The Disciplinary Committee of Nasdaq Stockholm has informed Shelton Petroleum of its decision regarding events that took place between Shelton Petroleum and Petrogrand during spring 2014. The Shelton Petroleum share will be dismissed from trading on Nasdaq Stockholm on 4 February 2016.
The board of directors of Shelton Petroleum and Petrogrand will proceed with the previously announced transaction between the companies according to plan. Shelton Petroleum will apply for a listing of the company’s share on another market place.
Shelton Petroleum and Petrogrand were involved in a conflict during spring 2014. At that time, Petrogrand was managed by the old board of directors and managing director, which had a long history of substantial financial losses and an agenda where other interests than shareholder value were prioritized. As a result of bids that the companies placed on each other, a cross-ownership was established. This cross-ownership and the events that took place during the bids have been criticized by the stock exchange.
Shelton Petroleum and Petrogrand entered into a standstill agreement in June 2014, and since then there have been no conflicts between the two companies. During spring 2015, the old management and board were replaced, and that marked the beginning of a period of constructive dialog between the companies. The boards of both companies have since then spent a substantial amount of time and resources on dissolving the cross-ownership and building a platform for creating value.
Shelton Petroleum has in its statements to the disciplinary committee pointed out that the items criticized by the stock exchange took place during a short and limited period in time that occurred over one and a half years ago. The company has further stated that Shelton Petroleum and Petrogrand have recently entered into an agreement, which has been approved by shareholders in both companies, to dissolve the criticized cross-ownership. Nevertheless, the committee has resolved on the most severe sanction available. It is the opinion of the company that the committee’s decision is disproportional to the events that took place during a short and limited time period in the company’s history one and a half years ago and that it in a disproportionate manner is detrimental to the company’s 7,000 shareholders.
The transaction between Shelton Petroleum and Petrogrand continues according to plan
The disciplinary committee has also resolved to delist the Petrogrand share. The board of directors of Shelton Petroleum and Petrogrand will however complete the transaction between the companies according to plan. Petrogrand’s oil assets will be transferred to Shelton Petroleum in exchange for newly issued shares on 16 December. On 22 December, Petrogrand will distribute to its shareholders the new shares in Shelton Petroleum and the shares previously acquired. The Shelton Petroleum share will continue to be traded on Nasdaq Stockholm until 4 February. The company will pursue a new listing of the share in order to facilitate continued trade.
The Disciplinary Committee´s decision in full is available on www.nasdaqomx.com.
For more information, please contact:
Shelton Petroleum, tel +468 407 1850
About Shelton Petroleum
Shelton Petroleum is a Swedish company focused on exploring and developing concessions in Russia and Ukraine. In Russia, the company holds licenses in the Volga-Urals area in Bashkiria 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. Shelton Petroleum oil and gas 2P reserves amount to 34 million barrels. The company’s share is traded on Nasdaq Stockholm under the symbol SHEL B.
The information provided herein is such that Shelton Petroleum AB is obligated to disclose it pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 8:00 CET on 4 December 2015.
This is an English translation of the Swedish original. In case of discrepancies, the Swedish original shall prevail.