Presentation

Tethys Oil is a Swedish E&P company focused on areas with known oil and gas discoveries that have not been properly appraised using modern technology. Tethys has oil and gas assets primarily in Oman. The company was formed in 2001 and is listed on the Stockholm Stock Exchange.

Over the past decade, the Tethys Oil story has become increasingly a story of its prolific Block 3&4 in Oman. As a result of successful exploration, appraisal and production drilling, net production from the block has surpassed 11,000 bbl/day. The main producing fields on the block are Farha South, Saiwan East and Shahd, which are continuously being expanded by near-field exploration and appraisal wells. The block is operated by CC Energy Development, which is applying a production and cash flow-focused approach to drilling, as opposed to committing capital to a comprehensive appraisal program. The relatively low-cost production growth in Oman has enabled Tethys Oil to accumulate cash in recent years, with cash also being distributed to shareholders both as ordinary dividends and extraordinary distributions – rare for a small E&P company. Tethys’ production has been stable in recent years, partially due to a cap under the OPEC+ output deal, but we expect a return to production as the restrictions have gradually eased during 2021. In the 2019-2020 period, Tethys has been able to secure working interest positions in three additional appraisal and exploration blocks in Oman, which will be evaluated over the coming years.

As a result, Tethys Oil now holds a portfolio consisting of relatively low-cost and low-risk production which has yielded solid growth in production and revenue in recent years, and growth opportunities in its exploration and appraisal blocks. In addition, the company has distributed cash to shareholders since 2015 and continued to do so all through the oil price downturns of 2016 and 2020, a testament to the operational and financial resilience of the company.