Tethys Share Discussion Threads

[hguess16] 25/10/2016 18:09

In response to my questions to Tethys, on a possible conflict of interest !.
Tethys response is as follows:
" Mr Skripka no longer works for Tethys. Any negotiation he is involved in, is on behalf of Olisol or EGG.
Mr May works solely for Tethys and as interim CEO, naturally takes an active part in the negotiations. Mr May has stressed in the past that he has not been paid by Olisol and he does not own shares in Olisol. Mr May continues to have the full backing of the other two board members ( William Wells and Adeola Ogunsemi).
The Board of Directors are leading the negotiations with Olisol. Mr May and CFO, Clive
Oliver are working actively to carry out the Boards instructions. ( For obvious reasons Mr Abramov is not in the room for any discussion relating to the Olisol transaction.)

[temporarily insane] 25/10/2016 17:07

How long does this have to take?

[casual47] 25/10/2016 15:25

IMO the deal should be allowed to lapse, there is no point for TPL to jump through hoops to accommodate Olisol. The deal is no longer fit for purpose. The original idea was to raise ~10 million USD so that they can do drilling over the summer and then use the drill results to raise more funds and add more wells so that they can generate positive cash flow. Now everything has been delayed and it's winter time in Kaz so no drilling likely to be able to happen until spring next year. This means even if the deal completes the money will just be used for G&A and to pay off loans. So come March 2017 we're back to square one....

[casual47] 25/10/2016 15:19

No point doing a placing to raise funds when the funds they are going to give you were already spent months ago.....

The only reason TPL has been spending so much working capital is because of the delays of Olisol.

The initial estimate was for working capital to total around 1.5 million USD. It's more than three times higher...

[hguess16] 25/10/2016 15:04

Olisol paid $6.3m for 63m shares and thought they could take control by using the Working Capital to pay for the 181m shares.
They failed to read or ignored .... " OIL agreed to guarantee the full and prompt payment and/or performance of Olisol's obligations under the Investment Agreement".
ie Pay C$9.787M for 181m shares.
Tethys must insist on adherence to this requirement in the Inv:Ag.

[temporarily insane] 25/10/2016 13:45

Looking forward to all this being sorted.

[hguess16] 25/10/2016 13:19

Someone at Tethys should have done some research on "Very Private" Olisol's ability/credibility, as a serious buyer, with enough cash to do the deal !.
PAM may/could have done the research as a reputable Investment Fund instead of leaving it to Bell and Co!.

[casual47] 25/10/2016 12:23

To think.....Olisol paid 6.3 million USD not so long ago for shares that are now valued at 1.2 million USD.....

If that isn't an incentive for them to make TPL a success....

[casual47] 25/10/2016 11:54

If Olisol is unable to complete the deal then they will try to safeguard their interests, by working with TPL to find a 3rd party to provide the capex or by finding a buyer for TPL with which they could have a good working relationship post-sale.

They will be limited in what they can do to work against TPL as Pope can out-vote them on BOD / general shareholder meetings and it will (1) put their shareholding at risk which is currently already 80% down (their average is 10 US cents) and (2) put their loan at risk.

[hguess16] 25/10/2016 11:40

TI,
On the contrary, Olisol are wide awake and may have made their final move with their
own press release on Oct 12 !. Hope Tethys/PAM can produce their own trump card on 27 Oct !.

[casual47] 24/10/2016 17:39

Tick tock, Olisol

[hguess16] 23/10/2016 23:53

Tethys needs about $35m during 2017 ( Khan SPV 8.5m,AGR Energy 8m, Olisol 7m -WC/OD)and maybe $10m to drill the shallow wells.At $0.10 per share,this could amount to up to $50-60m. With the current TPL price at between 1.75p, and with Olisol offering 3p ( C$0.054), a new partner like NOG might bid 5p or US$0.065 for starters to acquire 100% of TPL. Olisol may be happy to sell out, but PAM may insist on staying on as a minority shareholder. PAM could be a problem !.
A new partner would need to bid in excess of $0.10 per share to get the ball rolling !.

[casual47] 23/10/2016 20:19

Using today's currency rates the deal was effectively 9 pence per share for the then shares in issue. That's the equivalent of 7.4 pence per share for today's shares in issue. It also included up to 20 million USD cash to keep the business running while the deal was being completed. I think TPL's debt was then also around 30 million USD.

This (second revised down) NOG offer basically valued the business at 85m USD or 70m GBP. That was when Tenge and POO were crashing.

And for sure....TPL's assets have not halved in value since....

[hguess16] 23/10/2016 14:34

Casual47,
I agree. Let us hope that a cash positive partner comes in and offers a deal taking into account the real value of Tethys assets !.
I remember NOG offered 1 NOG for 69 TPL shares based on a NOG price of £5 and then the NOG price fell by about 30% shortly after, with the oil price collapse.
Let's see what happens on the 27th.

[casual47] 23/10/2016 12:31

Personally I'd prefer someone to swoop in now rather than Olisol completing and diluting us. It seems pretty clear that Olisol is not the partner we are looking for and they are unable to get us the capex to grow. So we might as well get bought out now and get more for our shares than we may get later.

[hguess16] 23/10/2016 11:41

lfdkmp,
Averaging down is not a cardinal sin as long as there are valid reasons for doing so !. At these levels, one does wonder about Tethys and its future and that it has got involved with an apparent " Cash poor " company who would like to acquire a controlling interest in a public listed company.
I also accept that Olisol may have influence in KAZ that might be useful to Tethys.
I still consider there is value in Tethys based on its real assets and because PAM and its associate ALR are still involved.
If Olisol fails to deliver on 27 Oct,let us be positive and hope that Tethys has a plan B in place to pay off Olisol its working capital debt, keep Olisol as a 15.7%
shareholder and/or more importantly advise that a new credible partner is interested in a " binding " contract to carry on the business of oil and gas exploration.
NOG and AGR Energy might be waiting in the wings and may decide to strike a hard bargain.
I note that the current relative small value trades might indicate that speculators, "shorts" and cash poor PI's may be causing market uncertainty.
The Oil price has recovered from $30 to over $50, and costs have been significantly
reduced at Tethys. These are positives !.

[lfdkmp] 23/10/2016 09:52

Whilst agreeing about the "negative" comment above, an appropriate response would be to comment on the absence of positives for such a long time.

I'm a long term holder who watches and waits. My investment in this share in £ terms, once significant, is now relatively minor. Sadly it is not because I have sold any! - In fact I even committed the cardinal sin of averaging down. How many times have I told myself over the years : "Never again" :-(

[hguess16] 22/10/2016 19:39

TrueN, That's interesting, Thanks.

[truenorthcanuck] 22/10/2016 19:27

A review of the inside filing for Bill Wells does not necessarily mean that he has gotten rid of the 345 thousand plus shares. The code listed is 90 - Change in ownership....this could mean something as simple as moving the shares from one account to a retirement account ....

Found on SEDI - It’s always a good idea to remind insiders that any share movement of previously reported transactions from one account type to another must also be reported on SEDI. For example, when movement from a TFSA to an RRSP or direct holdings to an RRSP account occurs the transactions are required to be filed on SEDI within 5 calendar days and would be reported using the transaction code 90 – Change in the nature of ownership. and T.I. you got to stop being so frigging negative about things...all stock exchanges in the world have individuals who manipulate/short and play mind games with common shareholders.

[hguess16] 22/10/2016 19:25

Casual47, Thanks.
I find the warrants clause rather naive on the part of TPL. I hope the finance people at Tethys learn from their poor negotiating stance and short term time span !.
Cash forecasts are a basic tool for anyone !.