The Board of Directors of Petrogrand and Shelton Petroleum have not been able to solve the dispute regarding the conditions that have to be fulfilled for the conversion of Convertible 2. Petrogrand has today issued a press release stating their continued intent to convert and to let a court of law settle the issue. Shelton Petroleum’s position is that this is still a violation of the existing agreement between the parties and will therefore continue to protect the company's and its shareholders' interests with regards to this breach of contract. Shelton Petroleum intends to communicate further information shortly.
Both Shelton Petroleum and Petrogrand have previously announced that Petrogrand’s right to request conversion of Convertible 2 is conditional upon certain events. Convertible 2, issued with the objective of closing a specific acquisition within the oil and gas sector, was approved by extra general meetings in both Shelton Petroleum and Petrogrand. In accordance with the terms of the agreement entered into by the companies, Petrogrand has the right to convert Convertible 2, only if the acquisition is completed before 31 December 2013. This condition has as of today not been fulfilled, and therefore Petrogrand’s request for conversion constitutes a breach of contract.
The Boards of Petrogrand and Shelton Petroleum have over the past week discussed possible solutions to the disagreement between the parties, but have failed to agree. As Petrogrand persists in its request to convert, in violation of the agreement between the companies and its shareholders, the Board of Shelton Petroleum has no other option than to continue with protective measures to protect the company's and its shareholders' interests with regards to this breach of contract.
For more information, please contact:
Robert Karlsson, CEO, Shelton Petroleum, +46709 565141 email@example.com
Facts about Shelton Petroleum Shelton Petroleum is a Swedish company focused on exploring and developing concessions in Russia and the resource-rich basins of Ukraine. The company holds three licenses in the Volga-Urals area and has commenced production on the Rustamovskoye field after a successful exploration program. In Ukraine, Shelton Petroleum’s wholly owned subsidiary has a joint venture with Ukrnafta and Chornomornaftogaz, two leading Ukrainian oil and gas companies. The Shelton Petroleum share is traded on NASDAQ OMX Stockholm under the under the symbol SHEL B.