Petrogrand’s Board’s Recommends Rejecting Shelton Petroleum’s Public Offer

On 22 January 2014, Shelton Petroleum AB submitted a public offer to the shareholders of Petrogrand.

The Board of Directors of Petrogrand has engaged ABG Sundal Collier Norway ASA “ABG Sundal Collier” for making an independent valuation of Shelton Petroleum AB and its assets. ABG Sundal Collier is considered the leading investment bank in the Nordic region in respect of valuations of companies in the energy sector.

ABG Sundal Collier’s assessment is that Shelton’s offer is inadequate (see appendix).

After review of ABG Sundal Collier’s valuation, the Board of Directors concludes that Shelton Petroleum AB’s offer is substantially lower than an offer that the Board of Directors would recommend. The Board of Directors advises Petrogrand’s shareholders not to accept the offer.