GRAND CAYMAN, CAYMAN ISLANDS--(Marketwired - Aug. 23, 2016) - Tethys Petroleum Limited (TSX:TPL)(LSE:TPL)
("Tethys Petroleum" or the "Company") today announces a corporate update.
Par Value Reduction
The Grand Court in the Cayman Islands has approved a motion by Tethys Petroleum to reduce the par value of the Company's
ordinary shares to USD 0.01. Accordingly, the Company is now in a position to give effect to the reduction in the par value
of its ordinary shares by making the necessary filing with the Cayman Islands Registrar of Companies. This filing is the
last remaining hurdle before the Olisol private placement transaction (announced on April 29, 2016) can complete. The
Company expects the filing to be made and the private placement transaction completed by September 2, 2016.
Cost Optimisation
The Board of Directors has adopted a new cost optimisation programme, that once fully implemented, should save the company an
estimated USD 2.5 million a year. The programme follows an extensive review into costs and operations that was started after the
Company's May 31, 2016 Annual General and Special Shareholders Meeting.
Other Items
As referred to in our Q2, 2016 financial statements the assets of one of the Company's Kazakhstan subsidiaries remain frozen
after the first Court hearing of a claim brought against the Company by a private individual in relation to the USD 7.5 million
debenture due June 30, 2017 originally issued to AGR. The Court is scheduled to hold further hearings on Tuesday, August 23.
Tethys expects a release of its assets and hopes for dismissal of all claims. Tethys has been working tirelessly to resolve what
it believes is an unfounded claim.
Management comments
Kenneth May, Interim Chief Executive Officer says: "The Company has been through a challenging time. Working with Olisol, the
Company should be able to boost profitability by restarting the shallow gas drilling programme to increase production, while at
the same time cutting costs and increasing efficiency."
About Tethys
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.
About Olisol
Olisol and its subsidiaries and affiliates have investments in energy and oil and gas operations in the Russian Federation and
Kazakhstan. The Company has more than seven years of experience with Tethys in Kazakhstan and owns the Aral Oil Terminal in
partnership with Tethys. Olisol has its own fleet of specialized oil tankers engaged in automobile transportation of oil from the
Tethys fields and through its subsidiaries, is engaged in rail transportation, oil refining, storage and sale of petroleum
products. Olisol is incorporated under the laws of Cyprus and is headquartered in Almaty, Kazakhstan.
Disclaimer
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 Olisol placement transaction and
related transactions, cost optimisation programme and the outcome of a dispute relating to the debenture issued to AGR. 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 completion of the private placement transaction and related
transactions (including the risk that such transaction may not be completed or may be delayed beyond September 2, 2016) and the
outcome of the hearing over the dispute over the claim in respect of the debenture issued to AGR (including the risk that the
Company will not succeed in the release of the funds deposited by a subsidiary in a Kazakhstan bank) and the cost optimisation
programme (including the risk that such programme will not generate the savings expected).
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.