Shelton Petroleum and Baltic Oil Terminals say that the companies have completed a share swap and entered into a strategic relationship to pursue opportunities in the oil industry. Baltic has today announced a sale of shares in Shelton Petroleum in order to finance an imminent acquisition of a fully operational fuel oil transportation and storage business. As a significant shareholder in Baltic, Shelton fully supports the transaction and looks forward to strengthening and deepening the relationship with Baltic in order to take a further step in its strategy to become an integrated oil and gas company.

The Board of Baltic expects to be able to announce shortly that it has entered into an agreement for the acquisition of a fully operational fuel oil storage business. In order to fund the acquisition, Baltic yesterday sold 46,000,000 B shares of Shelton Petroleum, realising proceeds of SEK 27.6 million before expenses. The Board of Baltic believes this business complements its own trading and transportation operations, will add considerable synergies and will open up new market opportunities. In order to facilitate the sale of the Shelton shares, Baltic has entered into a stock lending agreement with certain substantial shareholders of Shelton, pursuant to which such parties, for no consideration, have loaned the Shelton shares sold.

Shelton retains its shareholding of approximately 19.5 per cent. in the Baltic's issued share capital and Baltic retains a holding of approximately 1.5 % in Shelton's issued share capital.

Robert Karlsson, Chief Executive of Shelton, commented, "We are excited by this acquisition opportunity and believe it offers considerable scope to create value from a new market. We remain committed to a long term strategic relationship with Baltic and, as a significant shareholder, look forward to sharing in their success."

Simon Escott, Chief Executive of Baltic, commented, "Shelton is fully supportive of our expansion strategy and the two companies remain committed to evaluating the strategic opportunities in order to explore ways of developing and strengthening the relationship in the future."

Tags: Baltic Oil Terminals, Shelton Petroleum