Tethys Share Discussion Threads

[casual47] 13/9/2018 18:02

Serious money is needed to give Tethys a chance. $100millon plus.

If they manage to forward sell O&G output - great. But before they can do that they probably need to drill. Who will fund that?

I doubt they can raise more debt seeing as they have loads of that already.

If a new investor comes in via equity then the Kumar's warrants will look like peanuts.

So...what will it be? Where is the money?

[temporarily insane] 13/9/2018 17:57

The Kumars have kept very quiet.

[casual47] 13/9/2018 17:51

All speculation and there isn't even any glimmer of reason for it.

The Kumars had a huge motivation: getting all the oil for peanuts.

[hguess16] 13/9/2018 17:27

IMO, They will be a bit more proactive for the following reasons.


It is in their interest to make a positive contribution as they have a 20% stake in Tethys which is the largest shareholding.

[hguess16] 13/9/2018 16:47

Even without the warrants, NI would be in a strong position at Board meetings as he would hold 20% and together with
Kumar's 14%, could influence decisions.
In the past Wells seems to have made the final call with the support of Sjoberg and Ogunsemi. Now he will have
Kumar and Amirkhanov to contend with.
If, as you have found out,that KTgas is involved with Amirkhanov, Wells will no longer be in control at Board level with his 13.8%.
Ken May, Sam Barrows and now Sjoberg seem to have been picked by Wells.
My guess is that the new CEO decision would be influenced by the KZ investors
ie NI and Kumar.
As regards creditors, there are two other major creditors in addition to
PAM and one is KZ based and would have been consulted by NI as part of their due diligence.
So IMO, PAM's creditor influence is not
that strong !.
Wells is not likely to have his own way from now on. Decisions will require the approval of KZ locals on the board.

[casual47] 13/9/2018 15:43

Before those warrants can be turned into shares, assuming it would give their holder more than 20%, there needs to be a vote on it by shareholders who are "disinterested", I.e. nothing to do with him. If they vote NO then he can't convert and instead the company will need to pay him money in exchange.

[temporarily insane] 13/9/2018 15:40

casual47............any chance of a simplified version of the above?

[casual47] 13/9/2018 15:10

Also:

The Warrants contain a restriction on exercise to the effect that, unless and until approval of the disinterested shareholders of the Corporation is obtained, no Warrants may be exercised by Kumar on a date where the result of such exercise would be the issuance of Ordinary Shares that, together with the Ordinary Shares already owned by Kumar on such date, would be in excess of 20% of the number of issued and outstanding Ordinary Shares of the Corporation on such date.

[casual47] 13/9/2018 15:06

Wells is one of the main creditors.(convertible at a penny or so?). That doesn't make him weak.

[hguess16] 13/9/2018 15:01

While we await news of the commencement of share trading it is interesting to note
that,following this latest equity dilution, Wells (PAM) will end up holding 13.8% of Tethys shares while the New Investor and Kumar will hold 34%. Add Olisol with 9.9% to the mix and the KZ locals will hold 43.9%.
That makes Wells position as chairman, extremely weak !.
If Kumar decides to exercise the 192m warrants at 3.1 cents before Nov 2019, it would be game set and match to KZ.
i wonder if there is a role for Sjoberg and Ogunsemi in this new set-up ?.

Based on the last three years of poor performance by the BOD, is the future for the long suffering PI's, any better or worse ?.

[1399peter] 13/9/2018 12:22

They will probably need a while to work on that, I mean after all there's no great hurry Zzzzzzzzzz

Warrants can be exercised on or before Oct 6th, so is that a rough indication as to when the shares will start to trade again.

[temporarily insane] 11/9/2018 17:16

Just tried buying a few, failed to go through, so I guess the NEX are still dragging their heels a bit to act on lifting the cease trade.

[hguess16] 11/9/2018 08:19

Devonlad,
Re: Your comment on the contract with Olisol until end 2018 !.
It was not an exclusive contract, which was confirmed by the KZ Supreme Court ruling.
The Tethys BOD simply failed to focus on its primary purpose of drilling for O&G.
Nostrum raised $1 billion to drill and refine O&G.

[hguess16] 11/9/2018 08:02

Let's be realistic !.
When Wells took over, I thought this was the start of a new dawn.
It has been a nightmare !.
We have witnessed the drilling of the wrong wells, ie the wells owned by the shareholders rather than the oil and gas wells in KZ.The equity wells of Tethys have been drained while the O&G
wells have barely been touched.
We can only hope that the "apprentice "
BOD, advised by the New Investors,
can help recoup some of the losses, by pointing the drill at the O&G wells target !.

[casual47] 11/9/2018 00:10

That's quite a ridiculous statement. Perhaps Stockhouse might be more your audience...

If you used 2008 as your benchmark to invest in tethys then you should prepare yourself for lots more disappointment as you clearly haven't been paying attention.

I expect Tethys will be below 2 pence well into 2019.

*Price of oil has collapsed since 2008
*dilution by more than factor of 10 since 2008 (will be even higher if outstanding warrants ever get triggered, I expect 1 billion shares in issue before too long. It was 45million or so in 2008.....)
*high debt
*barely sufficient funds to stay out of administration
*high capex needs to even get started, let alone get up to export volumes

Recovery, if TPL doesn't succumb to administration, will be slow and probably painful for us private investors.

[islandbruin] 10/9/2018 23:29

I would expect a price in the high teens by the end of the year. Remember we had a market cap of 160 million in 2008.

[hguess16] 10/9/2018 13:53

Thanks, That is good news !.
Your comment on Olisol may be valid, but I do not think Tethys kept output down because of.
looks more like Tethys simply lacked the cash to increase output.
Yes, the 50% AOT looks like the only asset they have in addition to the 63m shares and
$5.8m W/C lent to Tethys.
Having looked at the warrants issued to the Kumars, if they exercise before Nov 2109,
they could end up with the largest number of shares unless discussions are in place to
ensure that NI holds the major share.
In all this, we poor PI's are left with less value with all this dilution.

[casual47] 10/9/2018 12:53

Tethys Petroleum: Cease Trade Order Revoked
09/10/2018 | 01:30 pm
Grand Cayman, Cayman Islands--(Newsfile Corp. - September 10, 2018) - Tethys Petroleum Limited (TSXV: TPL.H) ("Tethys" or the "Company") today announced that on September 7, 2018 the Company's principal regulator, the Alberta Securities Commission, issued a Revocation Order in respect of its previously issued Cease Trade Order ("CTO") which has been in place since June 29, 2018. This follows Tethys bringing its filings with Canadian regulatory authorities up to date. Trading in Tethys ordinary shares is expected to recommence shortly.

[devonlad] 10/9/2018 12:34

A small point, from memory, the off take agreement with Olisol ends this December. Given that Olisol have tried and failed to take TPL over or down, depends on how you see it, it may be the case that Tpl has been limiting production until that agreement ends. They certainly wouldn't have wanted to increase production and line Olisol's pockets that's for sure. I also think that the OT is in fact Olisol's only asset, apart from their shares in TPL so they are effectively out of business when the agreement ends, they will have effectively lost the war.

[hguess16] 08/9/2018 22:13

I have just looked at the warrants granted to the Kumars amounting to 96.15m each
with a total of 192.3m at an exercise price of 3.1 cents which have have exercise period of three years ending in Nov 2019.
We have not been informed by the Tethys BOD if these warrants have been cancelled as part of the new offer to the NI.
If the warrants to the Kumars are still exerciseable before Nov 2019, the Tethys shares will be further diluted by an additional 192.3m increasing the 635m shares to a total of 827m shares.
Perhaps the BOD should confirm whether the total number of shares would amount to
827m shares by Nov 2019 if the Kumars exercise the warrants.