Tethys Petroleum Announces Proposed Offering of Common Stocks
OREANDA-NEWS. December 07, 2011. Tethys Petroleum Limited ("Tethys" or the "Company" (TSX:TPL) (LSE:TPL)) announced that it expects to complete a private placement of 26,062,975 Ordinary Shares for gross proceeds of USD13,069,187 million (the "Offering"), 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, reported the press-centre of KASE.
The Ordinary Shares have been placed at a price of CAD0.52 (GBP0.32) 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 ('SSEC'), 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 (the "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.