Tethys Petroleum Ltd Tethys Petroleum Press Release: Update On Gas Drilling Program And Extension Of Related Loan

 
TIDMTPL 
 
   March 29, 2017 
 
   Tethys Petroleum Press Release 
 
   (TSX: TPL, LSE: TPL) 
 
   Update on Gas Drilling program and Extension of Related Loan 
 
   GRAND CAYMAN, CAYMAN ISLANDS - Tethys Petroleum Limited ("Tethys" or the 
"Company") today announces that Great Wall Drilling Company was the 
winner of a tender for a ten well shallow gas well drilling program. 
Tethys now has ten (10) days to sign a contract with Great Wall, the 
cost of which drilling is expected to be approximately $6 million USD. 
The Company will have until the end of 2018 fiscal year to pay these 
costs and expects to be able to pay from increased production. Following 
mobilization, the Company hopes to begin drilling on or about May 1, 
2017. Additionally, the Company will work over three existing wells and 
tie in two wells drilled but not tied into production.  This program is 
designed to add twelve (12) or more new wells to existing production. 
 
   The Company also announces the signing of a lease contract with MSI to 
build and install a mini-compressor in Bozoi. Installation is expected 
during the July 2017 time period. This is new technology for Central 
Asia and is intended to enhance gas production prior to the new wells 
being tied in. After new production is tied in, then the mini-compressor 
will be used on older wells to extend the life of wells. 
 
   While the Company will continue to reduce operational costs, our focus 
this year is increasing production of both oil and gas. Additionally, we 
will seek to enhance pricing.  Until these goals can be achieved, Tethys 
will continue to experience a cash flow problem and a need for funding. 
 
   The Company has received approval of the needed lenders to extend the 
$3.5 million loan that is secured by the drilling rigs of the Company by 
18 months to August 2018. Additionally, the Company is in discussions 
with both Khan Energy and AGR Energy to extend the indebtedness owed to 
each of them which is currently due in March and June 2017 respectively. 
 
   About Tethys 
 
   Tethys is focused on oil and gas exploration and production activities 
in Central Asia and the Caspian Region. This highly prolific oil and gas 
area is rapidly developing and Tethys believes that significant 
potential exists in both exploration and in discovered deposits. 
 
   Disclaimer 
 
   Some of the statements in this document are forward-looking. 
Forward-looking statements include statements regarding the intent, 
belief and current expectations of the Company or its officers with 
respect to the potential that exists in both exploration and in 
discovered deposits in Central Asia and the Caspian Region, entering 
into a contract with Great Wall, expected costs of the contract with 
Great Wall, the Company's ability to pay for such contract and the 
ability of the Company to successfully negotiate extensions of loans 
with both Khan Energy and AGR Energy. When used in this document, the 
words "expects," "believes," "anticipates," "plans," "may," "will," 
"should" and similar expressions, and the 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 including risks and uncertainties with respect to 
the potential that exists in both exploration and in discovered deposits 
in Central Asia and entering into contract with Great Wall, expected 
costs of the contract with Great Wall, the Company's ability to pay for 
such contract, the benefits of the ESP and the ability of the Company to 
successfully negotiate extensions of loans with both Khan Energy and AGR 
Energy. 
 
   No part of this announcement constitutes, or shall be taken to 
constitute, an invitation or inducement to invest in the Company or any 
other entity, and shareholders of the Company are cautioned not to place 
undue reliance on the forward-looking statements. Save as required by 
the Listing Rules and applicable law, the Company does not undertake to 
update or change any forward-looking statements to reflect events 
occurring after the date of this announcement. 
 
   Contact Information: 
 
   Tethys Petroleum 
 
   [e-mail] 
 
   www.tethyspetroleum.com 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Tethys Petroleum Limited via Globenewswire 
 
 
  http://www.tethyspetroleum.com/ 
 

(END) Dow Jones Newswires

March 29, 2017 07:13 ET (11:13 GMT)

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