Stockholm, 2015-03-25 21:10 CET (GLOBE NEWSWIRE) --
On Thursday 26 March 2015 detailed information about the acquisition of Ripiano Holdings Limited (“Ripiano”) will be presented at the Financial Hearings event at Operaterassen, Karl XII:s torg. The presentation is available in full on Petrogrand’s website www.petrogrand.se.
- 10 MUSD will be invested in 3 wells in the Dinuy-Savinoborskoe oil field as well as 3 wells in the Sosnovskoe oil field
- The Board of Ripiano will consist of 7 directors including 3 directors from the current board in Petrogrand
- The current EBITDA (net back) amounts to about 8 USD per barrel
- Of the total purchase price of 21.5 MUSD, 11.5 MUSD will be used to pay back the Ripiano Group’s combined debts
Ripiano has two Russian subsidiaries, Dinyu LLC and CNPSIE LLC. The two subsidiaries operate three license areas in the Komi region and have a current oil production output of over 1,600 barrels per day (>220 tons) from 26 production wells.
An estimation of the reserves was made in June 2014 and was made according to Western SPE criteria. According to the estimation the total proved “1P” reserves amount to about 15.40 million barrels (about 2.11 million tons) and Proved+Probable “2P” reserves of about 18.25 million barrels (about 2.50 million tons).
10 MUSD will be invested in 3 wells in the Dinuy-Savinoborskoe oil field and 3 wells in the Sosnovskoe oil field. The expected result of this investment is an increase of average production in 2015 to 2,200 barrels a day. Additional investment funds are being considered by way of loans from Petrogrand to Ripiano to accelerate the investment rate and take advantage of the current favorable prices for different services in the Russian market. The Board of Ripiano will consist of 7 directors including 3 directors from the current board in Petrogrand. A joint operations agreement between the two owners’ management companies will be signed to provide combined expertise.
The current EBITDA (net back) amounts to about 8 USD per barrel.
Of the total purchase price of 21.5 MUSD, 11.5 MUSD will be used to pay back the Ripiano group’s combined debts. The remaining debts after the completed transaction will amount to 13.5 MUSD which consist of debts to the company’s shareholders.
For further information, please contact:
Maks Grinfeld, CEO, phone: +46 8 5000 7810
Certified Adviser First North: Mangold Fondkommission AB, phone: +46 8-503 01 550
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.
