Tethys Petroleum Corporate Update
Rhea-AI Summary
Tethys Petroleum (TSXV: TPL) has won a significant arbitration case initiated in November 2023 at the International Arbitration Centre. The ruling on May 13, 2025, declares that a Settlement Deed and Release Agreement from December 2019 is no longer binding. The arbitrator ordered DSFK Special Finance Company LLP to pay Tethys 1.43 billion KZT and mandated the cancellation of 18 million shares issued to Olisol Petroleum Limited. Additionally, DSFK and Olisol must pay 50,000 EUR and 50,000,000 KZT towards arbitration and legal costs. Tethys is now determining steps to enforce the arbitration ruling.
AI-generated analysis. Not financial advice.
Positive
- Won arbitration case resulting in potential recovery of 1.43 billion KZT
- Cancellation of 18 million shares, reducing share dilution
- Additional award of 50,000 EUR and 50,000,000 KZT for legal costs
Negative
- Enforcement of arbitration ruling still pending
- Timeline for recovery of awarded amounts remains uncertain
News Market Reaction – TETHF
On the day this news was published, TETHF gained 34.85%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Grand Cayman, Cayman Islands--(Newsfile Corp. - May 14, 2025) - Tethys Petroleum Limited (TSXV: TPL) ("Tethys" or the "Company") is pleased to provide an update on the Company's operations in the Republic of Kazakhstan.
Arbitration update
In November of 2023 Tethys initiated an arbitration with the International Arbitration Centre regarding a Settlement Deed and Release Agreement that was entered into in December of 2019. The relief sought by Tethys was to declare that the Settlement Deed and Release is no longer binding, and for DSFK Special Finance Company LLP to pay Tethys Petroleum 1,434,692,762 KZT, and for the 18 million shares issued to Olisol Petroleum Limited to be cancelled.
On May 13, the sole Arbitrator ruled and declared that the Settlement Deed is declared no longer binding. DSFK Special Finance Company LLP is ordered to pay Tethys Petroleum Limited 1,434,692,762 KZT. Olisol Petroleum Limited is ordered to cancel share certificates GS 44 and GS 43 (totaling 18 million shares). DSFK Special Finance Company LLP and Olisol Petroleum Limited are ordered to pay Tethys 50,000 EUR and 50,000,000 KZT towards the reimbursement of the costs of the arbitration and the Company's legal costs.
The Company is in the process of determining the next steps necessary to have the arbitration ruling enforced.
About Tethys
Tethys is focused on oil and gas exploration and production activities in Central Asia and the Caspian Region.
Disclaimer
Some of the statements in this document are forward-looking. 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 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact Information:
Tethys Petroleum
Casey McCandless
Chief Financial Officer
901-763-4001
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/252180