Tethys Petroleum Limited
TSX : TPL
LSE : TPL

Tethys Petroleum Limited

July 14, 2015 02:00 ET

Update on Approach to Board of Tethys Petroleum Limited Regarding a Possible Offer

GRAND CAYMAN, CAYMAN ISLANDS--(Marketwired - July 14, 2015) -

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Tethys Petroleum Limited ("Tethys" or the "Company")(TSX:TPL)(LSE:TPL) refers to its announcement dated July 13, 2015 confirming the approach made earlier that day by Nostrum Oil & Gas PLC ("Nostrum") to the board of directors of Tethys (the "Board") regarding a possible offer for the entire issued share capital of Tethys (the "Possible Offer").

The Possible Offer would provide for a price of C$0.2185 per Tethys share, whether in cash or Nostrum shares or a combination of both, as determined by Nostrum. The Possible Offer is subject to various conditions, including, amongst other things, the completion of customary due diligence (satisfactory to Nostrum) including a site visit and is subject to approval from the board of directors of Nostrum.

The Board and management of Tethys believe that the current strategic collaboration with AGR Energy and US$47.7 million financing (the "AGR Placing") represents a transformational deal for Tethys that has the potential to add significant value for shareholders of Tethys. In addition, the Company is currently in a period of exclusivity with AGR Energy which is active until closing of the AGR Placing or, if earlier, termination of the subscription agreement with AGR Energy, all as previously announced on 1 July 2015.

Accordingly, having given due consideration to the Possible Offer, the Board has resolved not to pursue or engage in discussions with Nostrum.

Reference is made to the separate announcement of the Company today providing an update on the AGR Placing and the agreement of Pope Asset Management, LLC to subscribe for ordinary shares in the Company in connection therewith.

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

This press release contains "forward-looking information". Such forward-looking statements reflect our current views with respect to future events, including with respect to completion of the AGR Placing. The forward-looking statements are based on the following assumptions: that the AGR Placing will be completed, that all related conditions will be fulfilled and that all related shareholder and regulatory approvals and consents will be obtained by the November 1, 2015 contractual long stop date. These forward-looking statements are subject to a number of risks and uncertainties, including the risk that the AGR Placing the fulfilment of all related conditions and/or the receipt of shareholder and regulatory approvals and consents will not be completed or obtained by the November 1, 2015 contractual long stop date.

Please also refer to the Company's Annual Information Form for the year ended December 31, 2014 for a description of risks and uncertainties relevant to the Company's business, including its exploration activities. The "forward looking statements" contained herein speak only as of the date of this press release and, unless required by applicable law, the Company undertakes no obligation to publicly update or revise such information, whether as a result of new information, future events or otherwise.

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