Tethys Petroleum Limited (“Tethys” or the “Company”) (TSX:TPL) (LSE:TPL) acknowledges the public announcement by Olisol Investment Group (“Olisol”) on October 9, 2015 regarding a non-binding proposal submitted to the Company along with suggestions that Tethys has not engaged with Olisol or considered Olisol’s proposal.
The Tethys Board disagrees with much of the content in the Olisol release and Tethys has requested that Olisol publically corrects the statements made.
The Tethys Board would like to inform shareholders that the Company has been engaging extensively with all parties which have submitted proposals to Tethys (“Interested Parties”), including Olisol, since the exclusivity period with Nostrum Oil & Gas PLC ended at 11.59pm on October 6, 2015 (“Nostrum Exclusivity Period”). These proposals are being actively considered by the Tethys Board to determine which proposal is in the best interest of all Tethys stakeholders.
Since the end of the Nostrum Exclusivity Period, the Company has been fully focused on trying to conclude a transaction with Interested Parties as quickly as possible. This has included extensive correspondence, discussions and negotiations over this period. At this stage, there remains significant uncertainty with respect to these proposals and all remain non-binding and are subject to a number of conditions. The Company has taken the prudent and necessary steps to clarify these uncertainties and conditions, such as proof of funding, to ensure all proposals can be appropriately assessed and to determine which may be in the best interest of all Tethys stakeholders.
Tethys also notes Olisol’s proposal for an immediate investment of US$1.28 million upon the execution of a letter of intent relating to its proposal to potentially allow Tethys to remedy an outstanding default on its Tajikistan license. This non-definitive proposal from Olisol was received too late to clarify, negotiate and enter into binding agreements in time and the Company could not remedy the default payment by the due date of October 9, 2015 based on a non-binding, non-clarified proposal. Furthermore, the proposed immediate investment would not provide sufficient funds to fully remedy the current default payments on its Tajikistan license in the near term, nor would it provide funding certainty for further payments going forward which could total US$12-US$15 million over the next 6 months. Further, accepting the terms upon which the immediate investment had been proposed from Olisol could have prejudiced other Interested Parties and their potential alternative proposals.
Tethys did however propose to Olisol to make the Tajikistan payment directly on Thursday, October 8, 2015, which Olisol declined to do.
Tethys continues to work with Olisol and other Interested Parties to conclude a transaction as soon as possible. All parties have been asked to submit in short order any final revisions to their offers in order to have final proposals for evaluation by the Tethys Board. There can be no certainty that any proposal will result in a transaction, nor as to the terms on which any such transaction resulting from a proposal may be finalised.
Tethys is focused on oil and gas exploration and production activities in Central Asia and the Caspian Region. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.
Some of the statements in this document are forward-looking. Forward-looking statements include statements regarding the intent, belief and current expectations of the Company or its officers with respect to a possible offer or agreement and further financing. When used in this document, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should” and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to risks and uncertainties that could cause actual outcomes to differ materially from those suggested by any such statements, including the fact that there is significant uncertainty that discussions between Tethys and Olisol and other Interested Parties will lead to an agreement or offer to shareholders or to any further financing being provided by Olisol or any other Interested Parties to Tethys.
No part of this announcement constitutes, or shall be taken to constitute, an invitation or inducement to invest in the Company or any other entity, and shareholders of the Company are cautioned not to place undue reliance on the forward-looking statements. Save as required by the Listing Rules and applicable law, the Company does not undertake to update or change any forward-looking statements to reflect events occurring after the date of this announcement.
CAMARCO (Financial PR)
Ginny Pulbrook/ Billy Clegg / Georgia Mann
+44(0)203 757 4983