Baltic Oil in equity swap with Swedish oil company

8th Nov 2010 10:36

Baltic Oil Terminals is performing an equity swap with Swedish oil exploration and production company Shelton Petroleum.The UK-listed oil terminals owner is to issue 14.96m shares to Shelton and in return will receive 54m new B shares in Shelton. Effectively, each stake being transferred is valued at about £3.87m.Following the equity swap Shelton will own close to 19.5% of Baltic, and Baltic will own around 10.2% of Shelton.Both companies intend to identify and take advantage of a broad range of joint initiatives, including identifying customers for the supply of crude oil and other products, facilitating suitable transportation and storage services and entering into product swap arrangements. Several opportunities have already been identified and are currently being progressed, the company statement said. "Securing a presence in hydrocarbons transhipment allows Shelton to take a further step in its strategy of becoming an integrated oil and gas company," said Robert Karlsson, chief executive of Shelton.