Petrogress, Inc. (OTC:PGAS) announces that its Petrogress Int’l, LLC (“PIL”) subsidiary has entered into a Memorandum of Understanding and a Partnership Agreement with A&E Petroleum Co. Limited, a Nigerian corporation (“A&E Petroleum”) to jointly form and co-operate a corporation to be named P&A Nigeria Oil Co. Ltd. (“PANOC”) to engage in oil and gas business opportunities in Nigeria. PANOC is expected to engage in operation of storage tank facilities, supply, sea transportation, distribution and sale of gas oil and other petroleum products, including crude oil originated in Nigeria.
A&E Petroleum is the current owner and operator of the storage tank facilities to be operated by PANOC. The Partnership Agreement anticipates that PIL and A&E Petroleum will contribute to the capital and own 55% and 45% of PANOC, respectively. PANOC is expected to lease or charter freight motor tankers and barges to facilitate the transportation of petroleum products to the Nigerian storage tanks and facilitate the purchase sale and distribution of such products.
In furtherance of the proposed business of the PANOC, Petrogress plans to seek financing of up to $5 million to facilitate planned capital requirements.
“Our partnership with A&E Petroleum is an excellent opportunity for Petrogress to expand its operations into and serve the Nigerian market. Our companies’ combined facilities, assets and services are not only expected to provide for enhanced revenue streams, but also ensure our future in this important international market,” stated Petrogress Chief Executive Officer Christos P. Traios.