Tethys Share Discussion Threads

[casual47] 29/10/2016 15:03

The thing is: There are several other parties to which TPL is indebted -- AGR (or whoever took over their loan), PAM/ALR, the Caymans lender, the Kaz bank.....

These guys will want to have some say if the assets are up for grabs.

[casual47] 29/10/2016 15:01

The only way I can make sense of this sorry business is that either:

Olisol think they can steal the assets through corruption

--or--

they are a scorned partner trying to do maximum damage in order to make any 3rd party think twice about stepping in, in the hope that they will walk away and then Olisol can come with a derisory offer or some other form of shenanigans.

[1399peter] 29/10/2016 14:53

It would be nice to think that Olisol have put this out because they know Tethy's have done a deal or deals with others that cut them out of any future business. I guess we will soon find out.

[hguess16] 29/10/2016 14:36

First It was EGG, now it Is Intergas !. what next from Olisol; who must be bitter and vindictive ?.
I am hoping that Tethys and PAM were fully aware of the KAZ environment and Olisol's tactics prior to declaring that Olisol was in breach of the Inv Ag:.Tethys has been operating in KAZ for many years and should understand the KAZ court procedures!.
If Tethys goes under ?.
Olisol loses $6.3m in shares, It will have to recover $5.7m through KAZ court regulations and then go to arbitration to win. It also loses its contractual income for current distribution services provided to Tethys.Is Olisol strong enough to take this hit or is it a bluff !.
PAM loses its 19% share value ( Big value !) in Tethys and ALR will have to resort to the Court to recover its debt. Will PAM walk away ?. I do not think so !.
Will Abramov now resign from Tethys or will he be requested to resign following the
Olisol press release ?.
Will Tethys issue a press release next week to effectively counter these Olisol default/ termination claims ?. Yes, I hope they do; constructively.
A new strategic partner will have to take on the responsibility for Tethys debt,regulatory requirements and associated obstacles in the KAZ courts, and the fallout from the Tethys/Olisol troubled relationship. Can/Will someone like NOG
step in to fill the void ?. Yes, if PAM is willing to relinquish major control of the company.
Current net asset value of Tethys may be approx $40m ( $80m less debts of 40m) subject to KAZ and Georgia licences being renewed with a new partner on board.
This saga is likely to go on for at least a few months !. Unless Tethys has already
lined up a new credible partner to come on board soon !.

[casual47] 29/10/2016 14:33

Seroserio -- Don't ask me or anyone on these forums. Nobody knows.

To get a rough idea of the SP, deduct the 35-odd million USD debts from the sale price and divide by 400 million to get the price per share in USD.

So, roughly, if they offer us $45 million USD, that would be 2.5 US cents or 2 pence.

If the sales goes through at $50 million USD it's 3 pence.

Previous valuations went from around 85 million USD to over $150 million.

[seroserio] 29/10/2016 14:04

casual47 29 Oct '16 - 11:30 - 11941 of 11958 0 0
Unless TPL can pull a rabbit out the hat the only option seems a sale of the company.

Assuming no rabbit (probability would suggest so)then 2 questions arise.
1. Why would anyone buy us? Just wait til we disintergrate.
2. If someone does, what sp?

[temporarily insane] 29/10/2016 13:28

"Olisol has been advised by Intergas that, in the current circumstances, its decision to terminate the Gas Purchase Agreement is irrevocable. Accordingly, on October 27, 2016, Olisol advised Tethys, in writing, that the cancellation of the Gas Purchase Agreement constituted a material adverse change for purposes of the Investment Agreement giving rise to a right of termination in favour of Olisol. Olisol has further advised Tethys that it was exercising its right to terminate the Investment Agreement as of such date."



ALL JUST SEEMS TOO ORGANISED TO ME.


Note the comment "in the current circumstances"!!!!!!!!!!!!!!!

[temporarily insane] 29/10/2016 13:13

casual47, thank you.

Now if we go full circle back to the RNS dated 20 October 2016, why do we think Tethys did this?


"October 18, 2016, Intergas Central Asia JSC ("Intergas") ceased purchasing natural gas from Tethys' subsidiary, TethysAralGas LLP ("TAG"), and on October 21, 2016, Intergas formally terminated its natural gas purchase agreement"


Why would they stop purchasing natural gas when its sold on for a profit unless Olisol have been causing trouble in the background????

[casual47] 29/10/2016 13:03

TI, all of this happened weeks/days ago, so yes.

Tethys, unlike Olisol, is subject to the rules (and applicable laws) of a listed company and has a duty to inform the market of anything that materially affects the company.

[temporarily insane] 29/10/2016 13:00

Tethys petroleum, Bill Wells/Pope and Kenneth May must be aware of all this going on, yes?

[lfdkmp] 29/10/2016 12:57

I think we are converging.

[casual47] 29/10/2016 12:50

If you assume a corrupt judge, then yes, anything can happen.

But just on the strength of Kaz law, no, it cannot happen.

[lfdkmp] 29/10/2016 12:48

" The past is a foreign country. They do things differently there. "

So is Kazakhstan.

[lfdkmp] 29/10/2016 12:45

I wonder if the claim would have been thrown out if Olisol weren't (then) in TPL corner?

[casual47] 29/10/2016 12:43

See what happened with the claim of the guy who wanted TPL to pay back the AGR loan. It got thrown out, both initially and on appeal. The jurisdiction there was the International Court of Arbitration in London and the agreement was also with TPL, not the subsidiaries.

[lfdkmp] 29/10/2016 12:40

Agreements may be subject to courts in Canada and/or England.
Regrettably the assets are In Kazakhstan. I'm starting not to assume similar jurisprudence in Kazakhstan. I fear under that jurisdiction, Oilsol will be able to do a lot more than huff and puff.
Have we not already been told that Kaz bank accounts have been frozen?

Your comment about Kaz bailiffs may be timely if not accurate.

[temporarily insane] 29/10/2016 12:35

I think its time Kenneth May got promoted and the Kaz guy handed his notice.

[casual47] 29/10/2016 12:30

Olisol can huff and puff all they like, if they claim they have a case to demand their money back because of an alleged Material Adverse Change then they need to take it to court in England. They can't just send the Kaz bailiffs out. Moreover, the money was given to and the agreement is with TPL, not with its Kaz subsidiaries.

[hguess16] 29/10/2016 12:28

It seems that Olisol are determined to cause as much damage as possible to Tethys having failed to walk away with 42% of Tethys at a knockdown price of C$0.054 cents per share using the W/C route !.
Olisol must have been aware of the Intergas/TAG contract and then decided to trigger
an event of default due to their failure to conclude the deal.
There are likely to be more allegations by Olisol in order to undermine Tethys !.
Let us see how Tethys responds next week to these allegations by Olisol

[casual47] 29/10/2016 12:25

The "Amendment Agreement" from march 2016 is governed by the law of England and Wales and both parties agreed that the courts of England and Wales shall have exclusive jurisdiction over any dispute and claim arising out of or in connection with the agreement

[casual47] 29/10/2016 12:20

1. Olisol has fudged the truth in their market updates before. Remember, they are a private company and are not bound by the same rules as a listed company, they can say pretty much what they want.

2. Any dispute on the Investment Agreement must be taken to a Canadian court.

"The Parties agree that this Agreement shall be governed by and construed in accordance with the laws of the Province of Alberta and the federal laws of Canada applicable therein. Each Party irrevocably and unconditionally consents to submit to the jurisdiction of the Court of Queen’s Bench in the City of Calgary in the Province of Alberta for any actions, suits or proceedings arising out of or relating to this Agreement and the Transaction (and agrees not to commence any action, suit or proceeding relating thereto except in such courts), and further agrees that service of any process, summons, notice or document by registered mail to such Party's address set forth herein shall be effective service of process for any action, suit or proceeding brought against such Party in any such court. The Parties hereby irrevocably and unconditionally waive any objection to the laying of venue of action, suit or proceeding arising out of this Agreement in the Court of Queen’s Bench in the City of Calgary, in the Province of Alberta and hereby further irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum."

[temporarily insane] 29/10/2016 12:07

Why would Intergas Central Asia JSC stop purchasing gas from Tethys unless Olisol has had a word in their ear to suggest terminating the agreement to cause pain to Tethys so Olisol can get its way?


Hopefully the courts will see this on the 1 November.

[ratfan] 29/10/2016 11:55

what could they realistically sell the company for nowadays?!

[casual47] 29/10/2016 11:30

TI, it's clear Olisol have engineered all of this. They are a bunch of crooks.

Unless TPL can pull a rabbit out the hat the only option seems a sale of the company.

[temporarily insane] 29/10/2016 11:08

October 28, 2016 17:41 ET

Olisol Provides Update on Terminated Transaction With Tethys Petroleum Limited
HONG KONG, CHINA--(Marketwired - Oct. 28, 2016) - OLISOL Petroleum Limited (hereinafter "Olisol" or the "Company") is providing an update with respect to the transaction with Tethys Petroleum Limited ("Tethys") previously announced by Tethys.

Cancellation of Gas Purchase Agreement
Olisol has been advised that on October 18, 2016, Intergas Central Asia JSC ("Intergas") ceased purchasing natural gas from Tethys' subsidiary, TethysAralGas LLP ("TAG"), and on October 21, 2016, Intergas formally terminated its natural gas purchase agreement (#057-01-16R dated March 18, 2016) with TAG (the "Gas Purchase Agreement"). Intergas is an indirect subsidiary of KazMunaiGas and the operator of the gas transportation system in Kazakhstan. Olisol believes that Tethys derives a significant portion of its operating revenue from sales under the cancelled Gas Purchase Agreement and will not be readily able to secure other purchasers without access to Intergas' pipeline network. Intergas is the only entity authorized under Kazakhstan law to purchase natural gas produced in that country. Accordingly, Olisol believes that the termination of the Gas Purchase Agreement represents a substantial and material curtailment of Tethys' business.

Event of Default Under the Facility Agreement
In light of Olisol's belief that the cancellation of the Gas Purchase Agreement constitutes a substantial curtailment of Tethys' business and will have a material and negative effect on its operating revenue, Olisol exercised its right to declare an event of default under the Facility Agreement between Tethys and Olisol dated November 19, 2015 (the "Facility Agreement") through delivery of a notice to Tethys on October 24, 2016. As a result, approximately US$5.7 million of working capital advances made by Olisol to Tethys under the Facility Agreement and the Amended and Restated Investment Agreement between Olisol, Olisol Investment Limited and Tethys, dated as of April 28, 2016 (the "Investment Agreement"), together with interest accrued thereon, became immediately due and payable. Olisol has demanded immediate repayment of such amounts and intends commence a collection action to enforce repayment if repayment is not made forthwith.

Termination of Investment Agreement
Olisol has been advised by Intergas that, in the current circumstances, its decision to terminate the Gas Purchase Agreement is irrevocable. Accordingly, on October 27, 2016, Olisol advised Tethys, in writing, that the cancellation of the Gas Purchase Agreement constituted a material adverse change for purposes of the Investment Agreement giving rise to a right of termination in favour of Olisol. Olisol has further advised Tethys that it was exercising its right to terminate the Investment Agreement as of such date.

About Olisol
Olisol is headquartered in Almaty, Kazakhstan and its subsidiaries and affiliates have investments in energy and oil and gas operations in the Russian Federation and Kazakhstan. Olisol has worked with Tethys in Kazakhstan for over seven years, is joint owner of the Aral Oil Terminal with Tethys and has its own fleet of special oil trucks involved in oil transportation from Tethys' oil fields. Olisol, through its affiliates, is engaged in railroad transportation, processing of oil, storage and sale of oil products.