NEW NEWS August 10, 2017 Tethys Petroleum Press Release(TSX: TPL)
Update Regarding Various Legal Proceedings
GRAND CAYMAN, CAYMAN ISLANDS - Tethys Petroleum Limited (“Tethys” or the “Company”) today provides an update with respect to three different legal proceedings.
TAG Rehabilitation Filing
On August 10, 2017, Tethys Aral Gas LLP (“TAG”), a wholly owned subsidiary of Tethys, filed an application for rehabilitation with the Special Economic Court of Aktobe Region (the “Rehabilitation Court”). The application is subject to review and approval by the Rehabilitation Court. Pending such review and approval, TAG will continue business as usual, provided that no creditor may take any adverse action against TAG in such review period, including EGG (as defined below) attempting to enforce the decision of the Court of Appeal in Almaty discussed below. In addition, TAG may, if circumstances change, withdraw its application for rehabilitation at any time. On August 2, 2017, the Court of Appeal in Almaty found in favour of Eurasia Gas Group LLP (“EGG”) in its appeal of the decision of the lower court made in Tethys’ favour in February 2017 in relation to a lawsuit that arose in connection with a contract for oil sales between EGG and TAG dated 2012. Tethys intends to appeal this decision to the Supreme Court in Almaty and believes that it has a strong case to do so. As noted above, EGG may not enforce the decision of the Court of Appeals as TAG has filed an application for rehabilitation with the Rehabilitation Court.
RBK Lawsuit
On August 8, 2017, Tethys commenced an action against RBK Bank seeking an order that it provide Tethys with access to records regarding the loan (the “RBK Loan”) that it provided to EGG, and which is integral to the action EGG brought against TAG that is referred to above. Submissions were made to the court, and completed, on August 8 and 9, with a decision expected to be released on August 20, 2017. Tethys is seeking access to such records as it believes such records will support it in its appeal in the proceeding involving EGG.
Ruling Against Alex Skripka in Civil Case
On July 26, 2017, the Aktobe City Court (the “City Court”) found in favour of Tethys Services Kazakhstan LLP (“TSK”), a wholly owned subsidiary of Tethys, in a proceeding brought by Alex Skripka (“Skripka”). Skripka alleged that his employment agreement with TSK had been improperly terminated and that, among other things, he was entitled to reinstatement of his position with TSK and recovery of certain wages. The City Court found that the employment agreement had been properly terminated and that Skripka has no entitlement to further employment with TSK or to any recovery of wages.