Agreement to dissolve the cross-ownership with Petrogrand


Shelton Petroleum and Petrogrand have entered into an agreement to dissolve the
cross-ownership between the companies through a share swap. The exchange ratio
is 0.40 shares in Shelton Petroleum for each share in Petrogrand. The agreement
is subject to shareholder resolution at general meetings in both companies.
Dissolving the cross-ownership will enable the companies to focus on developing
their respective license portfolios on their own.  


“The agreement to be brought forward to the shareholders puts an end to the
strenuous cross-ownership between the companies. It enables Shelton Petroleum
to focus on developing the company and its license portfolio. There is great
potential in the current production from the company’s proven assets, which is
evidenced by the recent reserves update that significantly increased the
company’s oil reserves,” says Robert Karlsson, CEO of Shelton Petroleum.

Shelton Petroleum holds 11,585,308 shares in Petrogrand, equivalent to 29% of
the capital and votes. Petrogrand owns 4,900,563 B-shares in Shelton Petroleum,
equivalent to 26% of the capital and 19% of the votes. The agreement and
proposal to the shareholders entails a swap of the holdings at an exchange
ratio of 0.40 B-shares in Shelton Petroleum for each share in Petrogrand. The
exchange ratio based on yesterday’s closing price was 0.43 and the average
ratio based on the volume weighted share price for the last thirty days is
0.37.

Following the share swap, Shelton Petroleum will not hold any shares in
Petrogrand and Petrogrand will hold 266,440 B-shares in Shelton Petroleum,
equivalent to 2% of the capital and 1% of the votes. The board of directors in
Shelton Petroleum will propose that the shareholders resolve to cancel the
4,634,123 B-shares in Shelton Petroleum that the company receives in the swap.
Following the cancellation of shares, the total number of A-shares and B-shares
will amount to 14,027,124, which corresponds to a 25% reduction of the number
of shares.

The financial result of the transaction will be included in Financial Items in
the profit and loss statement. The result will be calculated as the difference
between the market value as of the day of the exchange at the end of January
2015 of the Shelton Petroleum shares received and the acquisition value of the
current holding in Petrogrand.

In light of the above, the board of directors shortly intends to call for an
extra general meeting in Shelton Petroleum to be held in the end of January
2015. The proposal, board’s report on the proposal and a fairness opinion will
be made available at the company’s head office and on the company’s website
www.sheltonpetroleum.com no later than three weeks prior to the general
meeting.

 

Shelton Petroleum AB (publ)

The Board of Directors

 

For more information, please contact: Robert Karlsson, CEO, Shelton Petroleum,
+46 709 565 141 robert.karlsson@sheltonpetroleum.com www.sheltonpetroleum.com

 

About Shelton Petroleum

Shelton Petroleum is a Swedish company focused on exploring and developing
concessions in Russia and Ukraine. In Russia, the company holds three 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. The Shelton Petroleum 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 08.30
on 19 December 2014.

This is an English translation of the Swedish original. In case of
discrepancies, the Swedish original shall prevail.

Attachments

PR_141219___Agreement_to_dissolve_cross_ownership_with_Petrogrand_c5bac.pdf