Tethys Petroleum Announces Interim Results and Corporate Update

Core Viewpoint - Tethys Petroleum Limited reported significant growth in oil and gas sales for Q1 2025, but faced challenges related to production logistics and gas treatment capacity, impacting overall profitability and production rates [2][3][4]. Financial Performance - Oil and gas sales increased by 104% to $4.0 million in Q1 2025 from $1.9 million in Q1 2024, primarily due to increased oil production [2]. - The net profit for the period was $0.3 million compared to a loss of $1 million in the same period in 2024 [2]. Production Challenges - Despite improved revenues, production levels were disappointing relative to management expectations due to logistical limitations and regulatory constraints [3]. - Tethys received a production license in November 2024 after a shutdown period, but is currently limited to 485 tons/day under the license [3]. - The elimination of naptha exports has negatively affected the profitability of mini-refineries, impacting Tethys's pricing and logistics [3]. Gas Production Issues - The gas-to-oil ratio (GOR) has increased, leading to reduced production rates to about 250 tons/day to avoid flaring excess gas [4]. - Tethys lacks the facilities to treat the increased gas production, which has affected cash flow and capital expense funding [4]. Exploration Activities - Tethys, through its DMS subsidiary, is acquiring seismic data on two exploration blocks, with the goal of drilling by the end of 2026 if favorable prospects are identified [5]. - The seismic acquisition on the Aral 4 block has been completed, and work has commenced on the Diyar block [5]. Company Overview - Tethys is focused on oil and gas exploration and production in Central Asia and the Caspian Region, believing in significant potential in both exploration and discovered deposits [6].