Tethys Petroleum Ltd’s (LON:TPL TSX:TPL) subsidiary in Kazakhstan has been raided in connection with its ongoing dispute with main shareholder Olisol.
Local arm TAG faces a criminal investigation, which Tethys claims was instigated by Alexander Abramov who up until 4 days ago was the AIM-listed group’s chairman.
Abramov, who is also the principal of Olisol, was replaced at a Tethys board meeting on 3 November or two days after the search warrant for the local offices was issued.
Management of TAG have been questioned and the company said it is concerned that the actions taken may deprive it of control over its subsidiaries.
Olisol and Tethys are at loggerheads over a failed US$9.8mln fund raise, with claims and counter claims of default, non-payment and reneging on agreements.
Tethys is preparing to appeal to the Head of the Executive Office of the President of the Republic of Kazakhstan, the General Prosecutor and other Kazakh Governmental agencies requesting their assistance and intervention.
Separately, Tethys said it has been approached by two investors, Sanjeev Kumar and Medgat Kumar, over a possible injection of US$1.4mln for a 9.9% stake with warrants.
The two are oil traders, with Medgat Kumar the owner of Kazakhstan-based Petro Impax Trade while Sanjeev Kumar is the head of London-based State Oil Group.
Tethys rose 9% to 1.09p.