Tethys (TSE:TPL) (LON:TPL) said it has increased its proven reserves by 18 percent and its proven and probable reserves by 7 percent from the previous year period, driven by the company's production performance and successful gas well drilling last year.
The Central Asia-focused oil and gas producer released an updated year-end reserves report this morning, showing proven, or 1P, reserves of 16.62 million barrels of oil equivalent.
This is up 18 percent from year-end 2013, representing the highest volume in Tethys's history in this reserve category, it said.
Proven and probable, or 2P, reserves increased 7 percent to 27.08 million barrels of oil equivalent, the second highest volume ever recorded for the company in this category.
Tethys produced 0.84 million barrels of oil in 2014 and 4.07 billion standard cubic feet of total gas. The company said its reserve replacement ratio --- which measures the amount of proved reserves added to a company's reserve base during the year relative to the amount of oil and gas produced --- was 163 percent for the 1P category, showing strong organic growth.
"The growth in booked reserves is a reflection of excellent work in prospect maturation by the Tethys exploration team," said chairman of the reserves committee for Tethys, David Roberts.
Tethys said its plan for this year will be to mature exploration prospects and monetize gas prospects through development drilling, while also increasing its focus on field equipment.
"We look forward to building on the figures in the Gustavson report during 2015, and with the reserves update concluded, we intend to issue a new corporate presentation in the coming days," said Roberts.
In January, Tethys outlined its progress to investors made since the oil and gas company's board and executive management was overhauled late last year. The company said that in addition to cost reductions, a new US$6 million loan and doubled gas production in Kazakhstan, it reached a deal to restructure its Georgian project and remove its current funding obligations of about US$4 million under the farm-out signed in July 2013.
It also recently received approval from the energy ministry of Kazakhstan to extend its Kyzyloi gas production contract for another 15 years.
In today's report, the company's proven and probable reserves were estimated to have an after-tax net present value of $185.86 million, discounted at 10 percent.