Tethyda Ltd., a subsidiary of Tethys Petroleum Ltd., Guernsey, U.K., (Toronto: TPL) plans to acquire a subsidiary from Rosehill Energy Plc Castletown, U.K., for US$6.5 million in stock.

Tethys issued 15 million shares valued at approximately US$0.42 each.

The subsidiary holds Rosehill’s entire interest in the production enhancement contract for the North Urtabulak oil field in Uzbekistan. The field is in the northern portion of the Amu-Darya Basin and is the second largest oil field in Uzbekistan.

Average net daily production in January was 913 barrels of oil per day.

Tethys chief executive David Robson says, “The country has very significant potential for oil, gas and condensate production and Tethys is one of the few independent oil and gas companies working there, and I believe the only independent oil and gas company working in three of the republics of Central Asia. This places Tethys in a strong position to advance its strategy of creating shareholder value by building an oil and gas exploration and production company focused on Central Asia with a mix of short-term cash flow and upside potential.”

The subsidiary receives 50% of all incremental production of each individual well it works on for the first three years of production, and the Uzbek State Oil Co. receive 50%.