Acquisition

RNS Number:0575K
Baltic Oil Terminals Plc
06 October 2006


6 October 2006


                      Baltic Oil Terminals PLC ("Baltic")

     Acquisition of 51 per cent of OOO Torgovy Dom Kaliningradneft ("TDKN")


The Directors of Baltic are pleased to announce that, on 5 October 2006, a
wholly owned subsidiary of Baltic entered into an agreement to acquire 51 per
cent of TDKN for a cash consideration of US$360,000 (#191,000). Under the
agreement, Baltic will advance to TDNK a 12 month loan of US$1,000,000
(#531,000), of which US$900,000 (#478,000) will be used to repay existing
shareholder loans. The payment of the consideration and of US$900,000 (#478,000)
of the loan is conditional upon each of TDKN's local operating agreements having
been extended to a new 5 year term.

TDKN, a Russian limited liability company, was formed in 2005 and has an
exclusive agreement with the Russian Naval Authorities to re-furbish and manage
for commercial customers an oil and refined product export transhipment
terminal, located within the Naval base situated in Baltysk, Kaliningrad. The
refurbishment of the facility is substantially complete and the remaining works,
mainly consisting of cleaning and flushing prior to operation, are expected to
cost less than US $100,000 (#53,000), using the balance of the loan by Baltic
referred to above.

The agreement with the Naval Authorities is for a period of five years,
commencing immediately, and is renewable for further periods of five years
thereafter. Under the agreement, TDKN pays a tonnage fee to the Naval
Authorities for the operation of the terminal, although all such operations are
under the control of TDKN supervisory staff.

The Directors expect the first transhipment contract to be signed during October
2006 and commercial operations to commence and shipments to begin in November
2006. They anticipate that the monthly output of the terminal will reach 100,000
tons by May 2007.

In the year ended 31 December 2005, based on unaudited financial statements,
TDKN incurred a loss before taxation of approximately US$184,000 (#98,000),
representing, principally, interest on shareholder loans. At the end of that
year, net liabilities, including shareholder loans of approximately US$1,351,000
(#717,000), amounted to approximately US$83,000 (#44,000).

Baltysk is located on the North Bank of the Pregol River at the entrance of the
channel from the Baltic Sea and approximately 38 kms to the west of Kaliningrad,
where Baltic is presently building its Tetoil transhipment facility.

Simon Escott, Chief Executive of Baltic, commented:

"We are delighted to have acquired a controlling stake in TDKN which will enable
Baltic to increase its export capacity through the strategically important ports
in the vicinity of Kaliningrad and to commence export operations some three
months ahead of the scheduled opening of the Tetoil facility, which continues to
be expected at the end of January 2007.

"Our operational expertise, already proving successful in the operation of the
Baltic Top domestic terminal in Kaliningrad, will ensure that this acquisition
will create value for our shareholders as the export quantities through TDKN are
expected to be significant."




Enquiries

Baltic Oil Terminals PLC                               020 7667 6371
Simon Escott, Chief Executive
Robert Wilde, Finance Director

Arden Partners Limited                                 020 7398 1636
Chris Fielding

Financial Dynamics                                     020 7831 3113
Billy Clegg/Edward Westropp






                      This information is provided by RNS
            The company news service from the London Stock Exchange

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