Tethys Petroleum Ltd has announced that it has received a Notice of Events of Default from Nostrum Oil & Gas PLC in connection with the US$5 million facility agreement between Tethys and Nostrum, dated 10 August 2015. Tethys does not agree with Nostrum's interpretation of the Facility Agreement that an event of default has occurred, has submitted a rebuttal of the notification received and has reserved all its rights.
Nostrum has indicated that its interpretation is due to the announcement on 12 October 2015 that Tethys had received a notice from CNPC Central Asia B.V. and Total E&P Tajikistan B.V. requiring that Tethys' subsidiary, Kulob Petroleum Limited withdraw from the Joint Operating Agreement in Tajikistan and the underlying PSC.
Tethys continues to work with interested parties to conclude a financing transaction as soon as possible and anticipates providing an update on this shortly.
Edited from press release by Angharad Lock
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/14102015/tethys-petroleum-nostrum-loan-update-1601/