First quarter 2017
· Production amounted to 12,495 bopd, compared to 12,268 bopd in the fourth quarter 2016
· Revenue of MUSD 29.3, compared to MUSD 20.7 in the fourth quarter 2016
· EBITDA of MUSD 19.3, compared to MUSD 9.6 in the fourth quarter 2016
· Net result of MUSD 6.7, compared to MUSD 1.5 in the fourth quarter 2016
· Earnings per share amounted to USD 0.19 during first quarter 2017
· 14 new wells completed on Blocks 3&4 during the first quarter 2017
· Two previously undrilled fault blocks on Farha South and one previously undrilled structure on Shahd were successfully drilled and found to be oil bearing
· Exploration well Erfan-1 flows oil to surface
· Drilling success increases production capacity
| MUSD (unless specifically stated) | First quarter 2017 | Fourth quarter 2016 | First quarter 2016 | Full year 2016 | |
| Net daily production before government take (bbl) | 12,495 | 12,268 | 12,212 | 12,235 | |
| Net barrels sold, after government take (bbl) | 564,700 | 583,772 | 531,918 | 2,357,701 | |
| Average selling price per barrel, USD | 50.7 | 46.0 | 35.7 | 40.5 | |
| Revenue | 29.3 | 20.7 | 19.7 | 87.1 | |
| EBITDA | 19.3 | 9.6 | 10.3 | 44.0 | |
| Operating result | 9.3 | -1.7 | -1.4 | -0.5 | |
| Result for the period | 6.7 | 1.5 | -2.3 | 2.7 | |
| Net cash | 40.1 | 39.0 | 45.4 | 39.0 | |
| Investments in oil and gas properties | 13.0 | 15.0 | 15.0 | 48.5 | |
| Earnings per share (after dilution), USD | 0.19 | 0.04 | -0.07 | 0.08 |
Letter to shareholders
Dear Friends and Investors,
Tethys Oil has had a strong and constructive quarter, with basically all numbers as well as the drill bit going our way. Oil prices and production are increasing, resulting in higher revenues. At the same time, costs are coming down, resulting in improved bottom line result.
New oil discoveries
Drilling activity has been high, particularly on the exploration side, and we are happy to note that the drilling success rate on Blocks 3&4 remains very high. The two new, previously undrilled, fault blocks on the Farha South field drilled during the quarter came in successfully. Likewise did the new, also previously undrilled, structure on the Shahd field. And maybe even more significantly, so did the exploration well Erfan-1. Erfan-1 was drilled on a previously undrilled structure south west of the producing Saiwan East field and flowed oil to surface from the Khufai carbonate formation. The result is encouraging and we believe Erfan will contribute positively to our future production capacity.
Oil production increases
We reached a new record production of 12,495 bopd, of which 12,386 bopd from our Omani blocks, representing a two percent increase compared to the fourth quarter 2016. Since Oman has agreed to support the OPEC initiated production limitations Tethys has been given a monthly production target corresponding to 12,300 bopd for the first six months of 2017. First quarter production was slightly above this target and we are confident that we shall be able to at least meet the target also for the second quarter. Following our recent drilling success, we are also confident that we will able to increase our production as soon as the production limitations are removed.