Tethys Petroleum Update Regarding Various Legal Proceedings
August 10 2017 - 7:25AM
Tethys Petroleum Limited (TSX:TPL) (“Tethys” or the “Company”)
today provides an update with respect to three different legal
proceedings.
TAG Rehabilitation Filing
On August 10, 2017, Tethys Aral Gas LLP (“TAG”),
a wholly owned subsidiary of Tethys, filed an application for
rehabilitation with the Special Economic Court of Aktobe Region
(the “Rehabilitation Court”). The
application is subject to review and approval by the Rehabilitation
Court. Pending such review and approval, TAG will continue
business as usual, provided that no creditor may take any adverse
action against TAG in such review period, including EGG (as defined
below) attempting to enforce the decision of the Court of Appeal in
Almaty discussed below. In addition, TAG may, if
circumstances change, withdraw its application for rehabilitation
at any time.
On August 2, 2017, the Court of Appeal in Almaty
found in favour of Eurasia Gas Group LLP (“EGG”)
in its appeal of the decision of the lower court made in Tethys’
favour in February 2017 in relation to a lawsuit that arose in
connection with a contract for oil sales between EGG and TAG dated
2012. Tethys intends to appeal this decision to the Supreme
Court in Almaty and believes that it has a strong case to do so.
As noted above, EGG may not enforce the decision of the
Court of Appeals as TAG has filed an application for rehabilitation
with the Rehabilitation Court.
RBK Lawsuit
On August 8, 2017, Tethys commenced an action
against RBK Bank seeking an order that it provide Tethys with
access to records regarding the loan (the “RBK
Loan”) that it provided to EGG, and which is integral to
the action EGG brought against TAG that is referred to above.
Submissions were made to the court, and completed, on August 8 and
9, with a decision expected to be released on August 20,
2017. Tethys is seeking access to such records as it believes
such records will support it in its appeal in the proceeding
involving EGG.
Ruling Against Alex Skripka in Civil
Case
On July 26, 2017, the Aktobe City Court (the
“City Court”) found in favour of Tethys Services
Kazakhstan LLP (“TSK”), a wholly owned subsidiary
of Tethys, in a proceeding brought by Alex Skripka
(“Skripka”). Skripka alleged that his
employment agreement with TSK had been improperly terminated and
that, among other things, he was entitled to reinstatement of his
position with TSK and recovery of certain wages. The City
Court found that the employment agreement had been properly
terminated and that Skripka has no entitlement to further
employment with TSK or to any recovery of wages.
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 making an appeal of the
decision of the Court of Appeal to the Supreme Court, its pending
application for rehabilitation before the Rehabilitation Court, the
timing, or results, of the decision of the court in relation to the
action involving the RBK Loan. 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, the outcome
of legal disputes with EGG, the rehabilitation filing and the
timing and outcome of the legal proceeding seeking access to
information regarding the RBK Loan.
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
info@tethyspetroleum.com
www.tethyspetroleum.com