Tethys Petroleum update regarding various legal proceedings
August 10, 2017 08:24 ET | Source: Tethys Petroleum Limited
GRAND CAYMAN, Cayman Islands, Aug. 10, 2017 (GLOBE NEWSWIRE) — 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.
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