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Tethys Petroleum’s (LON:TPL TSE:TPL) revenues rose sharply in its latest quarter as the ramp-up in production from the Doris field in Kazakhstan gathered momentum.
Oil and gas revenues rose by 46% to US$10 mln in the three months to September as average production increased by almost three-quarters to 2,732 barrels per day.
Tethys added that the momentum had continued into the current quarter with October and November’s figures the best in Kazakhstan to date for the company.
In October, output averaged 3,700 bopd while November is set to be even better.
"These figures demonstrate the optimisation of the trucking operation in Kazakhstan is coming to fruition which has been the main restriction on maximum production to date, not the production capability of the wells," said the company.
Tethys said it cut administrative costs by 8% to US$4.5 mln in the September quarter compared to a year ago, but expects more cost savings as the full benefits of a recent review of its cost base start to come through.
Revenues for the September quarter were US$10 mln against US$6.85 mln a year earlier, while net losses fell to US$5.1 mln from US$8.6 mln.
Revenues for the first nine months of 2012 rose by 72% to US$26.7 mln, with average production 145% better at 2,234 bopd.
Net losses for the year so far amount to US$16.8 mln against US$17.6 mln.
City broker Seymour Pierce this morning restated its buy advice and 72 pence a share price target.
Analyst Sam Wahab said: Today’s numbers illustrate Tethys’ continued progress in Kazakhstan on both a financial and operational level.
“With near term news flow expected in regards to the much anticipated farm-out negotiations of their 27.5 billion barrel recoverable Bokhtar field in Tajikistan, we see the shares representing compelling value at the current price.”
At midday, the shares up 0.5 pence, or 2% at 27.5 pence.
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