Petronav Carriers LLC., -- a Subsidiary of Petrogress, Inc. (the Integrate Commodity and Maritime Company), Entered Into Final Negotiations for Acquiring Interest in Two Tanker Ships
Petrogress Inc.25 minutes ago
LOS ANGELES, CA--(Marketwired - June 06, 2016) - Petrogress, Inc. (OTC PINK: PGAS) or ("the Company") (www.petrogressinc.com), 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 $1,800,000, 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 $5.5 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.
As result of the proposed acquisitions, Petronav will seek additional financing and/or capital investment to fund its proposed operations.
About Petronav Carriers LLC.
Petronav Carriers llc., is a wholly-owned Subsidiary of Petrogress, Inc.
Petronav formed to manage the day-to-day operations and the handling of the existent four tankers ships. Petronav management team is based in Piraeus and include several executives with extensive experience in maritime sector and shipping operations. Petronav's fleet provides Ship-to-Ship (STS) and/or Midstream services in the areas where Petrogres Co. Limited is active and trade its Petroleum products giving the flexibility to Petrogres to work as an integrated company moving its products under control from the supply place up to destination or creating more income from third sources by employing part of the fleet to third parties -- independent charterers.
About Petrogres Co. Limited
Petrogres Co. Ltd, is also a wholly-owned subsidiary of Petrogess, Inc.
Petrogres is an international merchant of petroleum Products Company, specializing in crude oil and refined products trade within West Africa and Mediterranean Countries. The Company procures its products from refineries, crude oil suppliers and traders and then deploys the tanker vessels that managed by the sister Company Petronav, which use for the shipping of its products to designated destinations mostly in West Africa where resell the product to its customers. Petrogres has extensive experience performing complex freight movements and liquid cargoes logistics, by providing innovative solutions to its customer's requirements. Petrogres management is comprised of experienced professionals in oil industry.
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