Dear shareholders and other investors in Sweden Natural Assets AB
The past year and the beginning of this year has been very difficult for everyone in our industry. Many if not all exploration companies are in the red due to low oil prices. The low price of the product is that for many, and even brought us lower returns and greater needs of depreciation of the company’s reserves. Another consequence of the low oil prices is that the investments have fallen which has meant that exploration has gone down and that the necessary workovers on certain sources have been postponed.
Many of our industry colleagues in the US have unfortunately gone bankrupt or have found other ways to refinance their operations as so in Sweden.
This has given us a fantastic opportunity to purchase producing fields where the value calculated for these low prices, while obtaining a discount when there are many producing fields into sales.
In order to participate and purchase these discounted rates are Texas Onshore AB (TOS) and Sweden Natural Assets AB (SNA) has for some time developed a three-stage rocket to streamline and refinance activity: Step 1), together with our investors merge project to build a new foundation for the business, Step 2) refinance oil companies, Step 3) purchase of the producing fields. SNA has basically gathered all our projects from the market paid with SNA shares and thereby spread ownership and increased equity, thus is step 1 complete.
To further build the company, we have begun the next step, to refinance the company. We have a little time ago entered into an oral agreement with an investor about 50 million USD, also because we talk with other investors regarding investments in the same order. When the contracts and rights issue is subscribed and paid money, we have reached step 2 for both TOS and SNA. TOS will thus also be financed and can then distribute the SNA shares that the shareholders have decided. Next, it’s step 3, to find oil project to purchase in the United States. We have for some time been active in the industry and have the necessary contacts to buy in the producing fields needed for the development of the SNA and build the platform required to list the company in the near future.
We have been working in head wind for a long time but now it feels like that he uphill approaching its end, and together we can build a profitable oil and gas exploration companies on the Swedish market. Finally we want to thank you for your continued trust and support for building our company.
CEO, Sweden Natural Assets AB