Tethys Petroleum Limited reports that it expects to complete a private placement of 26,062,975 Ordinary Shares for gross proceeds of USD13,069,187 million, subject to regulatory approval. The Company has received orders for the USD13,069,187 million maximum amount of the Offering. These new Ordinary Shares represent 10% of the current issued share capital of the Company.
The Ordinary Shares have been placed at a price of CAD0.52 each. The Ordinary Shares of the Company are listed on the Toronto Stock Exchange and the London Stock Exchange under the symbol "TPL" and the placement is subject to approval by the Toronto Stock Exchange and admission of the Ordinary Shares issued pursuant to the offering to the official list of the financial services authority and to trading on the London Stock Exchange. The private placement is scheduled for completion on or about December 14, 2011.
The net proceeds of the Offering will be used by Tethys to contribute towards the purchase of an additional 34% of shares in Seven Stars Energy Corporation the joint venture that owns the rights to the Bokhtar Production Sharing Contract in Tajikistan, and to carry out additional work on the Beshtentak oilfield in Tajikistan where Tethys has recently been flow testing a recompleted well at rates of over 600 barrels of oil per day. Currently Tethys owns 51% of the shares in SSEC and has an option to acquire a further 34% of SSEC from its partner. In addition, when the Option is exercised, the outstanding loan from Tethys to SSEC will be restructured. Tethys proposes to exercise the Option following completion of the Offering. After the completion of the exercise of the Option, Tethys will own 85% of the shares in SSEC.
One of the subscribers is a related party of the Company within the meaning of applicable Canadian securities laws. The proposed date for completion of the private placement is less than 21 days from the date of this release to ensure the availability of the proceeds to the Company on a timely basis. Additional information relating to the interest of the related party in the private placement will be contained in a material change report to be filed in accordance with Canadian securities law.
Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Kazakhstan, Tajikistan and Uzbekistan. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to United States Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.