Shelton Petroleum publishes a prospectus and closes the transaction with Petrogrand

Shelton Petroleum publishes a prospectus and closes the transaction with
Petrogrand, including a fully subscribed new issue of 17,500,000 B
shares, appointment of a new board of directors and a change of the
company name to Petrosibir AB (publ)

Shelton Petroleum and Petrogrand have closed the transaction that was
approved by shareholders’ meetings in both companies on 9 November 2015.
Sonoyta, a previous subsidiary to Petrogrand with assets consisting of
USD 4 million and a 49 per cent interest in Russian oil fields, has been
contributed to Shelton Petroleum in exchange for 17,500,000 newly issued
B shares in Shelton Petroleum. The Swedish Financial Supervisory
Authority has approved a prospectus, available on the company’s webpage,
to allow trade in these shares. In connection with the closing of the
transaction, a new board of directors has been appointed and the company
name has been changed to Petrosibir AB (publ).


As previously announced, Shelton Petroleum and Petrogrand have entered
into an agreement to create a larger combined oil group with Russian oil
assets. Following the transaction, the license portfolio consists of
Shelton Petroleum’s licenses in Bashkiria and Petrogrand’s former assets
in Komi. The combined production amounts to approximately 1,300 barrels
of oil per day and the 2P reserves amount to 32 million barrels of oil.

Petrogrand has contributed all of the outstanding shares in Sonoyta to
Shelton Petroleum. Sonoyta’s assets include USD 4 million and 49 per
cent of the shares in a Cypriot company that in turn has fully owned
Russian subsidiaries holding three production licenses in Komi. In
exchange, Petrogrand has been allotted and subscribed for 17,500,000 B
shares in Shelton Petroleum, making the issue of 17,500,000 B shares
fully subscribed. Through the issue of new shares, the company’s share
capital will increase from SEK 93,306,235 to SEK 180,806,235 and the
number of shares will increase from 18,661,247 (consisting of 761,900 A
shares and 17,899,347 B shares) to 36,161,247 shares (consisting of
761,900 A shares and 35,399,347 B shares). Prior to the transaction,
Petrogrand already held 4,700,000 B shares in Shelton Petroleum. In
accordance with the agreement between the two companies, Petrogrand will
distribute all its 22,200,000 B shares to its shareholders. Distribution
is expected to take place on 22 December 2015.

The Swedish Financial Supervisory Authority has approved a prospectus
for the trading of the newly issued 17,500,000 B shares. The prospectus
in Swedish is attached to this press release and is available on the
company’s webpage www.sheltonpetroleum.com and in the prospectus
register on The Swedish Financial Supervisory Authority’s webpage
www.finansinspektion.se.

The company’s share will be traded on Nasdaq Stockholm’s main list until
4 February 2016. The company has commenced efforts to arrange for
continued trade on a new platform following this date.

As the transaction has now been closed, the new board of directors of
Shelton Petroleum will consist of Björn Lindström (chairman), Hans
Berggren, David Sturt, Sven-Erik Zachrisson and Dmitry Zubatyuk.

The name of the company will in accordance with the decision of the
shareholders’ meeting change to Petrosibir AB (publ). It is expected
that the new name will be registered at the Swedish Companies
Registration Office on 17 December 2015.

 

For more information, please contact:

Shelton Petroleum, tel +46 8 407 1850

www.sheltonpetroleum.com

 

About Shelton Petroleum

Shelton Petroleum is a Swedish company focused on exploring and
developing concessions in Russia. Shelton Petroleum’s Ukrainian
operations have been distributed to its shareholders. The company holds
licenses in the Russian republics of Bashkiria and Komi. Shelton
Petroleum’s 2P oil reserves amount to 32 million barrels. The company’s
share is traded on Nasdaq Stockholm under the symbol SHEL B until 4
February 2016. The company will arrange a new trading platform so that
the share can be traded also following that date.

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 8:30 CET on 17 December 2015.

 

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