Tethys Petroleum to raise $13 mln in private placement offering

Tethys Petroleum (TSE:TPL) said Tuesday it plans to raise roughly $13.1 million through a private placement financing, and use the funds to acquire an additional 34 percent in its joint venture Seven Stars Energy.
The oil and gas company said it expects to sell around 26 million ordinary shares at 52 Canadian cents each.
Tethys said the shares represent 10 percent of the current issued share capital of the company.
The private placement is slated to be completed on December 14, and is subject to regulatory approval.  The ordinary shares of the company are listed on the Toronto Stock Exchange and the London Stock Exchange under the symbol "TPL".
Seven Stars Energy – of which Tethys already owns 51 percent – holds the rights to the Bokhtar production sharing contract in Tajikistan. Tethys has the option to acquire an additional 34 percent in the venture from its partner. Once this option is exercised, an outstanding loan from Tethys to Seven Stars will be restructured and Tethys will hold 85 percent of the joint venture.
Proceeds from the offering will also be used for additional work on the Beshtentak oilfield in Tajikistan, where flow testing of a recompleted well showed rates of over 600 barrels of oil per day.
Tethys currently has oil and gas exploration and production activities in the former Soviet republics of Kazakhstan, Tajikistan and Uzbekistan.