The management of Shelton Petroleum AB (”Shelton Petroleum”) and the management of Petrogrand AB (“Petrogrand”) have decided to enter into an agreement regarding two directed issues of convertible debentures with a combined amount of approximately SEK 215 million and a tenure to 31 December 2013. The first convertible is unconditional and amounts to SEK 30 million and the second amounts to SEK 185 million and is conditional upon certain events. The conversion price for both convertibles amounts to SEK 20 per share.
At full conversion, Petrogrand will control approximately 50 per cent of the shares in Shelton Petroleum. Petrogrand will commit to distribute its shares in Shelton Petroleum to its shareholders by a Lex Asea dividend. The agreement is subject to approval by extra shareholders’ meetings in Shelton Petroleum and Petrogrand respectively. Shareholders in Shelton Petroleum representing approximately 25 per cent have expressed their support for the transaction. Shareholders in Petrogrand representing approximately 35 per cent have expressed their support for the transaction.
Background and reasons
Shelton Petroleum has during the past few years gradually developed from a pure exploration company to become an oil producing company. Today, the production from the two oil fields Lelyaki and Rustamovskoye exceeds 500 barrels per day. Both fields have a considerable development potential. The operational achievements are reflected in the financial development. In 2012, the company doubled its turnover to SEK 100 million and generated a pretax profit of SEK 31 million. Shelton Petroleum’s and Petrogrand’s management believe that with external financing the company can continue to develop its existing licenses in a beneficial way for shareholders. The proceeds from the issues will primarily be used for expansion, increases in production of the producing fields and acceleration of the development of other licenses in the portfolio, including the offshore fields.
Pareto Öhman AB is financial advisor and Kilpatrick Stockton is legal advisor to Shelton Petroleum AB.
For more information, please contact:
Robert Karlsson, CEO, Shelton Petroleum, +46 709 565141
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.
Shelton Petroleum is publishing this information in accordance with the Swedish Financial Markets Act (Sw. Lag om värdepappersmarknaden) and/or the Swedish Financial Trading Act (Sw. Lag om handel med finansiella instrument). This information was released for publication on 14 June 2013 at 08:15 CET.