GRAND CAYMAN, CAYMAN ISLANDS--(Jan. 16, 2017) - Tethys Petroleum Limited (TSX:TPL)(LSE:TPL) ("Tethys" or the "Company") today announces a corporate update.
Georgia Work Programme Commitments
Tethys partner in Georgia, Georgia Oil and Gas Limited ("GOG"), has been notified by the Georgian State Agency of Oil and Gas that GOG and Tethys will not be required to complete the previously agreed work programme commitment to conduct 50 km of 2D seismic acquisition in Block XIN by June 30, 2017 which would have cost Tethys approximately US$700,000.
Had the minimum commitments previously agreed not been met then Tethys may have been subject to penalties of up to US$2 million.
Instead of the previously agreed commitment the agency will evaluate whether the partners should instead conduct 50 km of 2D seismic acquisition over an alternative prospective area. The deadline for any such work has not yet been determined.
Kazakhstan Change of Registered Address and Relocation of Office to Aktobe City
In December 2016 Tethys completed the transfer of the registered legal addresses of its three Kazakhstan subsidiaries, Tethys Aral Gas LLP, Kul-bas LLP and Tethys Services Kazakhstan LLP from Almaty to Aktobe City.
Tethys also plans to relocate its main administrative office from Almaty to Aktobe City during the first half of 2017 where it already has an office.
These changes are part of an ongoing process of corporate reorganisation and cost optimisation. Tethys field operations and exploration acreage are both in the Aktobe region which is in the west of Kazakhstan and Aktobe City is the main regional centre.
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, relocation of its Kazakhstan office to Aktobe City and the requirement for future seismic acquisition in Georgia. 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, relocation of its Kazakhstan office to Aktobe City and the requirement for future seismic acquisition in Georgia.
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
130 King Street West, Suite 1800