MUSCAT, MAY 7
Tethys Oil, a Swedish energy firm, has finalised its Field Development Plan (FDP) for Block 56 in Oman, paving the way for commercial production opportunities.
The Block 56 FDP is one of several highlights of Tethys Oil's Q1 performance, positioning the company for continued growth in the oil and gas sector. Additionally, preparations for the Kunooz-1 exploration well in Fahd, Block 58, have been completed, with drilling scheduled to begin in mid-June. The identification of six prospects in South Lahan on Block 58 has further demonstrated Tethys Oil's focus on exploration and resource development.
Magnus Nordin, the Managing Director of Tethys Oil, emphasised the importance of these achievements by stating, "We’re approaching several important milestones in our portfolio. Block 56 has taken large steps towards commerciality with the successful results from the Menna-1 well drilled earlier this year..." This reflects the company's strategic focus on driving commercial production and maximising the potential of its exploration assets.
Furthermore, strategic initiatives such as entering the second exploration phase on Block 49 and conducting a strategic review with advisors from Jefferies Financial Group Inc showcased Tethys Oil's commitment to portfolio optimisation and growth opportunities. The signing of a Heads of Agreement with Sonatrach in Algeria highlighted the company's expansion plans into new markets.
From a financial perspective, Tethys Oil reported revenue and other income of $30.1 million, with a strong EBITDA of $13.0 million in the first quarter. Despite investments in oil and gas properties amounting to $17.0 million, the company maintained a positive cash flow from operations and emphasized its long-term growth potential.
In the face of challenges in Blocks 3&4, Tethys Oil acknowledged the need to high-grade opportunities and allocate resources effectively. Nordin mentioned, "Our guidance for 2024 included lower production and less free cash flow than previous years from Blocks 3&4... Tethys is in a position to high-grade the now multiple opportunities available to us and put greater emphasis on how we allocate our resources." This signifies the company's proactive approach towards addressing operational challenges and capitalizing on emerging opportunities.
Tethys Oil's operational performance and strategic advancements in Q1 2024 underscored its commitment to sustainable growth, operational excellence, and value creation in the oil and gas sector. Through a balanced approach to production and exploration activities, the company continues to position itself as a key player in the industry, driving innovation and efficiency in its operations.
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