Tethys Oil announces Financial Guidance for 2022

Tethys Oil is pleased to announce the company’s financial guidance for 2022:

  • Production: annual average in the range of 11,000 – 11,500 bopd
  • Investments: MUSD 91
  • Operating expenditures: USD 12 (+/- 0.5) per barrel

Tethys Oil expects full year 2022 average production to be in the range of 11,000-11,500 barrels of oil per day with the outcome dependent upon the performance and timing of the wells to be drilled in the 2022 work programme. Under current circumstances, the OPEC+ production quotas are not expected to limit production output. Monthly fluctuations outside of the yearly average production range is to be expected.

Tethys Oil’s investments in oil and gas properties for 2022 is expected to amount to MUSD 91. The majority of oil and gas investments relating to the Blocks operated by Tethys Oil are expected to be incurred in the first half of 2022 with resulting cash flow impact. The 2022 investments in oil and gas properties are expected to be funded by the Group’s cash flows as well as cash on hand.

Investments on Blocks 3&4 are expected to be MUSD 62. The expenditures are due to the full year operation of three drilling rigs, upgrade and expansion of production facilities, field infrastructure improvements and 3D seismic acquisition.

2022 spending on Block 49 is expected to be MUSD 0.5 with expenditure focusing on a feasibility study of the application of unconventional completion and production techniques on the Thameen-1 well.

On Block 56, Tethys Oil’s 2022 investments, including carry arrangements, is expected to amount to a total of MUSD 20. The expenditure includes the drilling of the three wells in the Al Jumd area, subsequent well testing and the 3D seismic survey on the central area of the Block.

On Block 58 Tethys Oil’s 2022 investments are expected to amount to MUSD 8.5 to cover the expense related to seismic processing and the drilling of one exploration well.

Operating expenditures
Tethys Oil expects 2022 operating expenditures to be USD 12 per barrel (+/- 0.5 per barrel). The anticipated operating expenditure is a result of multiple factors including (but not limited to) underlying wage inflation, increased fuel prices and third-party costs as a result of higher activity levels.