Tethys Petroleum Limited announces third quarter 2012 financial results
Thursday, Nov 15, 2012Tethys Petroleum today announced its third quarter 2012 financial results. The results are highlighted by a 46% increase in production revenues over the third quarter of last year.
The 9 months period in 2012 has seen a substantial increase in oil production and revenue from the Doris oil field in Kazakhstan with a small drop in corporate administrative costs over the same period. It is forecast that both these trends will continue into 4Q 2012. On the revenue side both October's and November's average oil production figures have so far contributed toward the best quarter of oil production in Kazakhstan to date. October oil production averaged approximately 3,700 bopd and it is forecast that Novembers' production figures will exceed this number. These figures demonstrate the optimisation of the trucking operation in Kazakhstan is coming to fruition which has been the main restriction on maximum production to date, not the production capability of the wells.
On the costs side in Q3 the Company has initiated a review of all costs with a particular focus on administrative expenses. The objective of this exercise is first and foremost to review all areas with a view to reducing costs but particularly administrative costs, and secondly to review the categorization of costs to ensure that the Company is reporting consistently with other similar oil and gas companies, which will facilitate appropriate comparison within its peer group.
Some of these measures can be seen in a 22% reduction in the Q3 2012 costs over the Q2 2012 costs and in the 8% reduction against Q3 2011, but it is expected most of the effect will be realised in the quarters to come as this assessment and resulting action takes some time to implement. This cost reduction exercise does not in anyway reflect the growth prospects of the Company which, as can be seen from the higher production and revenue growth in Kazakhstan and the recent signing of the MOU for a Tajikistan farm-in partner, are very good.
The Company reports financial results in accordance with International Financial Reporting Standards ("IFRS").
These highlights along with other operational and financial details will be further discussed in a scheduled conference call. Details of the conference call can be found below.
A conference call will be held at 10:30 AM EST US and Canada and 15:30 PM GMT European time on Thursday, November 15, 2012. The North American conference call number is ((866) 202-3048) and the outside North America conference call number is (+1 (617) 213-8843). The conference call code to use is (32537707). Please call in about 10 minutes before the starting time in order to be patched into the call.
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