Shelton Petroleum provides an update on the extraordinary general meeting in
Shelton Petroleum and Petrogrand and the operations in Ukraine
Extraordinary general meeting in Petrogrand
Shelton Petroleum (Shelton) holds approximately 25 per cent of the shares in
Petrogrand. Shelton has in a letter, which was delivered to the board of
Petrogrand on 19 March 2014, requested that Petrogrand gives notice to an
extraordinary general meeting as soon as possible but no later than 2 April
2014, in order for the shareholders to appoint a new board in Petrogrand.
Shelton will hold a dialogue with other shareholders in Petrogrand in order to
create a board composition that will serve the interests of the shareholders
and create value in the company.
Extraordinary general meeting in Shelton Petroleum
In a letter dated 18 March 2014, Petrogrand claimed to own more than the
required 10 per cent of the shares in Shelton Petroleum, and on the basis of
this Petrogrand requested that the board in Shelton gives notice for an
extraordinary general meeting. Following that, Petrogrand has informed Shelton
about its shareholding at the time of the request. The board in Shelton notes
that the number of shares that Petrogrand owns is lower than the 10 per cent
required to request an extraordinary general meeting. Shelton will therefore
not give notice for an extraordinary general meeting based on the request.
Shelton Petroleum’s operations in Ukraine
Shelton Petroleum’s operations in Ukraine consist of two joint ventures. The
producing Lelyaki oil field is part of a joint venture between Shelton
Petroleum’s wholly owned subsidiary Zhoda 2001 Corporation and Ukrnafta,
Ukraine’s largest oil and gas company. The daily operations at the Lelyaki oil
field have not been affected by the recent political events in Ukraine.
Shelton Petroleum’s wholly owned subsidiary Shelton Canada Corp is party to a
Joint Investment Agreement (JIA) with Chornomornaftogaz (CNG) regarding three
licenses in the Azov Sea and Black Sea to which CNG is the license holder.
Following a referendum on 16 March 2014, Crimea has declared independence from
Ukraine and requested to be part of the Russian Federation, which has been
granted by the Russian President and the Russian Parliament. The new Crimean
Prime-minister has declared that the CNG interests on Crimea will be
nationalized by the Crimean Republic. It has been reported that private
interests and agreements will be respected. Neither the referendum nor the
nationalization of CNG, which is in violation of the Ukrainian constitution,
has been recognized by the government in Kiev or the Western community.
Due to the events described above, the board of directors of Shelton Petroleum
perceives an increased risk regarding potential future financial benefit from
the JIA with CNG. This JIA accounted for 0 per cent of Shelton Petroleum’s
revenue and profit for 2013 and approximately 2 per cent of total assets in the
balance sheet as of 31 December 2013.
For more information, please contact:
Robert Karlsson, CEO, Shelton Petroleum, +46 709 565 141
robert.karlsson@sheltonpetroleum.com
www.sheltonpetroleum.com
The information provided herein is such that Shelton Petroleum AB is obligated
to disclose it pursuant to the Securities Markets Act (2007:528) and the
takeover-rules. The information was submitted for publication at 08:45 (CET) on
25 March 2014.
About Shelton Petroleum
Shelton Petroleum is a Swedish company focused on exploring and developing
concessions in Russia and the resource-rich basins of 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, two leading Ukrainian oil and gas
companies. The Shelton Petroleum share is traded on NASDAQ OMX Stockholm under
the symbol SHEL B.
