Tethys Financing Deal with AGR Falls Through, Talks with Nostrum

Central Asia-focused Tethys Petroleum announced Monday that a $47.7-million financing deal with AGR Energy, which the company's management previously said represented "a transformational deal for Tethys", has fallen through. However, talks with Nostrum Oil & Gas, a company with interests in the Caspian Basin, are back on in spite of Tethys rejecting Nostrum's original takeover approach in mid-July.

This time, Tethys and Nostrum have negotiated a $5 million loan financing in order to support short-term liquidity at Tethys during the period in which any formal offer may be made. Tethys has also agreed to grant exclusivity to Nostrum until August 25 for the purpose of conducting due diligence.

Nostrum's proposed offer for Tethys remains at CAD 0.2815 ($0.17) per Tethys share, which would value Tethys at approximately $57 million (based on the 336.7 million shares that have so far been issued by Tethys).

Tethys Executive Chairman John Bell commented in a company statement:

"With the latest news around the previously-announced financing with AGR Energy, the board of Tethys has engaged in positive discussions with Nostrum and we are very pleased to have secured additional financing from Nostrum to meet our near-term liquidity needs. We look forward to working closely with Nostrum over the coming weeks in connection with its indicative possible offer for Tethys."

 

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Oil and Gas job opportunity for "Big 4" Trained Auditors
Expertise: Accounting
Location: Houston, TX
 
Project Accountant
Expertise: Accounting
Location: Nashville, TN
 
PROJECT CONTROL SPECIALIST
Expertise: Project Controls
Location: Baytown, TX
 
search for more jobs

Brent Crude Oil : $53.89/BBL 1.67%
Light Crude Oil : $50.84/BBL 2.14%
Natural Gas : $3.7/MMBtu 2.77%
Updated in last 24 hours