Tethys Petroleum Announces Interim Results and Corporate Update
Tethys Petroleum (TSXV: TPL) reported mixed Q1 2025 financial results, with oil and gas sales doubling to $4.0 million from $1.9 million in Q1 2024, and a net profit of $0.3 million compared to a $1 million loss last year. Despite the improvement, revenues fell short of management expectations due to multiple operational challenges.
The company faces production constraints including logistics issues, gas-to-oil ratio (GOR) increases requiring reduced production to ~250 tons/day (below the licensed 485 tons/day), and mini-refinery buyers' limitations following naptha export elimination. Additionally, spring weather conditions affected road accessibility.
Tethys is currently conducting seismic surveys through its DMS subsidiary on Aral 4 and Diyar blocks, with plans to identify and drill exploration wells by end of 2026, subject to regulatory approvals.
Tethys Petroleum (TSXV: TPL) ha riportato risultati finanziari contrastanti nel primo trimestre 2025, con le vendite di petrolio e gas raddoppiate a 4,0 milioni di dollari rispetto a 1,9 milioni nel primo trimestre 2024, e un utile netto di 0,3 milioni di dollari rispetto a una perdita di 1 milione dell'anno precedente. Nonostante il miglioramento, i ricavi sono risultati inferiori alle aspettative della direzione a causa di molteplici difficoltà operative.
L'azienda si trova ad affrontare vincoli produttivi, tra cui problemi logistici, un aumento del rapporto gas-petrolio (GOR) che ha richiesto una riduzione della produzione a circa 250 tonnellate/giorno (sotto la licenza di 485 tonnellate/giorno), e limitazioni da parte degli acquirenti delle mini-raffinerie a seguito dell'eliminazione dell'esportazione di nafta. Inoltre, le condizioni meteorologiche primaverili hanno influenzato l'accessibilità stradale.
Tethys sta attualmente conducendo indagini sismiche tramite la sua controllata DMS sui blocchi Aral 4 e Diyar, con l'obiettivo di individuare e perforare pozzi esplorativi entro la fine del 2026, subordinatamente alle approvazioni normative.
Tethys Petroleum (TSXV: TPL) reportó resultados financieros mixtos en el primer trimestre de 2025, con ventas de petróleo y gas que se duplicaron a 4,0 millones de dólares desde 1,9 millones en el primer trimestre de 2024, y un beneficio neto de 0,3 millones de dólares frente a una pérdida de 1 millón el año pasado. A pesar de la mejora, los ingresos estuvieron por debajo de las expectativas de la gerencia debido a múltiples desafíos operativos.
La compañía enfrenta limitaciones en la producción, incluyendo problemas logísticos, un aumento en la relación gas-petróleo (GOR) que ha obligado a reducir la producción a aproximadamente 250 toneladas/día (por debajo de las 485 toneladas/día autorizadas), y restricciones por parte de los compradores de mini-refinerías tras la eliminación de la exportación de nafta. Además, las condiciones climáticas primaverales afectaron la accesibilidad vial.
Tethys está actualmente realizando estudios sísmicos a través de su subsidiaria DMS en los bloques Aral 4 y Diyar, con planes para identificar y perforar pozos exploratorios antes de finales de 2026, sujeto a aprobaciones regulatorias.
Tethys Petroleum (TSXV: TPL)는 2025년 1분기 재무 실적에서 혼재된 결과를 보고했으며, 석유 및 가스 판매가 2024년 1분기 190만 달러에서 400만 달러로 두 배 증가했고, 순이익은 30만 달러로 전년 100만 달러 손실에서 흑자로 전환되었습니다. 개선에도 불구하고, 여러 운영상의 어려움으로 매출은 경영진 기대에 미치지 못했습니다.
회사는 물류 문제, 가스-오일 비율(GOR) 증가로 인해 생산량을 약 250톤/일(허가된 485톤/일보다 낮음)로 줄여야 하는 제약, 그리고 나프타 수출 중단에 따른 미니 정유소 구매자의 제한 등 생산 제약에 직면해 있습니다. 또한 봄철 기상 조건으로 도로 접근성에도 영향을 받았습니다.
Tethys는 현재 자회사 DMS를 통해 Aral 4 및 Diyar 블록에서 지진 탐사를 진행 중이며, 규제 승인에 따라 2026년 말까지 탐사정 식별 및 시추를 계획하고 있습니다.
Tethys Petroleum (TSXV : TPL) a publié des résultats financiers mitigés pour le premier trimestre 2025, avec des ventes de pétrole et de gaz ayant doublé à 4,0 millions de dollars contre 1,9 million au premier trimestre 2024, et un bénéfice net de 0,3 million de dollars comparé à une perte d’un million l’an passé. Malgré cette amélioration, les revenus sont restés inférieurs aux attentes de la direction en raison de plusieurs défis opérationnels.
L’entreprise fait face à des contraintes de production, notamment des problèmes logistiques, une augmentation du ratio gaz-pétrole (GOR) nécessitant une réduction de la production à environ 250 tonnes/jour (en dessous de la limite autorisée de 485 tonnes/jour), ainsi que des limitations des acheteurs de mini-raffineries suite à l’élimination des exportations de naphta. De plus, les conditions météorologiques printanières ont affecté l’accessibilité des routes.
Tethys réalise actuellement des relevés sismiques via sa filiale DMS sur les blocs Aral 4 et Diyar, avec l’intention d’identifier et de forer des puits d’exploration d’ici fin 2026, sous réserve des approbations réglementaires.
Tethys Petroleum (TSXV: TPL) meldete gemischte Finanzergebnisse für das erste Quartal 2025, wobei die Öl- und Gasverkäufe sich von 1,9 Millionen im ersten Quartal 2024 auf 4,0 Millionen verdoppelten und ein Nettoergebnis von 0,3 Millionen im Vergleich zu einem Verlust von 1 Million im Vorjahr erzielt wurde. Trotz der Verbesserung blieben die Einnahmen aufgrund mehrerer betrieblicher Herausforderungen hinter den Erwartungen des Managements zurück.
Das Unternehmen sieht sich mit Produktionsbeschränkungen konfrontiert, darunter logistische Probleme, ein Anstieg des Gas-Öl-Verhältnisses (GOR), der eine Produktionsreduzierung auf etwa 250 Tonnen/Tag (unter der lizenzierten Menge von 485 Tonnen/Tag) erforderlich macht, sowie Beschränkungen der Käufer von Mini-Raffinerien nach dem Wegfall des Naphta-Exports. Zudem beeinträchtigten Frühlingswetterbedingungen die Straßenzugänglichkeit.
Tethys führt derzeit seismische Untersuchungen über seine Tochtergesellschaft DMS in den Blöcken Aral 4 und Diyar durch und plant, bis Ende 2026 Explorationsbohrungen zu identifizieren und durchzuführen, vorbehaltlich behördlicher Genehmigungen.
- Oil and gas sales increased 104% year-over-year to $4.0 million in Q1 2025
- Turned $1 million loss in Q1 2024 to $0.3 million profit in Q1 2025
- Received production license in November 2024 after shutdown period
- Completed seismic acquisition on Aral 4 block and commenced work on Diyar block
- Revenue fell below management expectations in Q1 2025
- Production reduced to 250 tons/day due to high gas-to-oil ratio, well below license capacity of 485 tons/day
- Cash flow constraints affecting ability to fund required capital expenses
- Facing challenges with mini-refineries' ability to prepay and manage logistics due to naptha export elimination
- Delayed payments for gas and new gas contract affecting operations
Grand Cayman, Cayman Islands--(Newsfile Corp. - May 29, 2025) - 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, 2025 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 increased by
Revenues for Q1 were improved from Q1 2024 but were disappointing relative to management expectations. Tethys received a production license in November 2024 after a period of being shut down. There are a number of factors which can influence the level of oil production. In addition to the limitation of the logistics and what is allowed under the production license (currently 485 tons/day), Tethys is required to have gas treatment for the associated gas. Tethys's model has been to sell the oil for delivery in the oil field and is therefore dependent on the oil buyers in terms of the logistics. The elimination of the export of naptha has damaged the overall profitability of the mini-refineries who have been the traditional purchases of Tethys oil. This appears to have not only impacted the price that Tethys can expect to receive but may have also impacted the ability of the mini-refineries to prepay for the oil and their ability to manage the necessary logistics. Given the remote location of the Kulbas field, an oil buyer needs to coordinate the trucking, the rail cars and coordinate with any rail terminal involved in the transshipment. The condition of the roads in March was a factor as the area went through a spring thaw as temperatures got above freezing. Given above average precipitation, it appeared the roads remained inoperable for a longer period than usual.
While management believes the logistics issues have been largely resolved, a new problem has appeared. The ratio of gas per oil produced (the GOR) has increased. While long term getting gas from the oil production will be a positive, short term it is a negative as Tethys doesn't have the necessary facilities in place to treat the full amount of gas being produced. As a result, production rates have been reduced of late to about 250 tons/day so that Tethys won't have to flare the excess gas. While it is hoped that the high GOR level may drop back to previous levels or that certain wells and zones with lower GOR ratios may be enhanced to increase the oil production without increasing the GOR, there is no certainty in this regard. Tethys is working on plans to increase the gas utilization capacity of the Kulbas field so that production can be increased to the allowed levels. The delay in getting paid for its gas, getting a new gas contract and getting the oil production license have had residuary effects on the level of cash and the Tethys's ability to fund required capital expenses.
Tethys through its DMS subsidiary is acquiring seismic on two of its exploration blocks. The acquisition for the seismic on Aral 4 has been recently completed and the seismic crew contracted for the work has moved to acquire the seismic on the Diyar block. The seismic will then be more fully processed and interpreted to identify potential sites to consider for exploration. DMS will then need to go through a permitting process to get regulatory approval before it can drill any well. If a favorable prospect and well site is developed, the goal is to drill the well(s) by the end of 2026.
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 | info@tethys-group.com |
| 901-763-4001 | www.tethys-group.com |
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/253894
FAQ
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How has the elimination of naptha exports affected Tethys Petroleum's operations?
