2013-05-15

First Quarter 2013 Financial Results

    Revenues Increased by 94%

GRAND CAYMAN, CAYMAN ISLANDS -- (Marketwired) -- 05/15/13 -- Tethys Petroleum Limited (TSX:TPL)(LSE:TPL) today announced its first quarter 2013 financial results. The results are highlighted by a 94% increase in revenues over the first quarter of last year.

The Company reports financial results in accordance with International Financial Reporting Standards ("IFRS").

RECENT HIGHLIGHTS

Q1 2013 oil and gas sales of USD12.6 million (Q1 2012: USD6.5 million)
Q1 2013 cash profit of USD2.8 million compared to a cash loss of USD1.7 million in Q1 2012
A new contract was signed to sell gas in Kazakhstan at USD2.56 per Mcf (USD90 per Mcm)
Q1 2013 accounting loss of USD4.3 million (Q1 2012: USD6.8 million)
Q1 2013 net cash generated from operating activities of USD2.6 million compared to Q1 2012 net cash used in operating activities of USD3.7 million
Production and Reserves Highlights

Oil production (before the deduction of local governments share or taxation) increased from 1,785 bopd (Q1 2012) to 3,795 bopd (Q1 2013), an increase of 112%. Similarly, boepd production has increased from 5,117 boepd (Q1 2012) to 6,366 boepd (Q1 2013) an increase of 24%.

The full Q1 Results together with a Management 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 Tethys' website at www.tethyspetroleum.com. The summary financial statements are attached to this press release.

The above 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:

Conference Call:

A conference call will be held at 8:00 AM Eastern Standard Time 1:00 PM British Summer Time on Thursday, May 16, 2013. The North American conference call number is 866-515-2910 and the outside North America conference call number is +1 617-399-5124. The conference call code to use is 20157467. Please call in about 10 minutes before the starting time in order to be patched into the call.

Webcast:

The call is being webcast and can be accessed at:

http://www.media-server.com/m/acs/2b6e312066466539eb1b2289cb88175f

Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Kazakhstan, Tajikistan and Uzbekistan. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.

This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to our operations. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions. See our Annual Information Form for the year ended December 31, 2012 for a description of risks and uncertainties relevant to our business, including our exploration activities. A barrel of oil equivalent ("boe") conversion ratio of 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.

Tethys Petroleum Limited
Condensed Consolidated Statement of Financial Position
(Unaudited)
(in US Dollars)
As at   
March 31, 2013          December 31, 2012   
$'000           $'000   
Non-current assets                      
Property, plant and equipment       117,570         121,097 
Intangible assets       107,587         107,374 
Restricted cash     1,561           1,543   
Prepayments and other receivables       5,518           6,444   
Investment in jointly controlled entity     1,116           1,116   
233,352         237,574 
Current assets                      
Inventories     1,233           2,046   
Trade and other receivables     7,766           7,703   
Loan receivable from jointly controlled entity      2,710           2,403   
Cash and cash equivalents       1,358           1,750   
Restricted cash     477         477 
13,544          14,379  
Total assets        246,896         251,953 
Equity attributable to shareholders                     
Share capital       28,678          28,671  
Share premium       306,770         306,725 
Other reserves      42,066          41,705  
Accumulated deficit     (169,614    )       (165,385    )
Non-controlling interest        8,339           8,437   
Total equity        216,239         220,153 
Non-current liabilities                     
Financial liabilities - borrowings      5,359           3,688   
Deferred taxation       3,643           2,912   
Trade and other payables        298         351 
Asset retirement obligations        583         524 
9,883           7,475   
Current liabilities                     
Financial liabilities - borrowings      10,526          13,625  
Derivative financial instruments - warrants     1,405           523 
Deferred revenue        99          1,713   
Trade and other payables        8,275           8,231   
Current tax     469         233 
20,774          24,325  
Total liabilities       30,657          31,800  
Total shareholders' equity and liabilities      246,896         251,953 
Tethys Petroleum Limited
Condensed Consolidated Statement of Comprehensive Income
(Unaudited)
For the three months ended March 31, 2013
(in US Dollars)
2013            2012    
$'000           $'000   
(re-presented)
Sales and other revenues        12,553          6,487   
Total revenue and other income      12,553          6,487   
Sales expenses      (645    )       -   
Production expenses     (4,062  )       (2,910  )
Depreciation, depletion and amortisation        (4,979  )       (3,036  )
Business development expenses       (502    )       (373    )
Administrative expenses     (4,670  )       (4,797  )
Share based payments        (331    )       (603    )
Foreign exchange gain / (loss) - net        131         (64 )
Fair value loss on derivative financial instrument      (430    )       (896    )
Profit/ (loss) from jointly controlled entity       257         (62 )
Net finance costs       (682    )       (454    )
Loss before taxation        (3,360  )       (6,708  )
Taxation        (967    )       (140    )
Loss for the period     (4,327  )       (6,848  )
Loss attributable to:                       
Shareholders        (4,229  )       (6,748  )
Non-controlling interest        (98 )       (100    )
Loss for the period     (4,327  )       (6,848  )
Basic and diluted       (0.01   )       (0.02   )
Tethys Petroleum Limited
Condensed Consolidated Statement of Cash Flows
(Unaudited)
For the three months ended March 31, 2013
(in US dollars)
2013        2012    
$'000       $'000   
Cash flow from operating activities                 
Loss before taxation for the period     (3,360  )   (6,708  )
Adjustments for                 
Share based payments        331     603 
Net finance cost        682     454 
Depreciation, depletion and amortization        4,979       3,036   
Fair value loss on derivative financial instrument      430     896 
Net unrealised foreign exchange (gain) / loss       (48 )   35  
Profit / (loss) from jointly controlled entity      (257    )   62  
Deferred revenue        (1,614  )   (509    )
Net change in non-cash working capital      1,419       (1,562  )
Net cash generated / (used) in operating activities     2,562       (3,693  )
Cash flow from investing activities                 
Interest received       50      88  
Expenditure on exploration and evaluation assets        (234    )   (995    )
Expenditures on property, plant and equipment       (1,030  )   (214    )
Investment in restricted cash       (18 )   261 
Investment in jointly controlled entity     -       (3  )
Movement in advances to construction contractors        42      367 
Value added tax receivable      884     57  
Net change in non-cash working capital      (945    )   (1,279  )
Net cash (used) in investing activities     (1,251  )   (1,718  )
Cash flow from financing activities                 
Proceeds from issuance of borrowings, net of issue costs        737     5,826   
Repayment of borrowings     (1,862  )   (6,615  )
Interest paid on long-term borrowings and other non-current payables        (561    )   (204    )
Proceeds from issuance of equity, net of issue costs        48      -   
Other non-current liabilities       (71 )   (74 )
Net cash (used) in financing activities     (1,709  )   (1,067  )
Effects of exchange rate changes on cash and cash equivalents       6       (88 )
Net decrease in cash and cash equivalents       (392    )   (6,566  )
Cash and cash equivalents at beginning of the period        1,750       10,746  
Cash and cash equivalents at end of the period      1,358       4,180   

North America: Tethys Petroleum Limited
Sabin Rossi - All Investor Queries
Vice President Investor Relations
Office: +1 416-941-1257
+1 416-947-0167 (FAX)
info@tethyspetroleum.com
Europe: Tethys Petroleum Limited
Veronica Seymour - All Media Queries
Vice President Corporate Communications
Office: +44 1481 725911
+44 1481 725922 (FAX)
www.tethyspetroleum.com
Mobile site: m.tethyspetroleum.com
Corporate Brokers:
FirstEnergy
Hugh Sanderson / David Van Erp
Office: + 44 207 448 0200
Seymour Pierce
Richard Redmayne / Stewart Dickson
Office: +44 207 107 8000
Asia Pacific: Quam IR
Anita Wan
Office phone/fax: +852 2217 2999
FTI Consulting
Ben Brewerton / Natalia Erikssen
Office: +44 207 831 3113

Source: Tethys Petroleum Limited