Tethys Petroleum Corporate Update
Grand Cayman, Cayman Islands--(Newsfile Corp. - March 30, 2021) - Tethys Petroleum Limited (TSXV: TPL) ("Tethys" or the "Company") today provide a corporate update.
In order to fund short term cash obligations, the Company has decided to pursue a private equity placement for 2,592,115 ordinary shares at .67 CAD per share (C$1,736,717). These proceeds will be used to fund previously incurred drilling expenses, 3D and 2D seismic expenses as well as selling, general, and administrative expenses. The placement is to Pope Investments II, LLC, an investment fund managed by Pope Asset Management, LLC. William Wells, the Chairman of Tethys Petroleum is the President of Pope Asset Management, LLC and has a minority ownership interest in Pope Investments II, LLC. The private placement is considered a Related Party Transaction as defined under Multilateral Instrument 61-101 since Mr. Wells is the Chairman of the Company. The transaction is exempt from the valuation and minority shareholder requirements thereunder since the consideration in the transaction is less than 25% of the market capitalization of the Company. This placement is conditional upon receiving approval from the TSX Venture Exchange.
Tethys is in the process of trying to secure a line of credit up to USD$30 million from a Kazakhstan bank. This financing is key for the Company's operational plans for 2021.
Subject to Tethys securing financing, the company is planning to drill four wells in 2021 in the Kul-Bas field at distances of approximately 500-2000 meters away from KBD-02 (KBD-03, KBD-06, KBD-07, and KBD-08). The first well KBD-03 is scheduled to commence drilling as early as April 1 if the loan or driller financing can be arranged. While KBD-03 is approved under the exploration license, the other three wells need approval from the MOE. These requests have been submitted.
On the Akkulka gas field Tethys is planning to drill up to 4 exploration gas wells, AKK-21, AKK-28, AKK-29, and AKK-30. The decision on whether or not to drill the later wells will be dependent upon the success of the earlier wells. On the Kyzyloi field Tethys is planning on drilling one gas development well, KYZ-121. All plans are subject to financing.
Tethys has received a resource report and reserves assessment from McDaniel on the Klymene field. This report was prepared in compliance with NI51-101, Standards of Disclosure for Oil and Gas Activities and the COGE Handbook. Their summary of mean reserves is estimated to be approximately 94.8 million barrels of crude oil with a P90 low estimate of approximately 35.8 million barrels and a P10 high estimate of approximately 174 million barrels.
Tethys is focused on oil and gas exploration and production activities in Central Asia and the Caspian Region. Tethys believes that significant potential exists in both exploration and in discovered deposits in the area.
Some of the statements in this document are forward-looking. 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 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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