Petrogrand AB and Gazprom Neft have today entered a cooperation agreement to jointly work for the exploration of the license area Nizhnepaninsky and Muromsky 2.
Gazprom Neft according to the agreement is to finance 100 percent of the exploration activities to be established for the two blocks, including the drilling of wells.
In return, the parties have agreed that Gazprom Neft has an option to acquire 100% of Petrogrand's subsidiary Petrogrand EP LLC and Petrogrand Invest LLC, who owns the respective licenses. The price to be paid for such acquisitions shall be based on the amount of reserves discovered through exploration.
Exploration work is planned to take place during the winter period in 2014/15 and will involve the construction and drilling of new exploration and appraisal wells in the license area Nizhnepaninsky and Muromsky 2.
The final agreement requires approval by the Board of Directors.
This is a translation of the Swedish version. In case of any discrepancy between the English and the Swedish version, the Swedish version shall take precedence.
For further information, please contact:
Maks Grinfeld, CEO, phone: +46 8 5000 7810
Certified Adviser First North: Mangold Fondkommission AB
Reasonable caution notice: The statement and assumptions made in the company's information regarding Petrogrand AB's ("Petrogrand") current plans, prognoses, strategies, concepts and other statements that are not historical facts are estimations or "forward looking statements" concerning Petrogrand's future activities. Such future estimations comprise but are not limited to statements that include words such as "may occur", "concerning", "plans", "expects", "estimates", "believes", "evaluates", "prognosticates" or similar expressions. Such expressions reflect the management of Petrogrand's expectations and assumptions made on the basis of information available at that time.
These statements and assumptions are subject to a large number of risks and uncertainties. These, in their turn, comprise but are not limited to I) changes in the financial, legal and political environment of the countries in which Petrogrand conducts business, II) changes in the available geological information concerning the company's projects in operation, III) Petrogrand's capacity to continuously guarantee sufficient financing to perform their activities as a "going concern", IV) the success of all participants in the group, or of the various interested companies, joint ventures or secondary alliances, V) changes in currency exchange rates, in particular those relating to the RUB/USD rate. Due to the background of the many risks and uncertainties that exist for any oil-prospecting venture and oil production company in its initial stage, Petrogrand's actual future development may significantly deviate from that indicated in the company's informative statements.
