Tethys Petroleum Limited
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This document comprises a prospectus relating to Tethys Petroleum Limited ("Tethys Petroleum" or the "Company") prepared in accordance with the Prospectus Rules of the Financial Conduct Authority made under section 73A of the Financial Services and Markets Act 2000. This prospectus will be made available to the public in accordance with the Prospectus Rules. If you are in any doubt about the contents of this document you should consult your stockbroker, bank manager, solicitor, accountant or other financial adviser. It should be remembered that the price of securities and the income from them can go down as well as up. The Company and its Directors (whose names appear on pages 70 - 72 of this document) accept responsibility for the information contained in this document. To the best of the knowledge of the Company and the Directors (who have taken all reasonable care to ensure that such is the case), the information contained in this document is in accordance with the facts and contains no omission likely to affect its import. Application will be made to the Financial Conduct Authority for 19,789,159 of the New Ordinary Shares (as defined herein) to be admitted to listing on the Official List and to the London Stock Exchange for such New Ordinary Shares to be admitted to trading on the London Stock Exchange's main market for listed securities (together "Admission"). It is expected that Admission will become effective at 8 a.m. on 20 June 2014. Admission of 17,105,764 of the New Ordinary Shares took place on 20 May 2014. Prospective investors should read this entire document. For a discussion of certain risk and other factors that should be considered in connection with an investment in the New Ordinary Shares, see "Risk Factors" set out on pages 16 - 36 of this document. TETHYS PETROLEUM LIMITED (a company continued under the laws of the Cayman Islands with registered number:OG-214254) Admission of 19,789,159 New Ordinary Shares to listing on the Official List (by way of Standard Listing under Chapter 14 of the Listing Rules) and to trading on the London Stock Exchange _______________ Expected share capital immediately following Admission Issued Ordinary Shares of USD0.10 Authorised Issued and Fully Paid 336,452,667 700,000,000 The New Ordinary Shares rank pari passu in all respects with the existing Ordinary Shares and rank in full for all dividends and other distributions declared, made or paid on Ordinary Shares. This document does not constitute an offer to sell, or the solicitation of an offer to subscribe for or buy, any New Ordinary Shares to any person in any jurisdiction to whom or in which such offer or solicitation is unlawful. The distribution of this document in certain jurisdictions may be restricted by law. Neither this document nor any advertisement or any other offering material may be distributed or published in any jurisdiction except under circumstances that will result in compliance with any applicable laws and regulations. Persons into whose possession this document comes should inform themselves about and observe any such restrictions. Any failure to comply with any of those restrictions may constitute a violation of the securities laws of any such jurisdiction. The Ordinary Shares and the New Ordinary Shares are not registered under the US Securities Act of 1933, as amended (the "Securities Act"). The Company's Ordinary Shares are listed on the Toronto Stock Exchange (the “TSX”) as well as the London Stock Exchange. Completion of the offering of 19,789,159 of the New Ordinary Shares is subject to the conditional acceptance by the TSX of the Company’s listing application. Notwithstanding the Company’s application to list 19,789,159 of the New Ordinary Shares on the TSX, resale thereof on the TSX or in a sale otherwise subject to Canadian securities laws, will be subject to restrictions. See “Restrictions on Transfer”. Investors should rely only on the information contained in this document and any supplementary prospectus produced to supplement the information contained in this document. No person has been authorized to give any information or to make any representations other than those contained in this document in connection with the New Ordinary Shares and, if given or made, such information or representations must not be relied upon as having been authorized by or on behalf of the Company. Without prejudice to any obligation of the Company to publish a supplementary prospectus pursuant to section 87G(1) of FSMA and Rule 3.4 of the Prospectus Rules, neither the delivery of this document nor any subscription or sale made under this document shall, under any circumstances, create any implication that there has been no change in the business or affairs of the Company or of the Group taken as a whole since the date of this document or that the information contained herein is correct as of any time subsequent to the date of this document. The contents of this document are not to be construed as legal, business or tax advice. Investors should consult their own lawyer, financial adviser or tax adviser for legal, financial or tax advice in relation to the acceptance of New Ordinary Shares. FirstEnergy Capital LLP (“FirstEnergy”) and Cantor Fitzgerald Europe (“Cantor”, together with FirstEnergy the “Placing Agents”) have acted exclusively for the Company and no one else in connection with the Offer and will not regard any other person as a client in relation to such matters and will not be responsible to any other person for providing the protections afforded to its clients, or for providing advice in connection with the Offer, or any other matters referred to in this document. This document has not been prepared or independently verified by the Placing Agents and neither of the Placing Agents give, has given or has authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this document and liability therefore is expressly disclaimed. Accordingly, the Placing Agents take no responsibility for, or will not accept any liability whether direct or indirect, express or implied, contractual, tortuous, statutory or otherwise, in respect of the accuracy or completeness of the contents of this document or for any opinions, errors, omissions or misstatements in or for any loss, howsoever arising from the use of this document. CONTENTS PAGE SUMMARY ...........................................................................................................................1 RISK FACTORS .................................................................................................................. 16 FORWARD-LOOKING STATEMENTS AND OTHER INFORMATION................................................ 37 PART I .............................................................................................................................. 39 BUSINESS OF TETHYS PETROLEUM ...................................................................................... 39 1. BUSINESS OVERVIEW AND HISTORY OF THE BUSINESS............................................. 39 2. SIGNIFICANT SUBSIDIARIES................................................................................... 43 3. EMPLOYEES........................................................................................................... 44 4. RESERVES AND RESOURCES ................................................................................... 45 PART II ............................................................................................................................. 46 UNAUDITED PRO FORMA FINANCIAL INFORMATION ............................................................... 46 PART III............................................................................................................................ 54 ADDITIONAL INFORMATION ................................................................................................ 54 1. RESPONSIBILITY.................................................................................................... 54 2. WORKING CAPITAL ................................................................................................ 54 3. SHARE CAPITAL ..................................................................................................... 54 4. ARTICLES OF CONTINUANCE OF THE COMPANY ......................................................... 56 5. SIGNIFICANT CHANGE............................................................................................ 70 6. EXECUTIVE OFFICERS AND DIRECTORS.................................................................... 70 7. MAJOR SHAREHOLDERS.......................................................................................... 76 8. AUDITORS ............................................................................................................ 76 9. MATERIAL CONTRACTS ........................................................................................... 76 10. DIVIDENDS AND WITHHOLDING TAX ....................................................................... 79 11. CAPITALISATION AND INDEBTEDNESS ..................................................................... 82 12. MISCELLANEOUS ................................................................................................... 83 13. DOCUMENTS AVAILABLE FOR INSPECTION................................................................ 84 SCHEDULE 1.....................................................................................................................