Tethys Petroleum said it is now “better placed” after “unprecedented challenges” last year due to the low oil price.
The company said it had been badly impacted by the massive depreciation of the Kazakh Tenge which has put a “severed strain” on the banking industry in the country.
Tethys said the loss for the year was $74.6million compared to $16.4million in 2014, while depreciation, depletion and amortisation was $27.5million higher than the prior year.
John Bell, co-chairman, said: “2015 saw unprecedented challenges in the oil and gas industry worldwide.
“Kazakhstan saw its own unique challenges with declining prices and a massive depreciation in the Kazakh Tenge
starting the year at 180 Tenge to the USD and ending up around 350 Tenge to the USD.
“This put pressure on revenues and a severe strain on the Kazakh banking industry.
“Despite this the company adjusted to the new paradigm and in 2015 we have halved the company’s G&A and Business Development expenses, whilst increasing gas production by 98% at a higher gas price.
“These costs are forecast to reduce further to $6 million on an annualised basis.
“Furthermore, we secured a new in-country strategic partner in Olisol Petroleum Limited and progressed on reaching a binding agreement which will lead to a recapitalisation of the business, ensure the company’s continued operations and will see Olisol becoming a major shareholder.
“I believe we are now better placed to realise value from the assets and have the right in-country partner to achieve success in Kazakhstan.”
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