Petrogrand: Continues to Rebuff Shelton Offer as Under Valued

The acceptance period of Shelton Petroleum’s AB offer to Petrogrand AB’s shareholders expired on 28 March 2014. Only 3.4 percent of the shareholders in Petrogrand chose to accept the Offer after the acceptance period was extended and the Offer was raised from 0.34 to 0.44 Shelton Petroleum B-shares for each share in Petrogrand.

The Board of Petrogrand believes that the conditions for Shelton Petroleum’s offer has not improved for the shareholders of Petrogrand, as no response has been provided by Shelton Petroleum regarding the uncertainties pointed out and questioned by Petrogrand in previous press release from 10 March 2014.

The share price of Shelton Petroleum has fallen since the announcement of the Offer. On 2 April 2014 the closing price was SEK 18.30 per Shelton Petroleums-B share. The closing price in Petrogrand on the same date, on 2 April 2014 was SEK 8.90. The Offer of 0.44 Shelton Petroleum B shares for each share in Petrogrand values the share of Petrogrand to approximately SEK 8.05, which corresponds a discount of approximately 9.5 percent compared to the closing price of 8.90 on 2 April 2014.

Accordingly, the Board has unanimously decided to once again, for reasons stated in previous statements, recommend that the shareholders of Petrogrand do not accept the Offer, which is verified by the independent fairness opinion that was made by ABG Sundal Collier.