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Nanes Balkany Partners supports Shelton Petroleum’s increased offer for Petrogrand

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New York-based activist hedge fund Nanes Balkany Partners I, a shareholder of Petrogrand AB, is supporting Shelton Petroleum's increased offer for Petrogrand.

On 14 March 2014, Shelton announced an increase of the consideration offered from 0.34 to 0.44 Shelton B shares for each Petrogrand share. The acceptance period is up to and including 28 March 2014 CET 17.00. 
Nanes Balkany Partners built a significant position in Petrogrand in 2013 and began a public campaign in April 2013 urging Petrogrand's board to close the major disconnect between Petrogrand's historically depressed share price and the value of its cash and to take steps to restore value for all its shareholders.
Julien Balkany, managing member and chief investment officer of Nanes Balkany Partners, says: "I strongly believe that Shelton's offer is in the best interest of all Petrogrand shareholders. Shelton has a valuable portfolio of oil and gas assets and we are confident that under its leadership, with the addition of Petrogrand cash to develop it, the enlarged entity will be extremely well positioned for future value creation and to pursue opportunities in new countries.
"The revised bid in our view is very attractive and clearly represents fair value for Petrogrand. Through the combination of complementary asset bases, the combined entity will create a solid regional platform generating revenues, compounding production growth and offering material upside along with a very credible management and board. It is my belief that Shelton will use the additional cash to expand out of Russia and Ukraine and build up a more balanced and diversified portfolio of producing assets in less risky geographical areas. We look forward to working constructively and diligently with Shelton Petroleum towards our common objective of maximizing value for the shareholders of both companies."

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