Tethys Petroleum’s (LON:TPL, TSE:TPL) turnaround is now well underway, according to executive chairman John Bell.
The Kazakhstan-focussed oil and gas business, which last week entered takeover talks with Nostrum (LON:NOG), today revealed a 77% increase in gas output to 3,250 barrels oil equivalent per day which marked it as the best quarter for gas production for three years.
Overall, second quarter production totalled 5,204 boepd, a 21% improvement compared with the same period of 2014.
Revenue for oil and gas amounted to US$6.8mln, down from US$7.1mln, though the contribution solely from gas increased by 137% to US$4.8mln.
Tethys reported negative adjusted earnings of US$4.4mln, and reported a US$25.3mln loss from continuing operations.
“I am encouraged by the performance of the gas division and the cost reductions achieved at group level,” Bell said.
“The strategic review is ongoing, and the team is working hard to both conclude the strategic review process and continue to improve the operations."
Tethys ended the second quarter with US$4.9mln of cash as at June 30.
Nostrum last week agreed to provide a short term loan of US$5mln as it entered a period of exclusivity and opened talks with Tethys management over a possible takeover.