40
CORPORATE UPDATE March 2015
CORPORATE UPDATEMarch 2015
Contents
Tethys Petroleum Overview• Vision, Strategy, Investment, Achievement & Value• Reserves, Production & Resources – All time high & organic growth
Tethys Kazakhstan• HanHong Farm Out – Transformational Deal • Gas Growth Story – Akkulka & Kyzyloi• Oil – Production and Exploration potential (Akkulka, Kul-Bas – Klymene Prospect)
Tethys Tajikistan – Jewel in Tethys Crown• (Exceptional Resources, world class basin, global partnership)
Tethys Georgia
Tethys Investment for the future – SinoHan Deal Funds Utilization/Capex plans.
DisclaimerAppendix
2
Tethys Petroleum Overview
3
““Tethys Vision and Strategy
Tethys Petroleum's Vision is to become the leading Independent E&P
Company in Central Asia, by exercising capital discipline, by generating cash flow from existing discoveries and by maturing large exploration prospects within our highly-attractive frontier acreage.
Our Strategy is to • Be recognised as an ethically-responsible, transparent company, delivering safe, reliable,
operations through a culture of safety & performance related delivery.• Focus on cost structures and capital efficiency - Actively manage our portfolio by farming
down / reducing our capital commitment whilst retaining materiality• Increase production, revenue and cash flow from existing discovered reserves and monetize
low risk gas and oil prospects• Explore for ‘elephant’ prospects with ‘company making’ potential within existing acreage• Ultimately look to supply the growing energy demand of China• Combine international technical and management expertise with a strong local team
New Executive Chairman, John Bell, on behalf of the Board of Directors of Tethys Petroleum Limited.
4
Investment case
New Board with focus on a performance-based culture and shareholder value
Current production capacity 5,000 boepd, (60% gas, 40% oil) with funded plans to grow this in 2015.
2P reserves of 27.08 MM boe, recoverable prospective resources of 10 billion boe*
Supermajor partners in world class basins
Intense focus on further G&A reductions in 2015
Near term value enhancing triggers
China gas pipeline to drive demand and pricing further
$75 MM capital injection from SinoHan or KazMuniaGaz farm-out
Extensive development and exploration work programme
Kazakhstan:
Drill shallow gas production and exploration wells
3D Seismic program
Klymene oil exploration well
Tajikistan:
Seismic program
* Unrisked Mean Prospective Resources as audited by GustavsonAssociates as at April 2012. See “Basis of Presentation of
Prospective Recoverable Resources” on page 325
New Team – First 100 days….
Corporate• Re-balance of Board/ Executive Chairman
• G&A and BD forecast reduction to $10.5 MM (from $20.6 MM) by end 2015*
• US$6 MM loan completed
• Head count reduction of 21% since October 2014
Kazakhstan• New infrastructure, on time/budget, zero LTI’s
• Doubled gas production Q1 2015 (520 MCM/day)
• 2015 gas sales contract, 42% increase in pricing
• Extension Akkulka Exploration Contract - 4-years
• Extension Kyzyloi Gas Production Contract – 15-years
• Production Expense reduced: $13.5MM$11.2MM (17%)**
Tajikistan• Decreased G&A for JV
• Reduced 2015 commitment from $24MM c.$15MM
• Farm Out process commenced
Georgia• Restructured Georgian project/commenced farm-out process
$10.5MM*
$6MM
Corporate G&A* forecastreduction to
loan financing completed
*On annualized basis Inc. BD**Expected annualized basis.
See “Forward Looking Statements”. All $ figures are USD6
Tethys G&A*
2014 Estimated 2015 Target*
$20.6MMTotal $10.5MMTotal
(annualised basis)
*Inc. BD. Based on annualized basis. See “Forward Looking Statements”. 7
TPL Share Price (Net Asset Value)
• Share of GBP 0.40/share based on Net Asset Value of $212.25 MM• Current share price: GBP 0.09/share (USD/GBP: 1.58)• Does not include value for Klymene exploration well or Tajikistan exploration well
0.40
0.00
0.10
0.20
0.30
0.40
0.50
0.60
Cash End Jan2015
MV Kazakhstan MV Tajikistan Georgiahistorical Costs
MV Rigs less: loans &advances
less: G&A Total Core NAV
GBP
/Sha
re
TPL: Net Asset Value
Current TPL Share Price
Company calculations. Please see appendix for assumptions underlying calculations of Market Value (MV) and Total Core NAV 8
Tethys Assets/Strategic Partnerships
Kazakhstan• Oil and Gas Production
• Sale of 50% to SinoHan (HanHong SPV - Beijing private equity) for $75 MM
• Completion subject to receipt of final government consents
• 27.08 MM BOE 2P Reserves*, 1.3 Billion bbls Prospective Resources** (gross pre-sale of 50%)
• Growing gas production – mid-term goal to supply to China at higher prices• Integrating HSSE in the business and the company culture
• Exciting oil exploration – Klymene 422 MM bbls prospective resources** drill ready
Tajikistan• High impact exploration in world class basin
• 113.9 tcf (3.22 tcm) prospective resources** of natural gas (32.3 tcf net to Tethys)• 8.5 billion barrels of oil/condensate (2.4 billion barrels net to Tethys)
• CNPC and Total partners, Joint Operating Company
• Total and CNPC, 33% each; Tethys net interest 28.33% (local partners 5%)
Georgia • 3.2 billion boe prospective resources** (1.58 billion** net to Tethys)
• Tethys reduced funding obligation and equity reduced to 49% (from 56%)
• Farm out plan commenced
*Proven and Probable reserves as audited by Gustavson (as at 31/12/14)** Gross Unrisked Mean Prospective Resources as audited by Gustavson Associates. See “Basis
of Presentation of Prospective Recoverable Resources” on page 329
Gross Reserves at December 31st 2014 (NI 51-101)
Reserves Category
Oil &Condensate
(MMbbl)
Gas (Bcf) BOE(MMboe)
BOE NPV 10% After Tax
($MM)
Total Proved 6.56 60.36 16.62 $108.32
Total Proved + Probable
12.36 88.29 27.08 $185.86
Total Proved + Probable + Possible
20.55 124.56 41.31 $287.13
The figures are prepared by Gustavson Associates in accordance with the NI 51-101 standard and are for Kazakhstan only. All figures are Gross to Tethys with the numbers being pre-SinoHan transaction completing, Gross implying before the application of Kazakhstan Mineral Extraction Tax (MET).
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Gross Production & Reserves
• 1P Proved reserves up 17% 16.62 MM boe
• Highest volume in Tethys history.
• 40% of total reserves
• 2P Proved + Probable up 6% 27.08 MM boe
• 3P Proved + Possible + Probable up 2% 41.31 MM boe
• Increase of 1.71 MM boe in 2P reserves after 2014 gross production of 1.52 MMboe
0
10
20
30
40
50
2007 2008 2009 2010 2011 2012 2013 2014
MM
boe
Year
Possible
Probable
Proven
CumulativeProduction
TPL Gross Production & NI 51-101 Reserves - Kazakhstan Business Unit - MM boe
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Resources
The resources numbers are evaluated in accordance with NI 51-101 standard. See “basis of preparation of prospective recoverable resources and possible reserves”. All figures are net to Tethys with Kazakhstan figures being pre-SinoHan transaction completing.
Unrisked MeanProspective Recoverable Resources
Oil &Condensate
(MMbbl)
Gas (Bcf) BOE (MMboe)
Kazakhstan(as of April 2012 – pre SinoHantransaction)
1,230 634 1,336
Tajikistan(as of June 2012)
2,411 32,272 7,790
Georgia(as of July 2013)
1,427 889 1,576
Total 5,068 33,795 10,702
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Kazakhstan
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Kazakhstan North Ustyurt Assets
BOZOI-BEYNEU-SHYMKENT PIPELINE TOWARDS CHINA*
*Dotted line indicates pipeline under construction14
Han Hong Farm-out – Transformational Deal
Closure key priority of new management team
Key Terms• TPL currently 100% owners
• US$75 MM for 50% to SinoHan
• First US$9million Work Program (WP) carry for TPL
• SinoHan released US$3.88 MM deposit for WP
• Extended contract to 1st May 2015• Tethys remains as operator – joint board control
Conditions Precedent• Article 36 pre-emption waiver Currently waiting KazMunaiGaz decision (state appointed company), expected Q1 2015
• Antimonopoly Agency Application Submitted and in process
• National Bank of Kazakhstan (NBK) permissions Listing of Tethys Kazakhstan SA (transaction entity) on Kazakhstan Stock Exchange required – documents being
finalized for submission.
$75MM
Base Consideration
$3.88Released
MMDeposit
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Gas Growth Story - Development
Kyzyloi and Akkulka gas fields• Phase 1 Q4 2014 260 mcm/day
• Phase 2 delivered Q1 2015
• 520 mcm/day (18.3 mmcf/day, 3,060 boe/day)
• Completed pipeline and dehydrator infrastructure on time
with zero LTI’s,
• AKK 15,16,17,18 & 19 currently on production
• Phase 3 on schedule – Q2/3 2015
• Put AKK14 and AKK05 on and add compressors to reach 570 mcm/day
• Objective to maintain production throughout 2016 of c.560M mcm/day (natural 25% decline to be offset by more wells & compression)
Gas sales• Increased gas price to USD75/mcm* ($2.12/mcf) from January 2015 (by 42%)
• Contract flexible should China gas sales commence in 2015
• Forecast materially higher prices upon commencement of gas sales to China
*Contract denominated in Tenge fixed at year-end 201416
The Gas Growth Story - Kyzyloi
Kyzyloi Gas Field
• Contract recently extended to 31st December 2029
• KYZ110, KYZ112 production wells planned
• Prospect E nearby
• Bright spots on seismic (2D)
• High chance of success forecasted
Kyz-110
Kyz-112
Kyz Pros E
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The Gas Growth Story - Akkulka
Exp = Exploration prospects (most potential identified)
Field = Development fields (drill ready)
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The Gas Growth Story – Track record of exploration success
Akkulka Gas
• Very good exploration track record
• 15 out of 20 success’s, the last 13 consecutively
• Circa 20 new prospects & leads identified
• 4 drill ready in Akkulka field area
• Bright spots on seismic
• High chance of success forecasted
• 3D seismic program planned 2015 in AKK Exp D,E,F
• Kyzyloi and Akkulka Proven + Probable 85.2 Bcf*(14.2 million boe)
• Significant increase in well discovery following 2007 TPL modern seismic methodology
* Gustavson Associates December 31st, 2014
No drilling pending higher gas price
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Oil Production
Oil productionDoris oil field
• Exploration success, first commercial oil discovery in area
• Cretaceous Sandstone and Jurassic Carbonate
• Doris sand at around 2,200 metres
• Current production capability ~2,000 bopd
• Light (46 API°), sweet crude oil
Dione oil field
• Jurassic Sandstone at around 2,500 metres
Oil sales• Currently domestic sales only
• Current pricing <$15/barrel net at field
• Recent opex optimisation ensures still profitable
• Q1 sales restricted by seasonal weather
• Continue to produce but no more CAPEX until prices recover
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Akkulka / Kul-Bas Area Deeper Oil and Gas Exploration
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Gross Unrisked Mean Prospective Resources (Gustavson)• Up to 422 MM barrels oil (106 MM barrels risked)*
Defined on newly shot seismic• Good four way dip closure• Upper Aptian P50 130 MM barrels• Mid Aptian 213 MM barrels• Jurassic 78 MM barrels
Potential at several levels• Well TD up to 2750m – Forecast cost of $7.3MM• Cretaceous sands (multiple)• Jurassic carbonate & Jurassic sands
Klymene Prospect – Planned drilling 2015
422Up to MMBarrels oil
*.See “Basis of Presentation of Prospective Recoverable Resources” on page 32 22
Tajikistan
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Amu Darya – World Class Basin
All figures depicted in the map above are the resource estimate sourced from Gaffney, Cline and Associates or the report entitled "Petroleum Geology and Resources of the Amu-Darya Basin, Turkmenistan, Uzbekistan, Afghanistan and Iran, US Geological Survey" dated 2004.
S YOLOTAN21.2 Tcm (749 Tcf)*
YASHLAR 5.5 Tcm (176 Tcf)*
DAULETABAD1.7 Tcm (60 Tcf)
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Tajikistan: the “Jewel in the Tethys Crown”
“Early mover” advantage Tethys entered Tajikistan in 2007
Acquired large acreage• Bokhtar PSC, approximately 36,000 km2
(8.9 million acres)
• 25 year initial term
• Exceptional commercial terms
91% of gas/oil in cost recovery stage
70% of gas/oil in profit stage
• Afghan-Tajik portion of the prolific Amu Darya basin
Potential in deeper section for super-giant discoveries• Sub-salt Jurassic carbonate plays & Lower
Cretaceous sands
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Tajik Exploration – Exceptional Resource Base
Gross 27.5 billion barrels oil equivalent1 comprising 113.9 tcf1 (3.22 tcm) of natural gas
8.51 billion barrels of oil/condensate
Gross mean unrisked prospective resources greater than the estimated remaining potential of UKCS2
Net to Tethys 32.2 tcf gas and 2.4 billion bbls oil
Based on seismic (wide line 2D), graviometry, well data & field outcrops
Mainly in deep targets (likely gas condensate)
1 Gross unrisked mean recoverable prospective resources from independent report prepared in accordance with Canadian NI 51-101 by Gustavson Associates (USA) – June 30, 2012, see “basis of preparation of prospective recoverable resources and possible reserves” on page 32.2 Oil & Gas UK forecasts between 14 and 24 billion barrels oil equivalent still to be recovered in the UK Continental Shelf (UKCS)
113.9Tcf of natural gas
8.5 Billion barrels of oil/condensate
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Bokhtar PSC Partnership
Partners with Total and CNPC - Joint Operating Company (BOC)
2013 Farm in to Tethys project
TPL, Total 33%, CNPC 33%
Tethys net 28.33%, local partners 5% Excellent working relationship Each partner provides unique contribution 88.89% of first $80MM work programme funded by partners and 11.11% funded by Tethys
Value added through set up of trading operating company, commencement of work programs, establishment of supply chains, logistics etc
Currently acquiring 826km 2D Seismic program
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Georgia Projects – in Kura Basin
Partners with Georgian Oil and Gas (“GOG”) Tethys 49%, GOG 51% Block XIA, Block XIM, Block XIN Good potential acreage with both conventional and unconventional plays 1.6 Billion boe net unrisked mean prospective resources
Currently being evaluated with the intention to farm down interest or sell.
1.6 Billion boe netunrisked mean prospective resources*
49% 51%Tethys GOG
* Unrisked Mean Prospective Resources as audited by Gustavson Associates as at July 2013. See “Basis of Presentation of Prospective Recoverable
Resources” on page 3228
Investment case
New Board with focus on a performance-based culture and shareholder value
Current production capacity 5,000 boepd, (60% gas, 40% oil) with funded plans to grow this in 2015.
2P reserves of 27.08 MM boe, recoverable prospective resources of 10 billion boe*
Supermajor partners in world class basins
Intense focus on further G&A reductions in 2015
Near term value enhancing triggers
China gas pipeline to drive demand and pricing further
$75 MM capital injection from SinoHan or KazMuniaGaz farm-out
Extensive development and exploration work programme
Kazakhstan:
Drill shallow gas production and exploration wells
3D Seismic program
Klymene oil exploration well
Tajikistan:
Seismic program
* Unrisked Mean Prospective Resources as audited by GustavsonAssociates as at April 2012. See “Basis of Presentation of
Prospective Recoverable Resources” on page 3229
2015 Work Programme – Capex
TotalMinimum
Requirements Exploration Development Infrastructure &
Other
Kazakhstan Capex * 41.9 5 21.3 4.4 11.2
Tajikistan Capex** 15 15
Georgia Capex** 0.9 0.9
TOTAL 2015 Capex 57.9 5.9 30.8 4.4 16.7
*Capital expenditure programme contingent on closing of SinoHan Deal. Tethys funding 50% of the total $42 MM**Tethys share of costs as per the JV. Includes Taj JV G&A
*Main capital expenditure items – the Kyzyloi/Akkulka gas development & exploration program and the Kul-Bas exploration program
Note: $21.3 MM Kaz exploration includes Kyzyloi/Akkulka Gas exploration – i.e. Low risk exploration (13 consecutive successes).
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Disclaimer and Forward Looking StatementsAll material information presented herein has been derived from Tethys Petroleum Limited’s (the “Company”) public disclosure documents filed with the Canadian securities regulatory authorities (which are available at www.sedar.com) and must be read in conjunction therewith (including the risk factors in the latest AIF). This presentation does not constitute an offer to issue or sell any of the securities of the Company nor does it constitute a recommendation regarding any of the securities of the Company. You are encouraged to seek individual advice from your personal, financial, legal, tax and other advisers before making any investment or financial decisions regarding subscribing for or purchasing any securities of the Company. This presentation has not been approved as a prospectus by the UK Financial Conduct Authority ("FCA") under Section 87A of FSMA or by any securities regulatory authority and has not been filed with the FCA pursuant to the United Kingdom Prospectus Rules.
This presentation is being supplied to you solely for your information. This presentation has not been independently verified by FirstEnergy Capital LLP together with its respective shareholders, directors, officers, agents, employees, or advisors, the “Agent”). The presentation does not purport to contain all information that a prospective investor may require in deciding whether or not to subscribe for or purchase securities in the Company. While the information contained herein has been prepared in good faith, neither the Company, its directors, officers or employees nor the Agent give, has given or has authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as “Information”) and liability therefore is expressly disclaimed. Accordingly, neither the Company, its directors, officers or employees nor the Agent take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortuous, statutory or otherwise, in respect of the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising from the use of this presentation. In furnishing this presentation, neither the Company nor the Agent undertake or agree to any obligation to provide the recipient with access to any additional information or to update this presentation or to correct any inaccuracies in, or omissions from, this presentation which may become apparent. Information contained in this presentation is confidential information and the property of the Company. It is made available strictly for the purposes referred to above.
This presentation has not been approved by an authorised person pursuant to Section 21 of the Financial Services and Markets Act 2000 (“FSMA”) and accordingly it is being delivered in the United Kingdom only to persons to whom this presentation may be delivered without contravening the financial promotion prohibition in Section 21 of the FSMA. Those persons are described in the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (“Order”) and include persons who are (i) qualified investors (within the meaning of Prospective Directive 2003/71/EC) and (ii) have professional experience in matters relating to investments and who fall within the category of person set out in the Article 19 (investment professionals) of the Order or high net worth bodies corporate, unincorporated associations or partnerships and trustees of high net worth trusts as described in Article 49 of the Order (in each case "Relevant Persons"). It is a condition of your receiving this document that you represent and warrant to the Company and the Agent that (i) you are a Relevant Person; and (ii) you have read and agree to comply with the contents of this notice. Any investment activity to which this presentation relates in the United Kingdom is available to, and will only be engaged with such persons and this presentation should not be acted or relied upon in the United Kingdom by persons of any other description.
This presentation should not be considered as the giving of investment advice by the Agent. Each party to whom this presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and assumption and each recipient should satisfy itself in relation to such matters. The Agent is acting exclusively for the Company and no one else in connection with the proposed placing and will not regard any other person (whether or not a recipient of this document) as a client in relation to such matters and will not be responsible to any other person for providing the protections afforded to its clients, or for providing advice in in connection with the proposed private placement, or any other matters referred to in this document.
Additional information in respect of the Company’s projects in Georgia, Kazakhstan, Tajikistan and Uzbekistan including location, area, geologic age and lithology, depth, estimated costs and oil and gas marketing information, appears in the Company’s Annual Information Form dated March 31, 2014 available on the Company’s website. Barrels of oil equivalent (“BOE”) may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a valueequivalency at the wellhead.
BASIS OF PRESENTATION OF PROSPECTIVE RECOVERABLE RESOURCES AND POSSIBLE RESERVES
References to "Prospective Recoverable Resources" means those quantities of petroleum estimated, as of July 1, 2013 in respect of Project Iberia (Georgia), January 15, 2014 in respect of the Klymene prospect (Kazakhstan), April 30, 2012 in respect of Akkulka (Kazakhstan) and Kul-Bas (Kazakhstan), and June 30, 2012 in respect of Bokhtar (Tajikistan) to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. There is no certainty that any portion of these resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of these resources. These are UnriskedProspective Resources as of July 1, 2013 in respect of Project Iberia (Georgia), January 15, 2014 in respect of the Klymene prospect (Kazakhstan), April 30, 2012 in respect of Akkulka (Kazakhstan) and Kul-Bas (Kazakhstan), and June 30, 2012 in respect of Bokhtar (Tajikistan) that have not been risked for chance of discovery or chance of development. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development.
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Disclaimer and Forward Looking Statements (continued)
The resources estimates contained or referred to in this presentation are estimates only and are not meant to provide a determination as to the volume or value of hydrocarbons attributable to the Company’s properties. There are numerous uncertainties inherent in estimating quantities of resources, including many factors that are beyond the control of the Company. For a non-exhaustive list of factors which may have a significant impact on the estimates of prospective resources contained herein, see the Company’s Annual Information Form dated March 31, 2014 available on the Company’s website.
Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.
FORWARD LOOKING STATEMENTSThis presentation contains forward-looking statements that are generally identifiable by terms such as anticipated, believe, budget, intend, estimate, expect, outlook, plan or other similar words and includes projected G&A Expenses for 2015 and the expected sale of a 50% interest in the Companys Kazakhstan assets. Also, information relating to reserves and resources is deemed to be forward looking-statements, as it involves the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated, and can be profitably produced in the future.
The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect, including the Companys ability to reduce its G&A costs for 2015 and future periods by the amount stated and that the sale of a 50% interest in the Companys Kazakhstan assets will be completed by April 30, 2015. Actual results will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Such factors include those described in the Company’s Annual Information Form dated March 31, 2014 and include but are not limited to: general economic, market and business conditions; fluctuations in oil and gas prices, the results of exploration and drilling and related activities; fluctuations in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; that approvals for the sale of a 50% interest in the Company’s Kazakhstan assets will not be obtained and the risk that the Company will be successful in all aspects of its cost reduction strategy; and other factors, many of which are beyond the control of the Company.
OVERSEAS JURISDICTIONSThe delivery or distribution of this presentation in or to persons in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of the relevant jurisdiction.
This document is not for distribution in or into the United States and does not constitute an offer to sell, or the solicitation of an offer to buy any securities in the United States. The securities referenced herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act") or under the securities laws of any state or other jurisdiction of the United States, and may not be directly or indirectly offered, sold, delivered or transferred into or within the United States absent registration or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in accordance with any applicable laws of any state or other jurisdiction of the United States. There will be no public offer of securities in the United States.
The securities of the Company have not been and will not be registered under the applicable securities laws of Canada, Australia, Japan or South Africa and, subject to certain exemptions, may not be offered or sold in, or for the account or benefit of any person having a registered address in, or located or resident in, Canada, Australia, Japan, South Africa or the United States. This document is not for publication, release or distribution in, and may not be taken or transmitted into, the United States of America, Canada, Australia, Japan or South Africa and may not be copied, forwarded, distributed or transmitted in or into the United States of America, Canada, Australia, Japan or South Africa or any other jurisdiction where to do so would be unlawful. This presentation may not be provided to any person in Canada or to any person which may be subject to Canadian securities laws.
CONFIDENTIALITY This presentation is strictly confidential and is being provided to you solely for your information and for use at a presentation to be held in connection with the proposed private placing by the Company and may not be reproduced in any form or further distributed to any other person or published in whole or in part, for any purpose. Any failure to comply with this restriction may constitute a violation of applicable securities laws. The information contained herein should be deemed inside information (for the purposes of the Criminal Justice Act 1993 (the "CJA") and within the meaning of the FSMA). Accordingly, behaviour by the recipient in relation to the information contained in this document may constitute the offence of insider dealing within the meaning of the CJA or market abuse within the meaning of the FSMA. In particular, the recipient may not deal in the securities of the Company until such information ceases to be inside information. By participating in this document and/or by accepting any copy of this document, you agree to be bound by the foregoing limitations and conditions and, in particular, will be taken to have represented, warranted and undertaken to the Company and the Agent that: (i) you have read and agree to comply with the contents of this notice, including, without limitation to the obligation to keep this document and its contents confidential; and (ii) you will not at any time have any discussion, correspondence or contact concerning the information in this document with any of the directors or employees of the Company or its subsidiaries, nor with any of their suppliers, or any governmental or regulatory body without the prior written consent of the Company.
IN THIS PRESENTATION ALL FINANCIAL FIGURES ARE IN US$ UNLESS OTHERWISE STATED
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APPENDIX
33
New Tethys Board
Chief Executive OfficerJulian Hammond
Non-Executive DirectorMarcus Rhodes
Non-Executive Director Jim Rawls
Chief Financial OfficerDenise Lay
Executive ChairmanJohn Bell
Non-Executive Director David R. Botting
Non-Executive Director David R. Henderson
Non-Executive Director David M. Roberts
Joined 2014
34
35
TPL Net Asset Value
Net Asset Value based on Market Value of Assets as calculated by Company: USD$ 212.25m*
USD$ /Share: 0.63 GBP/Share: 0.40 (GBP/USD:1.58)
Value (USDm) Value (GBPm)
MV Kazakhstan 160 101.27MV Tajikistan 45.75 28.96Georgia historical Costs 12 7.59MV Rigs 15 9.49Cash 7 4.43less: loans & advances (17) (10.76)Less: G&A (10.5) (6.64)
TOTAL 212.25 134.33Number of Outstanding Shares 336Value/Share 0.63 0.40
* See assumptions on next page
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TPL Net Asset Value
MV Kazakhstan• Based on SinoHan transaction plus $10 million loan funded to date
MV Tajikistan• Based on Total and CNPC farm-in deal value & back costs till December 2014.
• $63M paid for 66.66% of Tajikistan; therefore 100% = $94.5M.
• 100% of costs from inception to End of December 2014 = $41.2M.
• Total: $135.7M
• TPL Participating Interest (28.33%) = $38.44M
• Add: Remaining Carry $7.31M (85% of $8.6M)
• TPL Share: $45.75M
MV Georgia• Based on investment to date (including Farm In consideration of $9.6M)
MV Rigs• Market Value of Rigs (Independent Appraisal of $15M in 2014)
Cash• Current cash balance
Loans and advances• $6 million loan, Rig loan, released escrow funds
Less G&A• One year
36
Bokhtar 2015/16 Work programme
2015/16 WP Phase 1 (of 2) - an 826km 2D wide line
seismic survey expected to finish in H2 2015 Magnetotelluric acquisition Jurassic petroleum geological survey Cretaceous petroleum geological survey Field work, G&G studies, well log digitization etc. Reinterpretation and integration of
previous Tethys (2009) seismic into model
JV Partners expect to receive the first fully processed data in late March 2015 and thenin batches from September – November 2015
Phase 2 of the wide line seismic surveyplanned to commence in Q4 2015
All BOC and JV partners aim to have agreed a preferred first drilling location based on
mapping by end 2015
37
Proven Drilling Track Record - Kazakhstan
0
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AKD02 AKD04 AKD05 AKD06 AKD07 AKD09
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AKD01 KBD01 AKD08
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Depth Days
AKD03 excluded as drilling plan changed during drilling operations38
Tethys Petroleum Contacts
Tethys Petroleum Investor Relations
Sabin RossiVice President Investor Relations
E-mail: [email protected]
Corporate broker
FirstEnergy “Capital LLP”
Hugh Sanderson / David van Erp
Office: + 44 207 448 0200
Company electronic communication
E-mail: [email protected]
Web: www.tethyspetroleum.com
Mobile site: m.tethyspetroleum.com
Ticker: TSX:TPL LSE:TPL
39
Tethys sponsored horse racing on the Steppe, Bozoi, Kazakhstan40
