17th Aug 2015 10:14
LONDON (Alliance News) - Tethys Petroleum Ltd, the company that is currently being pursued as a takeover target by FTSE 250-listed Nostrum Oil and Gas PLC, reported a significantly wider pretax loss in the first half of 2015.
Tethys, which previously rejected an offer from Nostrum, has agreed to negotiate a USD5 million loan financing to support the short-term liquidity of Tethys during the period in which any formal offer may be implemented by Nostrum.
Nostrum's current offer to acquire the entire issued share capital of Tethys is for CAD0.2185 per Tethys share, valuing Tethys at around CAD73.6 million, or around GBP36.2 million.
Nostrum has been granted exclusivity on the talks until August 25, though it said there is no certainty a formal offer for Tethys will be made.
On Monday, Tethys reported a pretax loss of USD30.2 million in the first half of 2015, widening from a USD8.8 million loss a year earlier. That was mainly caused by depreciation and amortisation costs rising to USD21.3 million compared to only USD299,000 a year earlier.
Revenue in the period also fell to USD12.8 million from USD13.9 million, compounded by higher sales costs.
Gas production was higher in the period, with production in the second quarter rising to its highest level in three years to 3,250 barrels of oil equivalent per day compared to only 1,839 barrels a year earlier. Total production was up 21% in the second quarter to 5,204 barrels of oil equivalent per day compared to 4,312 barrels a year earlier.
Nostrum shares were up 0.4% to 546.00 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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