Tethys Petroleum (LSE: TPL), the Central Asia focused oil and gas explorer, said it is still waiting on the Kazakh government to waive its pre-emption rights for an investment in the region dating tolast November. The Kazakh governments energy ministry has recently been restructured meaning additional time may be required to make a decision. Tethys shares slumped by 7% to 17.5p.
Work is continuing on the gas project in Kazakhstan, with additional field pipelines installed, and Tethys expects to meet its production target of three times current gas production at the beginning of 2015.
Tethys is looking east to theChinese market for its huge upside potential and work on the Tajikistan-China gas pipeline a potential export route from Bokhtar to China is ongoing.
In Georgia, limited capital expenditure is required for Tethys to fund its commitments on a number of oil plays, and it is working on the best way to optimise costs going forward.
The board is carrying out a comprehensive review of costs, efficiencies and strategy in response to issues raised by shareholders at the AGM. Russ Hammond is retiring in October, to be replaced bya new non-executive director, who will help the chairman to push through a number of changes to better focus the company.
We are firmly of the opinion that the potential of the Companys assets, geopolitical presence and operating team, is not reflected in the current share price, the chief executive, Dr David Robson, commented.
Ill leave you to decide whether or not the change agenda can redress the slump in the shares.
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Mark Stones has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.