Olisol Petroleum Press Release: Update on information on relations with TethysAralGas
HONG KONG, May 15, 2018 (GLOBE NEWSWIRE) -- OLISOL Petroleum (hereinafter - "Olisol") hereby informs that from February to May 2018, it held a dialogue with the Board of Directors of Tethys Petroleum (hereinafter - "Tethys") and the new management of TethysAralGas (hereinafter - the TAG) and tried to find a mutually beneficial solution to the disputed issues.
Olisol proposed a settlement plan and a solution to the issue of restructuring of the previously received loans for TAG in RBK Bank/DSFK on favorable terms.
With the help of Olisol, a meeting was held in the DSFK with participation of the representative of the Tethys Board of Directors and the new CEO of Tethys.
Also, options were offered for repayment of the amount received by Tethys from Olisol under the loan agreement or conversion into Tethys shares. To date, this amount is USD 6.5 million, including the accrued interest.
With the assistance of Olisol in April 2018, proposals for purchase of oil since May 2018 were received from two large oil refineries and traders, with the terms of a three-month advance payment. These oil buyers provided necessary financial confirmations from three Kazakhstani banks on the availability of the required amount.
The cost of oil offered by Tethys on terms of customer pickup from the Doris field was USD 28 per 1 (one) barrel. Based on the reports of Argus, an independent analytical agency, Olisol informed that the proposed price corresponds to the price of oil existing in the Kazakhstani market. Currently, Tethys sells oil at prices significantly lower than those offered by oil refineries directly.
On May 3, 2018, Eurasia GAS Group (hereinafter - the "EGG") filed a lawsuit on imposition of a duty on TAG to fulfill the terms of the oil supply contract for EGG and the joint activity agreement. Oil price proposed by EGG in May 2018 is USD 28 per 1 (one) barrel.
As a shareholder of Tethys Olisol insists on informing all shareholders on the reasons why oil sales since 2017 are carried out at prices significantly lower than the market ones.
Olisol is headquartered in Almaty, Kazakhstan and its subsidiaries and affiliates have investments in energy and oil and gas operations in the Russian Federation and Kazakhstan. Olisol has worked with Tethys in Kazakhstan for over seven years, is joint owner of the Aral Oil Terminal with Tethys and has its own fleet of special oil trucks involved in oil transportation from Tethys' oil fields. Olisol, through its affiliates, is engaged in railroad transportation, processing of oil, storage and sale of oil products.
Some of the statements in this press release are forward-looking. When used in this document, the words "expects," "believes," "anticipates," "plans," "may," "will," "intends", "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 foregoing. No part of this announcement constitutes, or shall be taken to constitute, an invitation or inducement to invest in the Olisol, Tethys or any other entity, and shareholders of Tethys are cautioned not to place undue reliance on the forward-looking statements. Save as required by applicable law, Olisol does not undertake to update or change any forward-looking statements to reflect events occurring after the date of this announcement.
Authorized Point of Contact:
OLISOL Petroleum Limited
Tel.: +34 64 515 08 69