Tethys Petroleum Ltd (LON:TPL, TSE:TPL) nearly doubled in London after the Kazakh focussed oil and gas junior seemingly moved closer to securing its financial future.
In a regulatory statement earlier confirmed that a motion to reduce the par value of its ordinary shares has been granted approval by the Grand Court in the Cayman Islands and as such it is set to clear the final remaining hurdle in the way of its recapitalisation.
A private placing, arranged earlier this year, can now proceed and is now due to complete on September 2.
"The company has been through a challenging time,” said Kenneth May, Tethys Petroleum interim chief executive.
“Working with Olisol, the company should be able to boost profitability by restarting the shallow gas drilling programme to increase production, while at the same time cutting costs and increasing efficiency."
The company also noted that a court hearing is scheduled today regarding one of its Kazakh subsidiaries, after a prior hearing had the business frozen. It follows a claim against the company by a private individual relating to a US$7.5mln debenture (which was due at the end of June).
Tethys said it expects a release of its assets and hopes for dismissal of all claims.
The company added: “Tethys has been working tirelessly to resolve what it believes is an unfounded claim.”