Financial update fourth quarter 2015


Tethys Oil’s revenue amounted during the fourth quarter 2015 to MSEK
222. Tethys Oil’s share of the production, before government take, from
Blocks 3 and 4 onshore the Sultanate of Oman amounted in the fourth
quarter to 997,904 barrels. The average achieved oil price during the
quarter was USD 47.9 per barrel. All oil sales relate to Blocks 3 and 4
in Oman, where Tethys Oil holds 30 per cent of the licence.


As per the fourth quarter 2015, Tethys Oil has changed its accounting
principles with regard to valuation of underlift and allocation and
presentation of over- and underlift. The purpose of the change is to
better align Revenue with the production development, have a more
understandable Operating expenses category and thereby increase
transparency and investors’ understanding of the company. Both over- and
underlift will, starting from the fourth quarter 2015, be valued at
market value, whereas the previous accounting principles valued overlift
to market price and underlift at cost. Both over- and underlift will be
presented within Revenue instead of within Operating expense as was the
previous accounting principle. As per the new accounting principles
Revenue will be aligned and follow the production performance during the
reporting period. There will be no changes to effects on operating
result or net result with regard to overlift. The change in valuation
will for individual quarters have an impact in case of underlift
following the change in valuation to market value. The change in
accounting principles will however over time have no impact. Historic
financial data has been recalculated in line with the new accounting
principles.

 

| Tethys Oil’s share Blocks 3 and 4 | Net sales (MSEK) | Over-/underlift
adjustment (MSEK) | Revenue (MSEK) | Average oil price (USD/bbl) | Net sales
(bbl)* | Over-/underlift (bbl)*** | Production (bbl)** | 
| Q4 2015 | 151 | 70 | 222 | 47.9 | 366,746 | 22,725 | 997,904 |
| Q3 2015 | 307 | -52 | 255 | 61.8 | 584,399 | -129,439 | 918,474 |
| Q2 2015 | 265 | -42 | 223 | 57.8 | 545,019 | -22,647 | 848,939 |
| Q1 2015 | 163 | 41 | 205 | 63.8 | 308,892 | 80,924 | 774,315 |
| Q4 2014 | 310 | -29 | 281 | 97.1 | 434,035 | -12,828 | 757,730 |
| Full year 2015 | 886 | 18 | 905 | 58.1 | 1,805,056 | 22,725 | 3,539,631 |
| Full year 2014 | 1,046 | -19 | 1,027 | 103.9 | 1,464,228 | -12,828 |
2,765,654 | 

 

* After government take

** Before government take

*** Volumes sold has not always correspond to Tethys Oil’s share of
production after government take during a period. The difference is
called over-/underlift. The over-/underlift position is stated as per
the end of each quarter. Overlift is stated as a negative number.

 

Tethys also has some production from Lithuania. The result from the
Lithuanian production is reported in the Group’s income statement as net
profit/loss from associates.

 

The report for the fourth quarter 2015 will be disclosed on 9 February
2016.

 

For further information, please contact

Magnus Nordin, managing director, phone +46 8 505 947 00

Morgan Sadarangani, CFO, phone +46 8 505 947 01

 

The information in this press release has been made public by the
Company in accordance with the Securities Market Act and/or the
Financial Instruments Trading Act.

 

Tethys Oil AB (publ)

Tethys Oil is a Swedish energy company focused on exploration and
production of oil. Tethys Oil’s core area is the Sultanate of Oman,
where the company is one of the largest onshore oil concession holders
with a current net production in excess of 11,000 barrels of oil per
day. Tethys Oil also has exploration and production assets onshore
Lithuania and France. The shares are listed on Nasdaq Stockholm (TETY).

Website: www.tethysoil.com

About Tethys Oil

Tethys Oil is a Swedish oil company with focus on onshore areas with known oil discoveries. Tethys Oil's core area is Oman, where the company holds 2P Reserves of 25 mmbo and 2C Contingent Resources of 13 mmbo and had an average oil production of 11,767 barrels per day from Blocks 3&4 during 2018. Tethys Oil also has onshore exploration licences in Lithuania and France and some production in Lithuania. The shares are listed on Nasdaq Stockholm (TETY).