Tethys: To Continue Exclusive Period with AGR Energy, Board Won't Pursue Nostrum Offer

Tethys Petroleum Limited refers to its announcement dated July 13, 2015 confirming the approach made earlier that day by Nostrum Oil & Gas PLC (“Nostrum”) to the board of directors of Tethys (the “Board”) regarding a possible offer for the entire issued share capital of Tethys (the “Possible Offer”).

The Possible Offer would provide for a price of C$0.2185 per Tethys share, whether in cash or Nostrum shares or a combination of both, as determined by Nostrum. The Possible Offer is subject to various conditions, including, amongst other things, the completion of customary due diligence (satisfactory to Nostrum) including a site visit and is subject to approval from the board of directors of Nostrum.

The Board and management of Tethys believe that the current strategic collaboration with AGR Energy and US$47.7 million financing (the “AGR Placing”) represents a transformational deal for Tethys that has the potential to add significant value for shareholders of Tethys. In addition, the Company is currently in a period of exclusivity with AGR Energy which is active until closing of the AGR Placing or, if earlier, termination of the subscription agreement with AGR Energy, all as previously announced on 1 July 2015.

Accordingly, having given due consideration to the Possible Offer, the Board has resolved not to pursue or engage in discussions with Nostrum.

Reference is made to the separate announcement of the Company today providing an update on the AGR Placing and the agreement of Pope Asset Management, LLC to subscribe for ordinary shares in the Company in connection therewith.