Tethys Share Discussion Threads

[1399peter] 16/3/2017 19:22

hguess16
16 Mar '17 - 18:40 - 13846 of 13851

First things first.Let Tethys (with PAM and the Kumars) sort out KAZ and then they may consider the Taj deal/dispute resolution.

Has to be said Tethys have done all of the bloody work so far on Bokhtar PSC with the data collection......Not sure what the other two have actually achieved since they got their 30%, clearly nothing according to Taj Gov.

[casual47] 16/3/2017 18:51

I think there will be a counter RNS. This is pretty much a copy paste of their previous news release where they claimed TPL had lost the gas contract, except now they are claiming TPL is unable to sell its oil - note the appeal/warning at the end to all Kaz oil processing companies to not touch any oil from TPL.

"The Company hereby informs the oil refineries of the Republic of Kazakhstan that according to the contract signed in 2012, until December 31st, 2018 the oil produced by TethysAralGas shall be supplied only to Eurasia GAS Group."

[1399peter] 16/3/2017 18:45

Casual......Ok Get you now,




has to be said the news from Tethys is poor at best.

"HOW'S THE ARBITRATION COMING ON TETHYS MANAGEMENT"

[dorset64] 16/3/2017 18:43

yep, sorry will edit my post casual.

[casual47] 16/3/2017 18:42

D64 - December 2018....18 months.....That's not something to just bridge....

[dorset64] 16/3/2017 18:41

Casual, Tethys are a listed entity and are currently going through the courts in relation to this dispute. I personally feel they should not be quoting on it in public in fear of upsetting the court process.

[hguess16] 16/3/2017 18:40

Casual,
Fact - The Taj Govt demanded that the three parties ( Tethys, CNPC and Total ) should
hand back 25% of the oil and gas fields to the Taj Govt as they had failed to deliver any tangible results in the 7 years of operations.
Fact - Tethys has counter sued CNPC and Total for $10.1m in response to the claim of $9m plus costs by CNPC and Total
Fact- Tethys, as part of Kulob, hold 28.333% of Bokhtar oil and gas fields

The International Court of Arbitration has yet to issue its ruling !.

First things first.Let Tethys (with PAM and the Kumars) sort out KAZ and then they may consider the Taj deal/dispute resolution.

[dorset64] 16/3/2017 18:39

So, the contract to supply oil to Olisol/Eurasia Group runs out in circa 18 months. If they, Olisol want anything out of these negotiations then surely even they must realise a resolution is the only way forward for them.

If they carry on as they are, and with Kumars/money men on board, TPL could effectively shut down operations for the next 9 months and then start up once again.

Should they pursue their actions through the courts, then with every every week, every month that passes Olisol's hand is weakened even further. All what I write above is only relevant, of course, if there is enough money around to tide TPL for the next 9 months IF a resolution cannot be found.

I'm hearing a few things and from what I have heard, Olisols hand is becoming very very weak.

[casual47] 16/3/2017 18:38

If they don't respond it means we can take what Olisol posted as the truth?

If it is not the truth then TPL has a duty to correct it as it may skew market.

[dorset64] 16/3/2017 18:32

This is the actual version sent to Tethys by Olisol today. I am unsure as to whether TPL are or should respond to it at all at present.
======================================================
HONG KONG, March 15, 2017 (GLOBE NEWSWIRE) -- OLISOL Petroleum Limited ("Olisol" or the "Company") today announces that at the moment TethysAralGas, a subsidiary of Tethys Petroleum (which OLISOL owns 15.76% shares of) in Kazakhstan, is violating binding oil delivery terms of the oil delivery contract № 05-05-1814 dated January 1st, 2012 signed with Eurasia GAS Group. This contract provides for obligatory oil deliveries from TethysAralGas exclusively for Eurasia GAS Group up to December 31st, 2018. In violation of its obligations with its letter #01-09-01/08 dated January 10th, 2017 TethysAralGas has informed Eurasia GAS Group that at Akkulka Mine the oil production is being stopped due to the execution of necessary maintenance. TethysAralGas stated that it would additionally notify on the end date for these operations. Coincidently TethysAralGas has entered the oil supply agreement with Prax-AK. By doing this, TethysAralGas is selling to Prax-AK the oil paid for by Eurasia GAS Group as early as in 2012. Until recently, the oil received by Prax-AK was being transported to the State Oil Refinery – Atyrau Refinery.

According to the current Ruling of Economic Court of Almaty dated January 26th, 2017 on seizure of property of TethysAralGas and corresponding measures applied by the judicial enforcement agent, starting from March 6th, 2017 Atyrau Refinery has cancelled the acceptance of oil supplied from TethysAralGas. In addition, the export of petroleum products obtained from TethysAralGas’ oil was stopped.

On the 9th of March, 2017 the court has passed a judgment and rejected the complaint laid by TethysAralGas. Also, the ruling dated January 26th, 2017 was left unchanged. Thus, at the moment the movable and immovable assets of TethysAralGas are under arrest and TethysAralGas is prohibited to make actions aimed at alienation of subsoil usage rights at the mines.

The Company hereby informs the oil refineries of the Republic of Kazakhstan that according to the contract signed in 2012, until December 31st, 2018 the oil produced by TethysAralGas shall be supplied only to Eurasia GAS Group.

About OLISOL
As of November 30th, 2016 OLISOL Company owned 15.76% of shares of Tethys Petroleum and was to increase its share in Tethys up to 42%. On November 30th, 2016 the Board of Directors of Tethys Petroleum without having the permission for additional issue of shares from the relevant authority, Ministry of Energy of the Republic of Kazakhstan, has initiated the issue of shares for Prax PTE LTD and Jin Guang LTD and by doing this, has illegally diluted the shares of OLISOL in Tethys.

Due to violations made by TethysAralGas in oil deliveries for Eurasia GAS Group, Eurasia GAS Group has claimed the return of funds paid for oil delivery and compensation of losses from TethysAralGas in the amount of $22, 988, 731. Also, OLISOL demands the return of working capital provided with interest accrued in the amount of $5, 916, 091.95. The return of the working capital was supposed to happen on the 31st of August, 2016.

OLISOL and its subsidiaries and affiliates have investments in energy and oil & gas operations in Russia and Kazakhstan. For more than 7 years the company has been collaborating with Tethys in Kazakhstan. Together with Tethys the company owns Aral Oil Terminal and has its own oil truck fleet intended for automobile oil transportation from Tethys’ mines. OLISOL has a workforce of highly skilled specialists in oil & gas area with its headquarters in Almaty, Kazakhstan.

Disclaimer
Some of the statements in this press release are forward-looking. Forward-looking statements include statements regarding the intent, belief and current expectations of OLISOL or its officers. When used in this document, the words "expects," "believes," "belief," "anticipates," "intends," "plans," "may," "will," "should" and similar expressions, and the derivatives and negatives thereof, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to risks and uncertainties that could cause actual outcomes to differ materially from those suggested by any such statements.

No part of this announcement constitutes, or shall be taken to constitute, an invitation or inducement to invest in OLISOL, Tethys or any other entity, and shareholders of Tethys are cautioned not to place undue reliance on the forward-looking statements. Save as required by the Listing Rules and applicable law, OLISOL does not undertake to update or change any forward-looking statements to reflect events occurring after the date of this announcement.

Authorized Point of Contact:

Darya Klimova
Authorized Representative,
OLISOL Petroleum Limited
Tel.: [phone]
[e-mail]

[casual47] 16/3/2017 18:15

Peter, no, i am saying they still have the assets now. At least until the arbitration concludes.

[casual47] 16/3/2017 18:13

Hguess, the fact that they don't have money for Taj is obvious, TPL hasn't paid for their share of costs for a year and half. Kaz assets will take tens of millions. Taj assets will take hundreds.

If Kumars were keen on Taj i think we would have seen a settlement of the arbitration.

[1399peter] 16/3/2017 18:09

Casual

You've lost me there. If Kulob get chucked out of the PSC are you saying that Tethys still retain the assets

[hguess16] 16/3/2017 18:03

Casual,
You say " TPL has no money to get started in Taj and will have no money anytime soon".
" The Kumars aren't interested in Taj either"

Is this what you know as a fact or are you making it up ?.

Your mood of pessimism seems to be on the rise !.

[casual47] 16/3/2017 17:53

Peter, as long as they have their share of the assets in Taj it's not misleading.

Remember: Sinohan offered 75 million USD (plus bonus funds) for 50% of the Tethys Aral Gas company, TPL's subsidiary in Kaz.

TPL has only ever been valued share price wise in terms of its Kaz assets.

[temporarily insane] 16/3/2017 17:45

Still waiting.

[1399peter] 16/3/2017 17:02

Casual, That would be a significant loss and if it is the case they will need to update their website and reduce the 11billion BOE by a large percentage. Could be considered misleading otherwise.

[casual47] 16/3/2017 16:48

Peter, I think Taj can be written off as zero.

We may get something back from it but worst case TPL exits without paying any penalties (by letting the subsidiary go into admin). Best case TPL exits and gets some money from the other partners for doing so.

TPL has no money to get started in Taj and will have no money anytime soon.

The Kumars aren't interested in Taj either.

[1399peter] 16/3/2017 16:11

It would be nice to hear something about the arbitration with our so called partners in Taj. After all its the "jewel in crown" according to the Tethys website.

Edit: It would be nice to hear something/anything firsthand for a change

[hguess16] 16/3/2017 15:32

Casual,
The Kumars' do see a way out of the problem as you told us that Prax-AK were buying TAG oil.
We should be wary of any of Olisol's press releases as they are trying to destabilse
Tethys ops since they have been frozen out of Tethys by the entry of the Kumars'.
The $700k input and the warrants take-up were clearly a move to freeze out Olisol and consequently the jilted lover spreads rumours in the locality.
Olisol's press releases provide enough evidence that they are in a hole created by themselves and are desperately trying to get out.
Seems a lost cause !.
I have little doubt that the Kumars' are in for the long haul as they see a very good
deal for themselves !.

[casual47] 16/3/2017 14:09

Hguess, while the holding of the kumars is significant, to date their total investment is only $700K each.

If the Kumars can see a way out of the current problems then they will stay as the payback is significant.

But how much are they willing to put up with seeing as the total skin in the game for them is only 700K each?

E.g. if TPL is indeed not able to sell its oil will they pump more money into TPL as a stop gap?

[hguess16] 16/3/2017 13:40

Sale of Tethys now ?. Not a chance !!.
Now that Tethys is majority owned and controlled by PAM and the Kumars (over 60% ), talk of a sale to a third party is highly unlikely and pretty pointless !.
As long as the oil price stays at or near $50 pbl, and the Tethys oil wells and reserves are protected, I would think that the current short term loans rescheduling/repayment issues could be solved.
As regards whether 5 US cents is the price of Tethys, based on its assets, it could be regarded that the Kumars who are paying an average cost of 2.4 US cents incl the Warrants, must have considered that the true value is significantly higher and with their active support and involvement in helping Tethys to grow, they expect to at least double or treble the return of their investment in the medium term.
Let's not forget that PAM with an equivalent proportion of shares to the Kumars' have invested far more than 25 US cents in Tethys and it would be incredible to even consider a sale of Tethys at present.
As regards Olisol, their inaccurate press statements are a reflection of their desperation and inability to negotiate with Tethys management and the fact that soon they will have to contend with the legal proceedings relating to the breach of contract re the IA and their illegal acts against TAG in KAZ.
I bet Tethys does not wish to enter into a pointless pseudo press war with Olisol and would rather look forward to the start of legal proceedings in Alberta !.

[temporarily insane] 16/3/2017 12:44

All this is really taking its time.

[casual47] 16/3/2017 12:18

Ben, only a company with significant influence in Kaz would even begin to think about buying the assets. With the warring factions of Olisol versus Salzhanov/Kumars it seems like a pit of snakes.

When POO was $100+ the Sinohan deal valued TAG (just the Kaz assets) at $150million.

A lot has changed since then of course: POO is struggling to stay at $50, the tenge devaluated, TPL added lots of debt of which most is due this year(with status of $8 million Cayman loan that matured in January unknown), TPL is in lots of legal entanglements and the Kaz legal system seems a stinking morass.

I think TPL should probably just try to slog on the current path.