Tethys Petroleum Ltd. (TETHF)

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Tethys Petroleum Announces Pricing of US $100 Million Offering

Oct 6, 2010 11:28:00 PM
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Toronto, Ontario, Oct 7, 2010 - (ACN Newswire) - Tethys Petroleum Limited ("Tethys" or the "Company") (TSX: TPL), announced today that it has agreed to the terms of equity offering (the "Offering") of ordinary shares of the Company ("Ordinary Shares") announced on October 4, 2010. Pursuant to the Offering, the Company will issue a maximum of 70,588,966 Ordinary Shares at a price of C$1.45 per share, for total maximum gross proceeds of US$100 million. The net proceeds of the offering are intended to be used by Tethys to fund work on its existing properties in Kazakhstan, Uzbekistan and Tajikistan, and for working capital and general purposes. The aim of the offering is to provide funding for near term production, development and appraisal activities in Kazakhstan, Tajikistan and Uzbekistan, to further expand the Company's oil development in Kazakhstan, and to acquire additional data to potentially enhance the value of the Company's exploration assets.

Fraser Mackenzie Limited, Renaissance Capital and Quam Capital will act as joint lead managers for the offering in a syndicate of agents that includes FirstEnergy Capital Corp. The offering is conducted in the provinces of British Columbia, Alberta and Ontario, Canada through Fraser Mackenzie Limited, and FirstEnergy Capital Corp., and Renaissance Capital and Quam Capital act as special selling agents for the purpose of procuring subscribers in certain jurisdictions outside of Canada, where each such special selling agent is qualified to carry on business. The syndicate of agents will offer the Ordinary Shares as agents on a "commercially reasonable efforts" basis. The Offering is conditional on the issue and sale of a minimum of 42,353,103 Ordinary Shares for minimum gross proceeds of US$60 million.

The Offering is subject to all customary conditions and regulatory approvals, including that of the Toronto Stock Exchange and filing of a final prospectus with Canadian securities regulatory authorities. Completion of the Offering is expected to be on or about October 20, 2010.

About Tethys Petroleum Limited

Tethys Petroleum Limited ("Tethys") is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republic of Kazakhstan, the Republic of Tajikistan and the Republic of Uzbekistan. This highly prolific oil and gas area is rapidly developing and Tethys believes significant potential exists in both exploration and in discovered deposits. www.tethyspetroleum.com


Contact: Tethys Petroleum Limited
Sabin Rossi
Vice President Investor Relations
[phone]
[phone] (FAX)
[e-mail]
www.tethyspetroleum.com
or In Asia-Pacific

Quam IR
Anita Wan
Associate Director
Office phone/fax + (852) 2217-2999
[e-mail]
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