Tethys to sell 50% of its oil and gas assets in Kazakhstan to SinoHan Oil and Gas Investment B.V.

Tethys to sell 50% of its oil and gas assets in Kazakhstan to SinoHan Oil and Gas Investment B.V.:

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Tethys well in Kazakhstan (image: tethyspetroleum.com)

Tethys Petroleum Limited has announced that it has entered into a definitive agreement for the sale of 50% of its Kazakh oil & gas assets to SinoHan Oil and Gas Investment B.V. ("SinoHan"), part of HanHong, a Beijing, PRC based private equity fund.

Under the terms of the agreement, SinoHan will acquire a 50% + 1 share in Tethys Kazakhstan SPRL ("TKSPRL"), the wholly owned subsidiary of Tethys which holds the Kazakh assets.

Tethys will receive an initial payment of USD 75 million, with additional performance bonus payments for the incremental discovery of 2P reserves achieved from the 2013 and 2014 drilling program, and also in profit sharing of excess profit at any exit by SinoHan from the project.

The sale is subject to Kazakh State approvals, including the waiver on pre - emption (Article 36). Closing will take place once these approvals are received."

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