Loan Facility Agreed
ALMATY, KAZAKHSTAN, Jun 29, 2012 (MARKETWIRE via COMTEX) --Tethys Petroleum Limited (TSX: TPL)(LSE: TPL) today announced that its Kazakh subsidiary had reached agreement on a USD 16.5 million loan facility.
This facility is provided by a Kazakh bank to Tethys Aral Gas, a wholly owned Kazakh subsidiary of Tethys, and is available to fund capital expenditures in Kazakhstan. It can be drawn down at any time but the company is under no obligation to do so.
This facility has a term of up to four years depending on the company's requirements and bears an interest rate of 14% per annum on sums drawn down. It is to be secured against field facilities in Kazakhstan. An initial USD 3.5 million of this facility has been drawn down.
Bernard Murphy, Chief Financial Officer, stated "This facility provides flexibility to meet the company's possible funding requirements should the company wish to make use of it and I believe it is prudent financial management at this time."
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 contains "forward-looking information" which may include, but is not limited to, statements with respect to our operations. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions. See our Annual Information Form for the year ended December 31, 2011 for a description of risks and uncertainties relevant to our business, including our exploration activities (which are incorporated herein by reference). The "forward looking statements" contained herein speak only as of the date of this press release and, unless required by applicable law, the Company undertakes no obligation to publicly update or revise such information, whether as a result of new information, future events or otherwise.
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SOURCE: Tethys Petroleum Limited