Tethys Petroleum Limited ("Tethys"), the oil and gas exploration and production company focused on Central Asia and the Caspian Region, is pleased to announce that it has received the appropriate Georgian governmental consent for the acquisition of a 56% interest in Blocks XIA, XIM and XIN (Project "Iberia") in eastern Georgia. Tethys also announced that it will exit Uzbekistan.
The amendments to the Production Sharing Contracts ("PSCs") have been declared effective and will now be registered with the appropriate State bodies.
Tethys will not complete at this time the previously announced acquisition of Blocks VIII and XIG (Project "Tamar") as Tethys does not believe that all of the conditions relating to this acquisition will be fulfilled, and deciding instead to focus investment and resources at this time on the Iberia blocks where both conventional and unconventional resources are better defined at present. The 8,320,000 ordinary shares previously issued with respect to this project will be cancelled, resulting in the current shares outstanding being 299,557,744.
Tethys has made a corporate decision to exit Uzbekistan effective immediately due to recent changes in the business climate and political environment. It is expected to take up to three months to complete the process of exiting from the existing Production Enhancement Contract ("PEC") for the North Urtabulak field. This strategic decision will allow Tethys to refocus capital to other countries of operation, progressing both exploration and production activities.
Dr. David Robson, Executive Chairman and President of Tethys, said: "We are extremely pleased to have received final governmental consent for the acquisition of our interest in these world class assets with significant potential for conventional and non-conventional oil and gas production. This transaction significantly strengthens Tethys' diversified portfolio adding an unconventional oil play to our production and exploration assets in Kazakhstan, and our exciting new frontier exploration acreage in Tajikistan. We now have negotiated partnerships in all three countries of focus; local partners in Georgia, a Chinese private equity fund in Kazakhstan, and CNPC and Total in Tajikistan. Through these diverse partnerships we have spread our risk and brought in significant funding to the Company, whilst maintaining a material interest in each area. Exiting Uzbekistan will allow us to now focus more on these three valuable assets."