Pope forces Tethys Petroleum founders out

Two of Tethys Petroleum's founders have left the board after a major shareholder agitated for change at the top. But more heads could role when the company, which is hunting for oil and gas in Central Asia and the Caspian region, puts new proposals to the vote next month.

Tethys first received a requisition for an extraordinary general meeting (EGM) last month from Pope Asset Management, which owns a 17.3% stake in the company. It wants to replace most of the directors with its own men - David Botting, David Roberts, John Bell and David Henderson.

"The unanimous view of the board is that the proposed director changes ARE NOT in the best interests of the company and could seriously jeopardise the development of the business," said Tethys at the time. And its attitude appears not to have changed.

Dr David Robson, director since the company's creation in 2003, and co-founder Liz Landles have both resigned with immediate effect, Tethys said Wednesday.

"It is with regret that, in the interests of the company, I feel compelled to step down from the board of Tethys Petroleum Limited as a director," said Robson. "I have worked my hardest to build a successful business and I believe that we have a very effective oil and gas exploration and production company working in Central Asia and the Caucasus with some notable firsts and with enormous potential."

Landles, according to vice chairman and MP Peter Lilley, "has played a pivotal role in making the company into what it is today."

Clearly, high costs have been a bugbear for some time. Tethys raised $15 million (£12 million) in May via a placing at 24p and has been promising to streamline management structures and overall costs. This, and the pressure from Pope.

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