per barrel in the current quarter reduced to USD7.73
    compared with USD7.81 in Q2 2015 despite lower production volume as a
    result of cost reductions initiatives as well as the devaluation of the
    Kazakhstan currency, the Tenge;
--  Oil prices averaged USD7.94 per bbl in the quarter compared with
    USD13.00 per bbl in Q2 2015, a reduction of 39%, reflecting the fall in
    World oil price and the devaluation of the Tenge.

Gas

--  Current quarter gross gas production averaged 2,312 boe/d compared with
    3,250 boe/d in Q2 2015, reflecting a natural decline in overall
    production;
--  Gas production cost per Mcm in the current quarter reduced to USD16.84
    compared with USD22.90 in Q2 2015 despite lower production volume as a
    result of cost reduction initiatives as well as the Tenge devaluation;
--  An increase in gas price in local currency of over 50 percent was
    obtained from January 1, 2016, however, this was negatively affected in
    USD terms due to the Tenge devaluation.

Note: 6,000 cubic feet (169.9 cubic metres) of natural gas = 1 barrel of oil has been used and is based on the standard energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Q2 Corporate Highlights

--  All resolutions put to shareholders at the Annual General and Special
    Meeting held on May 31, 2016 were passed on a poll at the meeting
    including the transaction with Olisol;
--  The Company received the first USD1 million drawdown of a newly agreed
    USD10 million loan facility from a leading Kazakhstan bank;
--  Total and CNPC, the Company's partners in Tajikistan filed for
    arbitration proceedings at the International Court of Arbitration in
    relation to the Company's cash call defaults and the partners' notice to
    withdraw;
--  The full Q2 Results together with Management's Discussion & Analysis
    have been filed with the Canadian securities regulatory authorities.
    Copies of the filed documents may be obtained via SEDAR at www.sedar.com
    or on the Tethys website at www.tethyspetroleum.com. The summary
    financial statements are attached to this press release.

Cautionary Statements

This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to our operations and completion of the Olisol transaction. Such forward-looking statements reflect our current views with respect to future events and assume the completion of the Olisol transaction. These forward-looking statements are subject to certain risks and uncertainties, including the risk that the Olisol transaction will not receive required court and regulatory approvals, that closing conditions will not be satisfied or that one or more aspects of the Olisol transaction will be otherwise delayed and accordingly that the Olisol transaction will not be completed. See our Annual Information Form for the year ended December 31, 2015 for a description of risks and uncertainties relevant to our business, including our exploration activities.

About Tethys Petroleum

Tethys Petroleum's aim is to become the leading independent E&P Company in Central Asia, by exercising capital discipline, by generating cash flow from existing discoveries and by maturing large exploration prospects within our highly attractive frontier acreage.

Tethys Petroleum Limited
Consolidated Statement of Financial Position
(in thousands of US dollars)

                                                             As at
                                                     June 30,  December 31,
                                                         2016          2015
----------------------------------------------------------------------------

Non-current assets
Intangible assets                                      66,626        64,202
Property, plant and equipment                         107,903       113,397
Restricted cash                                         2,235         2,233
Investment in joint arrangements                            4             4
Trade and other receivables                             2,235         2,457
Deferred tax                                              215           226
----------------------------------------------------------------------------
                                                      179,218       182,519

Current assets
Cash and cash equivalents                                 700         3,272
Trade and other receivables                             4,747         3,710
Inventories                                               904           879
Restricted cash                                            65           215
----------------------------------------------------------------------------
                                                        6,416         8,076

----------------------------------------------------------------------------
Total assets                                          185,634       190,595
----------------------------------------------------------------------------

Non-current liabilities
Trade and other payables                                   93           133
Financial liabilities - borrowings                      2,114        22,873
Deferred tax                                           10,362        10,792
Provisions                                                878           846
----------------------------------------------------------------------------
                                                       13,447        34,644
Current liabilities
Financial liabilities - borrowings                     28,388         9,159
Derivative financial instruments                            6           275
Current taxation                                          460           398
Trade and other payables                               15,760        14,189
Provisions                                                147           360
----------------------------------------------------------------------------
                                                       44,761        24,381

----------------------------------------------------------------------------
Total liabilities                                      58,208        59,025

Equity
Share capital                                          40,000        33,696
Share premium                                         321,803       321,803
Other reserves                                         43,329        43,166
Accumulated deficit                                  (283,642)     (273,189)
Non-controlling interest                                5,936         6,094
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Total equity                                          127,426       131,570

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Total equity and liabilities                          185,634       190,595
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Tethys Petroleum Limited
Consolidated Statements of Comprehensive Income (Loss)
(in thousands of US dollars except per share information)

                               Three months ended       Six months ended
                                     June 30                 June 30
----------------------------------------------------------------------------
                                   2016        2015        2016        2015

Sales and other revenues          3,529       6,838       6,984      12,792

Sales expenses                     (733)     (1,279)     (1,467)     (2,381)
Production expenses              (1,328)     (4,159)     (2,524)     (6,767)
Depreciation, depletion and
 amortisation                    (2,927)    (20,614)     (5,783)    (21,288)
Administrative expenses          (1,230)     (3,103)     (3,025)     (5,924)
Restructuring costs                (676)     (1,613)     (1,423)     (1,932)
Transaction costs of assets
 held for sale                        -        (945)          -      (1,065)
Share based payments                (81)       (118)       (163)       (265)
Profit on sale of fixed
 assets                               -          29          10          43
Foreign exchange gain/(loss)         50        (208)        123        (215)
Fair value gain/(loss) on
 derivative financial
 instrument                          65      (1,547)        269        (469)
Profit/(loss) from jointly
 controlled entity                    -          15           -        (235)
Finance costs                    (2,012)     (1,949)     (3,942)     (2,527)
----------------------------------------------------------------------------
                                 (8,872)    (35,491)    (17,925)    (43,025)

----------------------------------------------------------------------------
Loss before tax from
 continuing operations           (5,343)    (28,653)    (10,941)    (30,233)

Taxation                            409       3,375         330       2,921

----------------------------------------------------------------------------
Loss from continuing
 operations                      (4,934)    (25,278)    (10,611)    (27,312)

Loss from discontinued
 operations net of tax                -         (36)          -         (77)

----------------------------------------------------------------------------
Loss and total comprehensive
 income                          (4,934)    (25,314)    (10,611)    (27,389)

Loss and total comprehensive
 income attributable to:
Shareholders                     (4,776)    (25,313)    (10,453)    (27,386)
Non-controlling interest           (158)         (1)       (158)         (3)

----------------------------------------------------------------------------
Loss and total comprehensive
 income                          (4,934)    (25,314)    (10,611)    (27,389)
----------------------------------------------------------------------------

Loss per share attributable
 to shareholders:
Basic and diluted - from
 continuing operations (USD)      (0.01)      (0.08)      (0.03)      (0.08)
Basic and diluted - from
 discontinued operations
 (USD)                                -           -           -           -
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Tethys Petroleum Limited
Consolidated Statements of Cash Flows
(in thousands of US dollars)

                                  Three months ended     Six months ended
                                        June 30               June 30
----------------------------------------------------------------------------
Cash flow from operating
 activities
Loss before tax from continuing
 operations                         (5,343)   (28,653)   (10,941)   (30,233)
Loss before tax from
 discontinued operations                 -        (36)         -        (77)
----------------------------------------------------------------------------

Adjustments for:
Share based payments                    81        118        163        265
Net finance cost                     2,012      1,949      3,942      2,527
Depreciation, depletion and
 amortisation                        2,927     20,614      5,783     21,288
Profit on sale of fixed assets         (10)       (29)       (10)       (43)
Fair value gain on derivative
 financial instruments                 (65)     1,547       (269)       469
Net unrealised foreign exchange
 (gain)/loss                          (293)       147       (357)        26
(Profit)/loss from jointly
 controlled entity                       -        (15)         -        235
Movement in provisions                (845)    (1,197)    (1,636)    (1,990)
Net change in working capital          (79)     1,474       (216)     2,115
----------------------------------------------------------------------------
Cash used in operating
 activities                         (1,615)    (4,081)    (3,541)    (5,418)
Corporation tax paid                   (21)        (4)       (21)      (134)
----------------------------------------------------------------------------
Net cash used in operating
 activities                         (1,636)    (4,085)    (3,562)    (5,552)

Cash flow from investing
 activities:
Interest received                        -         46          -         91
Expenditure on exploration and
 evaluation assets                    (177)    (2,737)      (455)    (3,942)
Expenditure on property, plant
 and equipment                        (165)    (1,297)      (281)    (2,039)
Proceeds from sale of fixed
 assets                                 33        113         33        113
Movement in restricted cash             (3)      (147)       148       (151)
Movement in advances to
 construction contractors             (203)        99       (199)       190
Movement in value added tax
 receivable                            206        368        428        719
Net change in working capital           61        605         39     (1,522)
----------------------------------------------------------------------------
Net cash used in investing
 activities                           (248)    (2,950)      (287)    (6,541)

Cash flow from financing
 activities:
Proceeds from issuance of
 borrowings, net of issue costs      1,500      9,100      3,500     18,235
Repayment of borrowings               (234)    (4,198)      (574)    (4,665)
Interest paid on borrowings           (544)      (554)    (1,713)      (908)
Movement in other non-current
 liabilities                           (21)       (27)       (68)       (56)
----------------------------------------------------------------------------
Net cash generated from
 financing activities                  701      4,321      1,145     12,606
Effects of exchange rate changes
 on cash and cash equivalents          750        669        132        561
----------------------------------------------------------------------------
Net (decrease)/increase in cash
 and cash equivalents                 (433)    (2,045)    (2,572)     1,074
Cash and cash equivalents at
 beginning of the period             1,133      6,987      3,272      3,868
----------------------------------------------------------------------------
Cash and cash equivalents at end
 of the period                         700      4,942        700      4,942
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Contacts:
Tethys Petroleum
info@tethyspetroleum.com
Web: http://www.tethyspetroleum.com

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