TORONTO, ONTARIO -- (Marketwire) -- 10/05/10 -- Tethys Petroleum Limited ("Tethys" or the "Company") (TSX: TPL) announced today that it has agreed to the terms of equity offering (the "Offering") of ordinary shares of the Company ("Ordinary Shares") announced on October 4, 2010. Pursuant to the Offering, the Company will issue a maximum of 70,588,966 Ordinary Shares at a price of C$1.45 per share, for total maximum gross proceeds of US$100 million. The net proceeds of the offering are intended to be used by Tethys to fund work on its existing properties in Kazakhstan, Uzbekistan and Tajikistan, and for working capital and general purposes. The aim of the offering is to provide funding for near term production, development and appraisal activities in Kazakhstan, Tajikistan and Uzbekistan, to further expand the Company's oil development in Kazakhstan, and to acquire additional data to potentially enhance the value of the Company's exploration assets.
Fraser Mackenzie Limited, Renaissance Capital and Quam Capital will act as joint lead managers for the offering in a syndicate of agents that includes FirstEnergy Capital Corp. The offering is conducted in the provinces of British Columbia, Alberta and Ontario, Canada through Fraser Mackenzie Limited, and FirstEnergy Capital Corp., and Renaissance Capital and Quam Capital act as special selling agents for the purpose of procuring subscribers in certain jurisdictions outside of Canada, where each such special selling agent is qualified to carry on business. The syndicate of agents will offer the Ordinary Shares as agents on a "commercially reasonable efforts" basis. The Offering is conditional on the issue and sale of a minimum of 42,353,103 Ordinary Shares for minimum gross proceeds of US$60 million.
The Offering is subject to all customary conditions and regulatory approvals, including that of the Toronto Stock Exchange and filing of a final prospectus with Canadian securities regulatory authorities. Completion of the Offering is expected to be on or about October 20, 2010.
Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Kazakhstan, Tajikistan and Uzbekistan. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein. Any such solicitation or offer may only be made in accordance with applicable laws. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to United States Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to our operations. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including the risk that the Company be unable to successfully complete the offering and the risk that the proceeds may not be sufficient for the purposes stated in the prospectus and the risk that all regulatory approvals will be obtained and conditions satisfied. See the description of risks and uncertainties and underlying factors and assumptions relevant to the offering and "forward looking information" contained herein and to the Company's business, including its exploration and development activities, contained in the amended and restated preliminary prospectus dated October 5, 2010 (which are incorporated herein by reference). 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.