Tethys Petroleum Corporate Update
Rhea-AI Summary
Tethys Petroleum (TSXV: TPL) has provided an operational update from Kazakhstan. The company has resumed gas production at Akkulka and Kyzloi fields on April 10, 2025, with 20 out of 21 wells operational, achieving stable production of 205,000-210,000 cubic meters per day. Oil production faced temporary reductions in March due to severe weather affecting shipments, but has recently averaged 320 tons daily.
The company's latest reserve report by McDaniel and Associates Consultants shows that while total proved and probable reserves remain stable year-over-year, the Net Present Value (NPV) at 10% discount rate decreased to $560 million from $629 million in 2023, representing an 11% decline. This reduction is attributed to lower Brent crude prices, wider Brent export differentials, and government restrictions on refined product exports impacting domestic refinery pricing.
AI-generated analysis. Not financial advice.
Positive
- Gas production successfully resumed with 95% of wells operational (20 out of 21)
- Total proved and probable reserves maintained stable year-over-year
Negative
- 11% decrease in NPV from $629M to $560M
- Weather-related disruptions affecting oil production and shipments
- Increased tax and cost burden on exports
- Reduced domestic refinery prices due to government restrictions
News Market Reaction – TETHF
On the day this news was published, TETHF gained 34.85%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Grand Cayman, Cayman Islands--(Newsfile Corp. - April 24, 2025) - Tethys Petroleum Limited (TSXV: TPL) ("Tethys" or the "Company") is pleased to provide an update on the Company's operations in the Republic of Kazakhstan.
Operation update
On April 10, 2025, Tethys resumed production on the Akkulka and Kyzloi gas fields. Twenty out of twenty-one wells are operating and production has stabilized at a daily level of about 205,000 to 210,000 cubed meters per day.
Oil production in March was negatively impacted by severe weather conditions, which limited the amount of oil that could be shipped. As a result, the production levels were temporarily reduced. Over the last three days oil production has averaged about 320 tons per day.
Reserve report
Tethys engaged McDaniel and Associates Consultants to provide a reserve report as of December 31, 2024. This report has now been completed and was prepared in compliance with NI51-101, Standards of Disclosure for Oil and Gas Activities and the COGE Handbook. Overall, the total proved and total proved + probable reserves are about the same as last year, but Net Present Value calculations are lower primarily due to lower oil prices. The Total Proved and Probable NPV using a
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While the volumes of Total Proved and Total Proved + Probable reserves remain broadly consistent with the prior year, the Net Present Value (NPV) has declined. This reduction is primarily due to a decrease in Brent crude prices and a widening of Brent export differentials, which have lowered netbacks. Additionally, government restrictions on refined product exports have reduced the prices that domestic refineries can offer for crude oil. At the same time, the fiscal and regulatory framework imposes a significantly higher tax and cost burden on exports, limiting the benefit of accessing international markets. These factors have had a greater impact on independent and foreign producers, who lack access to state-linked infrastructure and domestic sales channels.
About Tethys
Tethys is focused on oil and gas exploration and production activities in Central Asia and the Caspian Region.
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
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/249728