MUSCAT, AUG 8
Tethys Oil, a Swedish oil and gas exploration company, has released its second quarter 2023 results, showcasing not only the positive outcomes of the extended well test on the Al Jumd discovery in Block 56 in Oman but also its strong financial performance during the period.
The extended well test on the Al Jumd discovery in Block 56 remained active throughout the quarter, yielding favorable results for Tethys Oil. A total of 34,699 barrels gross was produced, indicating significant oil reserves in the area and providing an optimistic outlook for the block's future development.
Magnus Nordin, Managing Director of Tethys Oil, said “The results of the extended well test on the Al Jumd discovery and very encouraging interpretations from the new 3D seismic study covering the wider Al Jumd trend suggests that this area of Block 56 holds promising commercial potential. The next steps in evaluating and eventually realising this potential includes requesting an extension of the second exploration phase to allow for additional appraisal and exploration drilling to be carried out and a provisional field development plan to be prepared.”
In Block 58, the work during Q2 work was centred on firming up the prospectivity of the South Lahan prospects, which are currently being peer reviewed. The three Fahd prospect, with close to 200 mmbo of unrisked prospective resources remains the main target in the Block but South Lahan has proven to be interesting. “Tendering for a drilling rig is in progress and we are also investigating the appetite for potential partners to join the exploration effort on Block 58,” Nordin added.
In terms of financial performance, Tethys Oil reported revenue and other income of $34.7 million during Q2. This figure demonstrates the company's ability to generate significant revenue from its operations in Oman. Furthermore, Tethys Oil achieved an EBITDA of $16.9 million, highlighting its strong operational efficiency and profitability.
Cash flow from operations amounted to $25.7 million, underscoring the company's robust financial position and its ability to generate substantial cash inflows from its core activities. This healthy cash flow allows Tethys Oil to reinvest in its operations and pursue further growth opportunities.
During the Q2, the company made investments of $21.4 million in oil and gas properties. These investments reflect the company's commitment to expanding its asset base and developing its exploration and production capabilities in Oman. By allocating resources to strategic investments, Tethys Oil aims to maximize the long-term value of its operations.
Despite its investments, Tethys Oil maintained a positive free cash flow of $4.0 million during the quarter. This signifies the company's ability to generate excess cash after meeting its operational and capital expenditure requirements. A positive free cash flow provides Tethys Oil with financial flexibility, enabling it to pursue growth opportunities, reduce debt, or return value to its shareholders.
Tethys Oil remains focused on its exploration and development activities in Oman. The positive results from the extended well test on the Al Jumd discovery in Block 56 provide a solid foundation for future development. Additionally, the company's ongoing exploration efforts in Block 58, including the South Lahan prospect and potential farmout agreement, demonstrate Tethys Oil's commitment to expanding its presence in the region and unlocking further value.
Tethys Oil holds interests in Oman’s Block 3&4, Block 49, Block 56 and Block 58.
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