Tethys Petroleum (TSXV: TPL) experienced a notable financial turnaround in the first quarter of 2025, with oil and gas sales reaching $4.0 million, a 104% increase from $1.9 million reported in the same period last year. This resulted in a net profit of $0.3 million, contrasting with the $1 million loss reported in Q1 2024. Despite these improvements, the company’s revenues did not meet management’s expectations due to various operational challenges.
The company is currently facing production constraints, partially due to an increased gas-to-oil ratio (GOR), which necessitates a reduction in output to about 250 tons per day from the licensed capacity of 485 tons per day. Tethys also deals with logistics issues and challenges from mini-refinery buyers, which have been exacerbated by the elimination of naphtha exports. Additionally, spring weather conditions have negatively affected road accessibility, complicating logistics further.
Tethys is actively conducting seismic surveys on its Aral 4 and Diyar blocks through its subsidiary, DMS. The company plans to identify and drill exploration wells by the end of 2026, subject to obtaining necessary regulatory approvals. These efforts are part of Tethys’s strategy to enhance its exploration and production capabilities in the Central Asian and Caspian regions.