NEW YORK, NY--(Marketwired - Dec 6, 2016) - Petrogress, Inc. ( OTC PINK : PGAS ) ("Petrogress" or the "Company"), a fully integrated oil commodity business that primarily serves West Africa and the Mediterranean, today announced that its wholly owned subsidiary, Petronav Carriers LLC, has reached an understanding in principle to acquire a 25% interest in West Africa Fenders Ltd., ("WAF"), an operator of Ship-to-Ship (STS) services in West Africa. Twenty-five percent of West Africa Fenders Ltd. common stock will be exchanged for cash and common shares of Petrogress Inc., valued at $350,000. The Definitive Agreement is expected to be signed by December 31, 2016.
West African Fenders is a world class marine company that provides Ship-to-Ship transfer marine services to targeted business environments in Africa with the long-term goal of expanding into regions of other continents where there is a growing need for marine services. Founded in 2014, management has combined experience of over 32 years in international STS operations, upstream marine services and logistics and shipping and was founded to provide high quality services at competitive rates. Current assets are approximately $7.5 million; annualized revenue exceeds $3.5 million.
"West African Fenders is a great strategic fit with Petrogress's expanding service offerings," said Christos Traios, CEO of Petrogress, Inc. "We view this acquisition as the first step in strategically investing additional capital to expand our STS services, which serve a crucial role in the efficient operation of oil assets. Upon signing of the definitive agreement, Petronav will contribute additional cash and assets to immediately expand West African Fenders STS operations."
About Petrogress, Inc. Petrogress Inc. operates a fully integrated oil commodity business, including upstream, midstream and downstream operations, primarily serving West Africa and the Mediterranean. The Company operates primarily as a holding company and provides its services through three wholly owned subsidiaries: Petrogres Co. Limited, which provides management of crude oil purchases and sales; Petronav Carriers LLC, which manages day-to-day operations of the tanker fleet currently consisting of four vessels; and Petrogress Oil & Gas Energy Inc., which is primarily focused on purchasing interests in oil fields in Texas and exporting liquefied natural gas.
The Company's main operations are managed by an experienced team, located in Piraeus, Greece. By combining regional market knowledge and excellent service to its customers, along with more than 25 years of experience in shipping and ship management, its core business has earned a reputation for reliably marketing and moving petroleum products.
For more information, please visit our website: www.petrogressinc.com
Forward-Looking Statements Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are based on our current expectations and beliefs and are subject to a number of risk factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such risks and uncertainties include, without limitation, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for tanker shipping capacity, changes in our operating expenses, including oil prices, dry-docking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Petrogress does not undertake an obligation to update or revise any forward-looking statement. Investors should read the risk factors set forth in the Annual Report on Form 10-K for the year ended December 31, 2015, as filed with the Securities and Exchange Commission (the "SEC") on April 19, 2016 and future periodic reports filed with the SEC on or after the date hereof. All of Petrogress' forward-looking statements are expressly qualified by all such risk factors and other cautionary statements. The information set forth herein speaks only as of the date hereof.