Tethys announces farm-out on Kazakhstan assets
ALMATY, Kazakhstan -- Tethys Petroleum Limited, an E&P company focused on Central Asia and the Caspian Region, has entered into a definitive agreement for the sale of 50% of its Kazakh oil & gas assets to SinoHan Oil and Gas Investment B.V., part of HanHong, a Beijing-based private equity fund.
Tethys will receive an initial payment of $75 million for this sale. Additional performance bonus payments will be made to Tethys for the incremental discovery of 2P reserves achieved from the 2013 and 2014 drilling program, and also in profit sharing of excess profit at any exit by SinoHan from the project.
SinoHan will acquire a 50% + 1 share in Tethys Kazakhstan SPRL (TK SPRL), the wholly-owned subsidiary of Tethys which holds the Kazakh assets. Tethys will remain as the operator of the Kazakh assets with both partners having equal board representation in TK SPRL.