Tethys Oil expects reserve additions and revisions to be positive in 2023 but not enough to fully offset the full year production of 3.2 MMbbl. (Source: Shutterstock)
E&P company Tethys Oil expects to recognize a non-cash impairment charge between $37 million-$47 million, based on results on an impairment test conducted on their oil and gas properties, the company announced Jan. 24.
Tethys performed this test after their 2023 investments in exploration and development did not yield the production results they expected.
Tethys Oil expects to recognize exploration costs of $6.3 million in the fourth quarter 2023, relating to four exploration wells in blocks 3 and 4 of their interests in the Sultanate of Oman that have not yielded commercial discoveries.
“Looking back on the full year 2023, we are not happy about the general development and the return on investments made. This development is reflected in the impairment charge to our oil and gas properties,” Magnus Nordin, managing director of Tethys, said in a press release.
Tethys Oil expects reserve additions and revisions to be positive in 2023 but not enough to fully offset the full year production of 3.2 MMbbl.
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