Tethys Petroleum Press Release: Par23 Aug 2016 16:10
GRAND CAYMAN, CAYMAN ISLANDS--(Marketwired - Aug. 23, 2016) - Tethys Petroleum Limited (TSX:TPL)(LSE:TPL) ("Tethys Petroleum" or the "Company") today announces a corporate update.
Par Value Reduction
The Grand Court in the Cayman Islands has approved a motion by Tethys Petroleum to reduce the par value of the Company's ordinary shares to USD 0.01. Accordingly, the Company is now in a position to give effect to the reduction in the par value of its ordinary shares by making the necessary filing with the Cayman Islands Registrar of Companies. This filing is the last remaining hurdle before the Olisol private placement transaction (announced on April 29, 2016) can complete. The Company expects the filing to be made and the private placement transaction completed by September 2, 2016.
Cost Optimisation
The Board of Directors has adopted a new cost optimisation programme, that once fully implemented, should save the company an estimated USD 2.5 million a year. The programme follows an extensive review into costs and operations that was started after the Company's May 31, 2016 Annual General and Special Shareholders Meeting.
Other Items
As referred to in our Q2, 2016 financial statements the assets of one of the Company's Kazakhstan subsidiaries remain frozen after the first Court hearing of a claim brought against the Company by a private individual in relation to the USD 7.5 million debenture due June 30, 2017 originally issued to AGR. The Court is scheduled to hold further hearings on Tuesday, August 23. Tethys expects a release of its assets and hopes for dismissal of all claims. Tethys has been working tirelessly to resolve what it believes is an unfounded claim.
Management comments
Kenneth May, Interim Chief Executive Officer says: "The Company has been through a challenging time. Working with Olisol, the Company should be able to boost profitability by restarting the shallow gas drilling programme to increase production, while at the same time cutting costs and increasing efficiency."