Tethys Petroleum completes strategic acquisition in Georgia, exits Uzbekistan
Baku, Azerbaijan, Jan. 2
By Aygun Badalova - Trend:
Tethys Petroleum Limited, the oil and gas exploration and production company focused on Central Asia and the Caspian Region, has received the appropriate Georgian governmental consent for the acquisition of a 56 percent interest in Blocks XIA, XIM and XIN (Project "Iberia") in eastern Georgia, the company reported on Jan. 2
Tethys also announced that it will exit Uzbekistan.
"The amendments to the Production Sharing Contracts ("PSCs") have been declared effective and will now be registered with the appropriate State bodies," the company's report said.
Tethys will not complete at this time the previously announced acquisition of Blocks VIII and XIG (Project "Tamar").
"Tethys does not believe that all of the conditions relating to this acquisition will be fulfilled, and deciding instead to focus investment and resources at this time on the Iberia blocks where both conventional and unconventional resources are better defined at present," the company said.
The 8,320,000 ordinary shares previously issued with respect to this project will be cancelled, resulting in the current shares outstanding being 299,557,744.
According to the report, Tethys has made a corporate decision to exit Uzbekistan effective immediately due to recent changes in the business climate and political environment. It is expected to take up to three months to complete the process of exiting from the existing Production Enhancement Contract ("PEC") for the North Urtabulak field. This strategic decision will allow Tethys to refocus capital to other countries of operation, progressing both exploration and production activities.