Nostrum withdraws offer for Tethys Petroleum

Nostrum Oil & Gas has withdrawn its proposed offer to acquire Tethys Petroleum and supply it with interim funding.

“Tethys' largest shareholder, Pope Asset Management LLC, has informed Nostrum that it does not support the proposed offer and therefore, despite the progress made by Nostrum and Tethys in preparing transaction documentation, the proposed transaction will not proceed,” the company said.

At the end of last month, Tethys and Nostrum had agreed headlines terms whereby Nostrum would buy the company for CAD0.147 per share and supply Tethys with $20m in interim funding for its subsidiary, Tethys Kazakhstan.

Nostrum added on Wednesday that it reserves the right to propose alternative transactions to Tethys and/or make an offer for the share capital of Tethys on different terms to those previously announced.