Tethys Petroleum Press Release: Interim Results and Corporate Update

Rhea-AI Summary

Tethys Petroleum has released its interim financial results for Q1 2024, showing a significant drop in oil and gas sales to $1.9 million, down 80% from $9.9 million in Q1 2023 due to halted oil production. The company reported a net loss of $983,000 compared to a $2.5 million profit in the same period last year.

Operationally, test production began at the KBD-10 and KBD-11 wells, producing a total of 8,200 tons. KBD-10 currently produces about 25 tons per day, down from an initial 300 tons per day. KBD-11 is set to test a new zone shortly.

Tethys is working to acquire a commercial license for oil production and continues to negotiate gas contracts with QazaqGaz, with gas fields remaining shut in.

Positive

• Test production commenced at KBD-10 and KBD-11 wells, totaling 8,200 tons.
• KBD-11 is set to perforate a new Upper Barremian zone, indicating ongoing exploration and potential for increased production.

Negative

• Oil and gas sales dropped by 80% to $1.9 million in Q1 2024 from $9.9 million in Q1 2023.
• The company reported a net loss of $983,000 compared to a profit of $2.5 million in the previous year.
• Current production at KBD-10 decreased to 25 tons per day from an initial 300 tons per day.
• KBD-11 averaged only 75 tons per day in the first zone tested.
• The company is still waiting for a commercial license for oil production.
• Gas fields remain shut in due to ongoing negotiations with QazaqGaz.

Grand Cayman, Cayman Islands--(Newsfile Corp. - May 17, 2024) - Tethys Petroleum Limited (TSXV: TPL) ("Tethys" or the "Company") today announced that it has filed its interim results for the three months ended March 31, 2024 with the Canadian securities regulatory authorities comprising its Audited Financial Statements together with Management's Discussion and Analysis and other required forms. Copies of the filed documents may be obtained via SEDAR at www.sedar.com or on Tethys' website at www.tethys-group.com.

Financial highlights

Oil and gas sales decreased by 80% to $1.9 million in the first quarter of 2024 from $9.9 million in 2023 due primarily to halting of the oil production. The loss for the period was $983K compared with a profit of $2.5 million in 2023.

Operations update

Test production from the KBD-10 and KBD-11 wells commenced on April 8^th, and has totaled about 8,200 tons. Current production on KBD-10 is about 25 tons per day from an Upper Barremian zone after averaging about 300 tons per day from the Main Barremian zone. KBD-11 is planned to perforate a new Upper Barremian zone tomorrow after averaging about 75 tons per day in the first Barremian zone tested.

Regulatory update

The Company is in the process of trying to obtain the commercial license for the production and sale of oil.

Gas Contract Negotiations

The Company is continuing to pursue a resolution with QazaqGaz in regards to payment and price for gas production. The gas fields remains shut in.

About Tethys

Tethys is focused on oil and gas exploration and production activities in Central Asia and the Caspian Region. Tethys believes that significant potential exists in both exploration and in discovered deposits in the area.

Disclaimer

Some of the statements in this document are forward-looking. No part of this announcement constitutes, or shall be taken to constitute, an invitation or inducement to invest in the Company or any other entity and shareholders of the Company are cautioned not to place undue reliance on the forward-looking statements. Save as required by applicable law, the Company does not undertake to update or change any forward-looking statements to reflect events occurring after the date of this announcement.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information:

Tethys Petroleum
Casey McCandless
Chief Financial Officer
901-763-4001 

info@tethys-group.com
www.tethys-group.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/209798

FAQ

What were Tethys Petroleum's oil and gas sales for Q1 2024?

Oil and gas sales for Q1 2024 were $1.9 million, an 80% decrease from $9.9 million in Q1 2023.

What was Tethys Petroleum's net loss for Q1 2024?

Tethys Petroleum reported a net loss of $983,000 for Q1 2024.

When did test production start at Tethys Petroleum's KBD-10 and KBD-11 wells?

Test production at the KBD-10 and KBD-11 wells started on April 8, 2024.

How much did Tethys Petroleum produce from the KBD-10 and KBD-11 wells?

The KBD-10 and KBD-11 wells produced a total of about 8,200 tons during test production.

What is the current production rate at Tethys Petroleum's KBD-10 well?

The current production rate at the KBD-10 well is about 25 tons per day.

Why did Tethys Petroleum's oil and gas sales decrease in Q1 2024?

The decrease in oil and gas sales was primarily due to the halting of oil production.

What is the status of Tethys Petroleum's commercial license for oil production?

Tethys Petroleum is in the process of obtaining a commercial license for oil production.

What is the status of Tethys Petroleum's gas fields?

Tethys Petroleum's gas fields remain shut in as the company continues negotiations with QazaqGaz.