GRAND CAYMAN, CAYMAN ISLANDS–(March 29, 2017) – Tethys Petroleum Limited (TSX:TPL)(LSE:TPL) (“Tethys” or the “Company”) today announces that Great Wall Drilling Company was the winner of a tender for a ten well shallow gas well drilling program. Tethys now has ten (10) days to sign a contract with Great Wall, the cost of which drilling is expected to be approximately $6 million USD. The Company will have until the end of 2018 fiscal year to pay these costs and expects to be able to pay from increased production. Following mobilization, the Company hopes to begin drilling on or about May 1, 2017. Additionally, the Company will work over three existing wells and tie in two wells drilled but not tied into production. This program is designed to add twelve (12) or more new wells to existing production.
The Company also announces the signing of a lease contract with MSI to build and install a mini-compressor in Bozoi. Installation is expected during the July 2017 time period. This is new technology for Central Asia and is intended to enhance gas production prior to the new wells being tied in. After new production is tied in, then the mini-compressor will be used on older wells to extend the life of wells.
While the Company will continue to reduce operational costs, our focus this year is increasing production of both oil and gas. Additionally, we will seek to enhance pricing. Until these goals can be achieved, Tethys will continue to experience a cash flow problem and a need for funding.
The Company has received approval of the needed lenders to extend the $3.5 million loan that is secured by the drilling rigs of the Company by 18 months to August 2018. Additionally, the Company is in discussions with both Khan Energy and AGR Energy to extend the indebtedness owed to each of them which is currently due in March and June 2017 respectively.
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 the potential that exists in both exploration and in discovered deposits in Central Asia and the Caspian Region, entering into a contract with Great Wall, expected costs of the contract with Great Wall, the Company’s ability to pay for such contract and the ability of the Company to successfully negotiate extensions of loans with both Khan Energy and AGR Energy. 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 risks and uncertainties with respect to the potential that exists in both exploration and in discovered deposits in Central Asia and entering into contract with Great Wall, expected costs of the contract with Great Wall, the Company’s ability to pay for such contract, the benefits of the ESP and the ability of the Company to successfully negotiate extensions of loans with both Khan Energy and AGR Energy.
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.
Tethys Petroleum Limited
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