The company Tethys Petroleum Limited provided an operational update concerning its assets in the Republic of Kazakhstan following a formal reserve evaluation carried out by McDaniel and Associates Consultants. The report is dated as of December 31, 2026 and was prepared in compliance with NI 51-101 and the COGE Handbook. The audit found that, on a volumetric basis, core reserve categories remained broadly stable year over year, while discounted monetary valuations declined.
For readers unfamiliar with the terminology, NPV here refers to Net Present Value, a financial metric that discounts future cash flows to today using a specified discount rate.
This summary highlights the principal figures from the McDaniel report and explains the drivers behind the change in value. It also outlines the regulatory and fiscal environment affecting the company’s ability to monetize hydrocarbon production on international markets. Throughout the text, key technical terms such as Barrel of Oil Equivalent (Mboe) and discount rate are emphasized to help investors and analysts quickly locate important metrics and concepts.
Table of Contents:
Reserve summary and headline numbers
The independent audit reported the following net volumes: Total Proved Reserves were approximately 46,686 Mboe in 2026 versus 46,960 Mboe in 2026; Total Proved and Probable reserves were about 84,844 Mboe in 2026 compared with 85,554 Mboe in 2026; and Total Proved, Probable, and Possible reserves were roughly 125,332 Mboe in 2026 versus 126,802 Mboe the prior year. These figures indicate minimal movement in physical volumes, and the report also provides monetary valuations at different discount levels to reflect the present value of future production.
NPV results at selected discount rates
The report presents NPV after taxes at both 0.0% and 10.0% discount rates. For 2026, the Total Proved and Probable category yields an NPV of about $474 million at a 10% discount, down from approximately $560 million in 2026 — a decline of roughly 15%. At 0% discounting the same category is reported at about $922.6 million in 2026 versus $1,158.3 million in 2026. Those numbers illustrate how sensitive valuations are to market pricing and fiscal assumptions.
Factors behind the valuation decline
The primary causes the consultants identified for the reduced NPV are a fall in international marker prices, notably Brent crude, and declines in domestic oil prices that affect realizable revenues. In addition, the prevailing fiscal and regulatory regime imposes substantial taxes and export-related costs that reduce the upside from selling crude on global markets. Put differently, even when the physical stock of hydrocarbons stays the same, lower commodity prices and a heavy tax burden reduce the present value of future receipts.
What the fiscal environment means
The report emphasizes that export taxation and associated charges materially affect project economics, limiting the benefit of accessing higher international benchmarks. For investors, this means that changes to the tax code, export tariffs, or subsidies would have an outsized impact on valuations. Monitoring those policy levers is therefore as important as tracking global oil prices when assessing upside or downside risk to the asset base.
Investor considerations and company outlook
Tethys notes that it continues to focus on exploration and production in Central Asia and the Caspian Region and that the reserve report provides a technical snapshot to guide stakeholders. The company reiterates standard cautionary language: certain statements are forward-looking and are not invitations to invest. Management also states that, except where required by law, it will not necessarily update forward-looking statements to reflect subsequent events. Market participants should interpret the report as a compliance-driven disclosure intended to quantify reserves and associated values under current assumptions.
What to watch next
Key variables for future updates include global oil price movements, domestic price controls, changes in the export tax framework, and any operational developments that affect production profiles. The discount rate assumptions used in valuations are another important sensitivity. For the complete technical release and source material, the company points readers to the original filing hosted via Newsfile at https://www.newsfilecorp.com/release/292040, where the full McDaniel report and tables can be reviewed.
