Petrogrand AB has requested the conversion of Convertible Debenture 2 of
185,249,280 SEK to 9,262,464 new B-shares in Shelton Petroleum. Since the
conditions agreed by the parties in July 2013 have not been fulfilled,
Petrogrand’s request for conversion is a breach of contract.
As both Shelton Petroleum and Petrogrand have previously announced, the right
to convert Convertible 2 according to the agreement is subject to the
completion of a particular transaction. In the fall of 2013, shareholders of
both Petrogrand and Shelton Petroleum approved, at extraordinary general
meetings, Convertible 2 with this specific condition for conversion. Since this
condition has not been fulfilled, Petrogrand’s request for conversion
constitutes a breach of contract. In previous contacts with Petrogrand, Shelton
Petroleum has clearly communicated that conversion without a fulfillment of
this condition constitutes a breach of the contractual agreement between the
companies.
Shelton Petroleum will contest this breach of contract in order to protect the
interests of the company and its shareholders. The company will keep the market
updated.
For more information, please contact:
Robert Karlsson, CEO, Shelton Petroleum, +46 709 565 141
robert.karlsson@sheltonpetroleum.com
www.sheltonpetroleum.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.
