Petronav Carriers LLC., a subsidiary of Petrogress, Inc., entered in final negotiations for acquiring interest in two tankers ships!
Petrogress, Inc. announced that its wholly-owned subsidiary, Petronav Carriers LLC (“Petronav”), has reached an understanding in principle with owners of the two product carriers vessels (tankers), Petronav to acquire 50% ownership interest on both vessels in exchange for a cash payment of $1,300,000, to be paid by Petronav within 6 months after the closing. In addition to the purchase payment, Petronav will deposit $500,000 upon execution of the definitive agreement as contribution for the vessels’ dry-docking expenses. Petronav will also have the option to buy an additional 15% interest in the two vessels within the next 12 months by paying another $half million.
The capacity of the vessels is 10,000 tons and 6,000 tons, respectively, and both vessels are in West Africa. Petronav anticipates execution of a definitive agreement within the next few weeks, provided the extra liquidity that Petronav needs has been raised. At that time, Petronav will undertake the management and operation of both vessels who will join the existent Petronav fleet.
The present market value of both vessels in this location is estimated at approximately $4.8 million with an estimated remaining trading life of approximately eight to ten years. Period-daily charter rates of similar vessels in the area is $6,500 and $4,500 for each vessel respectively.
By purchasing half ownership and taking over the management of both vessels, Petronav management intends to use the 10,000 tonnage as a storage ship off-shore Ghana where Petrogres will storage-gather its crude oil and will employ the second 6,000 tonnage for Petrogres Gas Oil shipments/sales. Once the vessels are ready for trade, the Company anticipates an increase in assets and revenues.
About Petronav Carriers LLC.
About Petrogres Co. Limited
Subject to the final conclusion the regular 8K form will be filed with SEC