Tethys Petroleum Press Release: Corporate Update

Rhea-AI Summary

Tethys Petroleum (OTC: TETHF) reported operational and regulatory updates from Kazakhstan on December 5, 2025. Oil production averaged about 380 tonnes/day last month from wells KBD-02, KBD-06 and KBD-07. Repair of a second gas turbine raised utilization to ~480 tonnes/day as of the announcement, and the company expects ~530 tonnes/day within a week after commissioning a second gas compressor. Upgrades to the Central Processing Facility at Kul-Bas are underway, with commissioning targeted by mid-January 2026. A Gas Processing Facility and 6" x 18 km pipeline are at design stage, targeting operation by October 2026. Natural gas production averages 222,000 m3/day from 21 wells. The company applied to transition Contract No. 1897 to the Production Period on November 27, 2025 (statutory 20 working-day review). The Special Committee continues dialogue with Fincraft Group on a non-binding acquisition intent.

Positive

• Oil production averaging 380 tonnes/day last month
• Gas turbine repair increased capacity to ~480 tonnes/day
• Second compressor expected to raise output to ~530 tonnes/day within a week
• Gas production averaging 222,000 m3/day from 21 wells
• Central Processing Facility upgrade targeting mid-January 2026 commissioning

Negative

• Kul-Bas Production transition subject to Ministry review (variable timing)
• Second compressor and Gas Processing Facility not yet operational (execution risk)

News Market Reaction

+23.14%

1 alert

+23.14% News Effect

On the day this news was published, TETHF gained 23.14%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Oil production: 380 tons/day Current oil capacity: 480 tons/day Target oil production: 530 tons/day +5 more

8 metrics

Oil production 380 tons/day Average from wells KBD-02, KBD-06, KBD-07 over last month

Current oil capacity 480 tons/day Expected capacity after second gas turbine repair

Target oil production 530 tons/day Anticipated after second compressor starts within a week

Gas production 222,000 m³/day Natural gas output from Kyzyloi and Akkulka fields

Producing gas wells 21 wells Kyzyloi and Akkulka gas fields

Gas pipeline length 18 km Design stage 6" gas pipeline project

Review period 20 working days Statutory review for Kul-Bas Production Period application

Application date November 27, 2025 Submission to Ministry of Energy for Contract No. 1897

Market Reality Check

Price: $1.26 Vol: Volume 2,920 is below 20-...

low vol

$1.26 Last Close

Volume Volume 2,920 is below 20-day average of 7,945 (relative volume 0.37x). low

Technical Price 1.091 is trading above 200-day MA at 0.67, reflecting a pre-news uptrend.

Peers on Argus

TETHF gained 23.14% while peers were mixed: TRLM up 100%, HMENF, RECAF and PIFYF...

TETHF gained 23.14% while peers were mixed: TRLM up 100%, HMENF, RECAF and PIFYF modestly negative and MSCH flat. No consistent sector-wide move is evident.

Historical Context

5 past events · Latest: Dec 05 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 05	Operations update	Positive	+23.1%	Higher oil capacity, gas projects and production-period application for Kul-Bas.
Nov 19	Legal and M&A update	Positive	+3.4%	Court win on arbitration award and increased CAD 1.75/share Fincraft proposal.
Nov 14	Interim results	Positive	-3.1%	Stronger sales and profit but alongside an appellate setback on Akkulka contract.
Oct 17	Corporate update	Positive	-6.5%	Rising production and non-binding LOI amid an adverse Akkulka court ruling.
Aug 18	Interim results	Positive	-26.6%	Stronger Q2 sales, higher profit and contract amendments for exploration blocks.

Pattern Detected

Recent history shows several positive operational and financial updates followed by negative price reactions, with only the latest two corporate updates aligning positively with news tone.

Recent Company History

This announcement continues a series of Kazakhstan-focused operational, financial, and corporate updates. In Q2 2025 and Q3 2025, Tethys reported higher oil and gas sales, profits of $1.3M and $1.4M, and growing production, yet shares fell after those releases. Subsequent October and November updates added production growth, legal rulings, and a higher CAD 1.75 per-share proposal from Fincraft. Today’s December 5 update emphasizes further oil and gas capacity increases plus a key application to move the Kul-Bas field into the Production Period.

Market Pulse Summary

The stock surged +23.1% in the session following this news. A strong positive reaction aligns with t...

Analysis

The stock surged +23.1% in the session following this news. A strong positive reaction aligns with the clearly constructive tone of this update, which highlighted oil output averaging 380 tons/day and plans to lift capacity to about 530 tons/day. Historically, several upbeat financial and operational releases saw selling pressure instead, so this 23.14% move contrasted with past divergences. Investors monitoring this pattern may weigh whether production growth and the Kul-Bas Production Period application can sustain interest without previous post-news pullbacks.

Key Terms

gas turbine, gas compressor, Central Processing Facility, Gas Processing Facility, +4 more

8 terms

gas turbine technical

"The second gas turbine has been successfully repaired and this is expected..."

A gas turbine is a machine that burns fuel to produce hot, fast-moving gases that spin a shaft or blades to generate electricity or drive industrial equipment, much like a jet engine uses expanding gases to create motion. Investors care because a turbine’s efficiency, fuel choice, operating costs, reliability and emissions profile directly affect a power producer’s revenue, maintenance spending and regulatory risk, so turbine performance influences cash flow and asset value.

gas compressor technical

"pre-commissioning of the second gas compressor is ongoing."

A gas compressor is a machine that squeezes natural gas or other gases to raise their pressure so the gas can move through pipelines, be stored, or be used in industrial processes — think of it like a pump that fills a bike tire or pushes water through pipes. For investors, compressors are key pieces of energy infrastructure: their efficiency, reliability, maintenance needs and regulatory compliance affect operating costs, production capacity and safety, which in turn influence profitability and capital spending.

Central Processing Facility technical

"Upgrading the oil processing and storage capacity of the Central Processing Facility..."

A central processing facility is the main site where raw inputs—such as crude oil, mined ore, harvested crops, or incoming materials—are turned into usable products or prepared for sale, storage, or transport. Think of it as a restaurant kitchen that cleans, cooks and packages ingredients; its efficiency, capacity, and safety directly affect production volumes, operating costs, regulatory compliance and therefore revenue and risk for investors.

Gas Processing Facility technical

"Construction of the Gas Processing Facility and Gas Pipeline (6" x 18 km) Project..."

A gas processing facility is an industrial plant that cleans and separates raw natural gas into saleable components—removing water, sulfur and carbon dioxide and extracting liquids such as propane and butane—so the gas meets pipeline and market specifications. For investors, these plants are like a packaging line that determines how much product is sellable, what mix of higher‑value liquids versus pipeline gas is produced, and they influence revenue, operating costs, throughput risk and regulatory or safety exposure.

workover technical

"Workover and Well Services operations are currently being performed..."

A workover is a targeted maintenance or repair operation on an oil or gas well to restore, improve, or change its production—like giving a car a tune-up or replacing parts so it runs better. Investors care because workovers can increase or prolong revenue by boosting output or recovering trapped reserves, but they also involve upfront costs and temporary downtime that affect short-term cash flow and the long-term value of the asset.

seismic interpretation technical

"Seismic interpretation for the Diyar block is in progress."

Seismic interpretation is the process of turning underground sound‑wave data into maps and models of subsurface rock layers and structures, similar to how an ultrasound creates an image of the body. For investors, it matters because these maps are used to judge whether oil, gas or mineral deposits are likely present, how big they might be, and how risky or expensive it will be to drill or mine, directly affecting a project's value and financing prospects.

Subsoil Code regulatory

"Under the Subsoil Code, such applications are subject to a statutory review..."

A subsoil code is a country’s legal framework that sets the rules for exploring, extracting and owning underground natural resources such as oil, gas, minerals and groundwater. Like a property deed combined with zoning rules for what lies under the ground, it determines who can operate, what permits and payments are required, and what environmental and closure duties apply — all of which directly affect project costs, legal risk and the value of resource investments.

non-binding letter of intent financial

"Non-Binding Letter of intent to acquire the Company update..."

A non-binding letter of intent is a preliminary document that outlines the main terms and expectations of a proposed transaction—such as a merger, acquisition, investment or partnership—without creating a legally enforceable obligation to complete the deal. Think of it as a written handshake or shopping list: it signals serious interest and sets the framework for negotiations and due diligence, which can move markets, but it does not guarantee the transaction will happen until a final, binding agreement is signed.

AI-generated analysis. Not financial advice.

Grand Cayman, Cayman Islands--(Newsfile Corp. - December 5, 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.

Operations update

Oil production is continuing from wells KBD-02, KBD-06, and KBD-07, with an average of about 380 tons per day over the last month. The second gas turbine has been successfully repaired and this is expected to increase the gas utilization capacity of daily oil production to about 480 tons per day as of today. Currently, pre-commissioning of the second gas compressor is ongoing. It's anticipated that daily oil production will increase to about 530 tons after the second compressor is put into operation within a week.

Upgrading the oil processing and storage capacity of the Central Processing Facility in the Kul-Bas Oil Field has been underway. It's scheduled to be commissioned by mid-January 2026.

Construction of the Gas Processing Facility and Gas Pipeline (6" x 18 km) Project has been currently at the design stage. The facilities are scheduled to be commissioned and put into operation by October 2026.

Natural Gas production from the Kyzyloi and Akkulka Gas Fields is averaging about 222,000 m³ per day from 21 gas wells. Workover and Well Services operations are currently being performed to reactivate several previously suspended gas wells.

Evaluation of the Aral-4 prospect is ongoing. The Company is also advancing permitting and preparatory work for exploration drilling at two priority sites. Seismic interpretation for the Diyar block is in progress. In addition, analysis of vintage 2D seismic data for the northern part of Diyar and the southern parts of the Zhanasu and Nurzhau blocks continues as part of the ongoing prospectivity assessment.

Regulatory Update

On November 27, 2025, the Company submitted an application to the Ministry of Energy of the Republic of Kazakhstan to transition Contract No. 1897 for the Kul-Bas field to the Production Period (Commercial License). Under the Subsoil Code, such applications are subject to a statutory review period of 20 working days. The duration of the review may vary, as the process is carried out solely by the Ministry of Energy. Following the Ministry's decision, the Company will proceed with the next steps required to prepare and finalize the corresponding Addendum to the Subsoil Use Contract. The Company will provide an update once official feedback becomes available.

Non-Binding Letter of intent to acquire the Company update

The Special Committee of independent Directors is continuing to communicate with the Fincraft Group LLP on their intent to acquire the Company. The Special Committee sent a letter to the Fincraft Group on November 26 and is waiting for their response.

About Tethys

Tethys is focused on oil and gas exploration and production activities in Central Asia.

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/277148

FAQ

What is Tethys Petroleum (TETHF) reporting for oil production on December 5, 2025?

Tethys reported oil production averaged about 380 tonnes/day last month, increasing to ~480 tonnes/day after a gas turbine repair and expected to reach ~530 tonnes/day within a week after the second compressor is commissioned.

When will Tethys commission the upgraded Central Processing Facility at Kul-Bas (TETHF)?

The company targets commissioning the Central Processing Facility upgrade by mid-January 2026.

What natural gas output did Tethys (TETHF) report from Kazakhstan on December 5, 2025?

Natural gas production averaged about 222,000 m3/day from 21 gas wells.

What is the timeline for Tethys's Gas Processing Facility and pipeline (TETHF)?

Design is underway and the Gas Processing Facility with a 6" x 18 km pipeline is targeted to be operational by October 2026.

Has Tethys (TETHF) applied to move Kul-Bas to commercial production?

Yes; the company submitted an application on November 27, 2025 to transition Contract No. 1897 to the Production Period; the statutory review is 20 working days but timing may vary.

Is there an acquisition offer for Tethys (TETHF)?

The Special Committee continues discussions with Fincraft Group on a non-binding letter of intent and is awaiting a response.