HONG KONG, March 15, 2017 (GLOBE NEWSWIRE) -- OLISOL Petroleum Limited ("Olisol" or the "Company") today announces that at the moment TethysAralGas, a subsidiary of Tethys Petroleum (which OLISOL owns 15.76% shares of) in Kazakhstan, is violating binding oil delivery terms of the oil delivery contract № 05-05-1814 dated January 1st, 2012 signed with Eurasia GAS Group. This contract provides for obligatory oil deliveries from TethysAralGas exclusively for Eurasia GAS Group up to December 31st, 2018. In violation of its obligations with its letter #01-09-01/08 dated January 10th, 2017 TethysAralGas has informed Eurasia GAS Group that at Akkulka Mine the oil production is being stopped due to the execution of necessary maintenance. TethysAralGas stated that it would additionally notify on the end date for these operations. Coincidently TethysAralGas has entered the oil supply agreement with Prax-AK. By doing this, TethysAralGas is selling to Prax-AK the oil paid for by Eurasia GAS Group as early as in 2012. Until recently, the oil received by Prax-AK was being transported to the State Oil Refinery – Atyrau Refinery.
According to the current Ruling of Economic Court of Almaty dated January 26th, 2017 on seizure of property of TethysAralGas and corresponding measures applied by the judicial enforcement agent, starting from March 6th, 2017 Atyrau Refinery has cancelled the acceptance of oil supplied from TethysAralGas. In addition, the export of petroleum products obtained from TethysAralGas’ oil was stopped.
On the 9th of March, 2017 the court has passed a judgment and rejected the complaint laid by TethysAralGas. Also, the ruling dated January 26th, 2017 was left unchanged. Thus, at the moment the movable and immovable assets of TethysAralGas are under arrest and TethysAralGas is prohibited to make actions aimed at alienation of subsoil usage rights at the mines.
The Company hereby informs the oil refineries of the Republic of Kazakhstan that according to the contract signed in 2012, until December 31st, 2018 the oil produced by TethysAralGas shall be supplied only to Eurasia GAS Group.
About OLISOL
As of November 30th, 2016 OLISOL Company owned 15.76% of shares of Tethys Petroleum and was to increase its share in Tethys up to 42%. On November 30th, 2016 the Board of Directors of Tethys Petroleum without having the permission for additional issue of shares from the relevant authority, Ministry of Energy of the Republic of Kazakhstan, has initiated the issue of shares for Prax PTE LTD and Jin Guang LTD and by doing this, has illegally diluted the shares of OLISOL in Tethys.
Due to violations made by TethysAralGas in oil deliveries for Eurasia GAS Group, Eurasia GAS Group has claimed the return of funds paid for oil delivery and compensation of losses from TethysAralGas in the amount of $22, 988, 731. Also, OLISOL demands the return of working capital provided with interest accrued in the amount of $5, 916, 091.95. The return of the working capital was supposed to happen on the 31st of August, 2016.
OLISOL and its subsidiaries and affiliates have investments in energy and oil & gas operations in Russia and Kazakhstan. For more than 7 years the company has been collaborating with Tethys in Kazakhstan. Together with Tethys the company owns Aral Oil Terminal and has its own oil truck fleet intended for automobile oil transportation from Tethys’ mines. OLISOL has a workforce of highly skilled specialists in oil & gas area with its headquarters in Almaty, Kazakhstan.
Disclaimer
Some of the statements in this press release are forward-looking. Forward-looking statements include statements regarding the intent, belief and current expectations of OLISOL or its officers. When used in this document, the words "expects," "believes," "belief," "anticipates," "intends," "plans," "may," "will," "should" and similar expressions, and the derivatives and negatives thereof, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to risks and uncertainties that could cause actual outcomes to differ materially from those suggested by any such statements.
No part of this announcement constitutes, or shall be taken to constitute, an invitation or inducement to invest in OLISOL, Tethys or any other entity, and shareholders of Tethys are cautioned not to place undue reliance on the forward-looking statements. Save as required by the Listing Rules and applicable law, OLISOL does not undertake to update or change any forward-looking statements to reflect events occurring after the date of this announcement.