Olisol Investment Group

Olisol Investment Group

October 02, 2015 19:56 ET

Olisol Investment Group Announces Proposal to Invest in Tethys Petroleum Limited

HONG KONG, PEOPLE'S REPUBLIC OF CHINA--(Marketwired - Oct. 2, 2015) - Olisol Investment Group ("Olisol") announces that on October 2, 2015, it submitted a non-binding proposal (the "Offer") to Tethys Petroleum Limited ("Tethys") in connection with the strategic review process announced by Tethys on May 1, 2016.

The Offer contemplates an immediate equity investment by Olisol of CDN $8 million by way of share subscription at CDN $0.16 per common share of Tethys (each, a "Share"). Upon completion of the transactions contemplated in the Offer (collectively, the "Transaction"), an additional CDN $24 million of new equity will be made available to Tethys.

Further, the Transaction will afford existing shareholders of Tethys the opportunity to sell a portion of the Shares they currently hold at CDN $0.16 per Share, as well as the ability to invest in Tethys on the same terms as Olisol.

"We are excited by the prospect of investing in Tethys," said Alexander Skripka, a director of Olisol. "Our proposal provides additional equity to Tethys on attractive terms. It also allows shareholders to participate, either by investing alongside us or by effecting a partial exit. We look forward to entering into discussions with Tethys at the earliest possible moment. We have worked alongside Tethys in Kazakhstan before and given our experience investing in the region, we are very familiar with both the obstacles Tethys faces and the opportunities and the opportunities available to it."

Olisol has secured a US $51 million credit facility and has cash on hand of US $20 million which are available to fund its obligations under the Transaction and to make further investments into Tethys, as either debt or equity, should additional capital be required and the parties agree to the terms of such further investment.

Olisol believes that a definitive agreement could be reached in two weeks at which point the initial CDN $8 million would be advanced with the balance of the Transaction to be completed in six to eight weeks thereafter.

Shareholders of Tethys are advised that there can be no assurance that the Offer will be accepted or that the Transaction will be consummated. If successful, the Offer and the Transaction will result in a significant influx of capital to Tethys, as set forth above. The Offer is not subject to either a financing condition or a due diligence condition.

About Olisol

Olisol is a private company incorporated under the laws of Cyprus and is headquartered in Almaty, Kazakhstan. Olisol has been investing in the oil & gas sector in the Russian Federation and Kazakhstan since 2002. Olisol's goal is to establish a vertically integrated oil & gas conglomerate. Olisol has worked in partnership with Tethys since 2009 in connection with the operation of the Aral Oil Terminal, a facility used primarily for the storage and loading of crude oil, the majority of which is produced in the Akkulka oil field. In addition to its interests in the Aral Oil Terminal, Olisol also owns the railway company responsible for the transportation of crude oil from the Aral Oil Terminal to refineries located in Shalkar, Kazakhstan. As such, Olisol is very familiar with Tethys and its assets and the environment in which it operates.

Contact Information

  • Kenneth J. May
    Director of Business Development
    OLISOL Petroleum