News Column

Tethys Petroleum Limited: First Quarter 2014 Financial Results

May 15, 2014

GRAND CAYMAN, CAYMAN ISLANDS--(Marketwired - May 15, 2014) - Tethys Petroleum Limited ("Tethys" or the "Company") (TSX:TPL) (LSE:TPL) today announced its First Quarter 2014 Financial Results.

Corporate Highlights

-- Drilling of a further 3 successful shallow gas exploration wells: AKK17, AKK18 and AKK19. These wells have a predicted test capacity of over 20 million cubic feet (570,000 cubic metres) of gas per day based on nearby similar well results. Further shallow well drilling is planned as well as tie in of these and other wells to increase production of natural gas -- Independent report commissioned on the "Klymene" prospect in Kazakhstan estimated Unrisked Mean Recoverable Oil Resources at over 400 million barrels. The Klymene exploration well is planned for later this year following successful completion of the recently announced SinoHan acquistion -- Completion of the acquisition of a 56% interest in Blocks XIA, XIM and XIN, in eastern Georgia; areas which the Company believes have good potential for both unconventional and conventional oil, with independent estimates giving some 1.8 billion barrels oil equivalent of Unrisked Mean Recoverable Resources to Tethys' interest -- Selection of seismic contractor for the next phase of the geophysical acquisition on the Bokhtar PSC in Tajikistan by the joint Tethys/TOTAL/CNPC joint operating company BOC -- Successful capital raise of USD15 million completed in May, 2014

Financial Highlights

-- Loss for the period from continuing operations reduced 6% year-on-year to USD 4.4 million (Q1 2013: USD4.7 million) -- Basic & diluted loss per share of USD0.01 cent from continuing operations (Q1 2013: USD0.02 cents) -- Capital Expenditure of USD7.3 million (Q1 2013: USD1.3 million) -- Cash and cash equivalents at the end of Q1 2014 of USD13.7 million (Q1 2013: USD1.4 million) -- Oil and gas revenue from continuing operations of USD6.8 million - a decrease of 35% on the comparative period (Q1 2013: USD10.5 million) primarily due to trucking issues related to weather and issues with downhole pumps (now largely resolved)

The full Quarterly Results together with Management's Discussion and Analysis have been filed with the Canadian securities regulatory authorities. Copies of the filed documents may be obtained via SEDAR at or on Tethys' website at The summary financial statements are attached to this press release.

The Company's First Quarter 2014 financial statements are prepared under International Financial Reporting Standards ("IFRS").

The above highlights along with other 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 9:00AM EDT (2:00PM BST) on Friday, May 16, 2014. The North American conference call number is 800-299-8538 and the outside North America conference call number is +1-617-786-2902. The conference call code to use is 55303387. Please call in about 10 minutes before the starting time in order to be patched into the call.


The call is being webcast and can be accessed at:

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

Tethys Petroluem Limited Condensed Consolidated Statement of Financial Position (unaudited) (in thousands of US dollars) As at ----------------------------- March 31, December 31, 2014 2013 Non-current assets Deferred tax 317 322 Intangible assets 42,457 31,074 Property, plant and equipment 15,088 15,291 Restricted cash 666 660 Investment in joint arrangements 4 4 58,532 47,351 Current assets Trade and other receivables 1,369 1,358 Advances - 4,000 Cash and cash equivalents 13,698 25,109 Restricted cash 489 475 Assets of a disposal group classified as held for sale 158,793 156,325 174,349 187,267 Total assets 232,881 234,618 Equity Share capital 29,956 28,756 Share premium 311,797 307,295 Other reserves 42,740 42,621 Accumulated deficit (187,382) (182,533) Non-controlling interest 6,402 6,454 Total equity 203,513 202,593 Non-current liabilities Financial liabilities - borrowings 5,744 - 5,744 - Current liabilities Financial liabilities - borrowings 971 4,965 Derivative financial instruments - warrants 36 17 Current taxation 7 144 Trade and other payables 3,609 4,946 Provisions 377 520 Liabilities of a disposal group classified as held for sale 18,624 21,433 23,624 32,025 Total liabilities 29,368 32,025 Total equity and liabilities 232,881 234,618 Tethys Petroleum Limited Condensed Consolidated Statement of Comprehensive Income (unaudited) (in thousands of US dollars) Three months ended March 31, ------------------------------- 2013 2014 Restated Sales and other revenues 6,781 10,474 Sales expenses (744) (644) Production expenses (3,798) (3,360) Depreciation, depletion and amortization (151) (4,383) Business development expenses (740) (368) Administrative expenses (5,126) (4,490) Transaction costs of assets held for sale (15) - Share based payments (119) (331) Foreign exchange gain/(loss) - net 7 131 Fair value loss on derivative financial instrument - net (19) (430) (Loss)/profit from jointly controlled entity (1,203) 257 Finance costs - net (603) (685) Loss before taxation from continuing operations (5,730) (3,829) Taxation 1,321 (854) Loss for the period from continuing operations (4,409) (4,683) (Loss)/profit for the period from discontinued operations net of tax (492) 356 Loss and total comprehensive income for the period (4,901) (4,327) Loss and total comprehensive income attributable to:Shareholders (4,849) (4,229) Non-controlling interest (52) (98) Loss and total comprehensive income for the year (4,901) (4,327) Loss per share attributable to shareholders: Basic and diluted - from continuing operations (0.01) (0.02) Basic and diluted - from discontinued operations - - Tethys Petroleum Limited Condensed Consolidated Statement of Cash Flows (unaudited) (tabular amounts in thousands of US dollars) Three months ended March 31, ------------------------------- 2014 2013 Cash flow from operating activities Loss before taxation from continuing operations (5,730) (3,829) (Loss)/profit before tax from discontinued operations (492) 469 Adjustments for Share based payments 119 331 Net finance cost 603 682 Depreciation, depletion and amortization 151 4,979 Fair value gain on derivative financial instruments 19 430 Net unrealised foreign exchange (gain)/loss 11 (48) (Loss)/profit from jointly controlled entity 1,203 (257) Movement in deferred revenue - (1,614) Movement in provisions (142) - Net change in working capital 91 1,419 Cash (used in)/generated from operating activities (4,167) 2,562 Corporation tax paid (138) - Net cash (used in)/generated from operating activities (4,305) 2,562 Cash flow from investing activities Interest received 50 50 Expenditure on exploration and evaluation assets (3,217) (234) Expenditures on property, plant and equipment (4,049) (1,030) Movement in restricted cash - (18) Movement in advances to construction contractors 953 42 Movement in value added tax receivable (269) 884 Net change in working capital 258 (945) Net cash used in investing activities (6,274) (1,251) Cash flow from financing activities Proceeds from issuance of borrowings, net of issue costs 6,707 737 Repayment of borrowings (6,030) (1,862) Interest paid on borrowings (484) (561) Proceeds from issuance of equity - 48 Share issue costs (48) - Movement in other non-current liabilities (71) (71) Net cash generated from/(used in) financing activities 74 (1,709) Effects of exchange rate changes on cash and cash equivalents 99 6 Net decrease in cash and cash equivalents (10,406) (392) Cash and cash equivalents at beginning of the period 25,731 1,750 Cash and cash equivalents at end of the period 15,325 1,358 Cash and cash equivalents at end of the period comprises: Cash in assets of a disposal group held for sale 1,627 - Cash and cash equivalents 13,698 1,358 15,325 1,358 FOR FURTHER INFORMATION PLEASE CONTACT: Tethys Petroleum LimitedSabin Rossi Vice President Investor Relations srossi@tethyspetroleum.comTethys Petroleum Limitedinfo@tethyspetroleum.comhttp://www.tethyspetroleum.com Media / IR Enquiries London FTI Consulting Ben Brewerton/Adam Cubbage/James Styles +44 203 727 1000 Asia Pacific Quam IR Anita Wan +852 2217 2999 Source: Tethys Petroleum Limited

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Source: Marketwire (Canada)

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