Shelton Petroleum has initiated a development program in Russia with the
intention to drill up to two new production wells on the Rustamovskoye oil
field in Bashkiria. Shelton Petroleum is pleased to announce that the first
well was spudded today.


“During the past few years, we have added several properties to the Shelton
Petroleum portfolio. In addition to the producing field in Ukraine and the
offshore licenses with vast potential in the Black Sea, we are pursuing the
potential of the Bashkirian fields and we are excited about the spudding of a
new production well. We currently produce a total of 500 barrels per day with
the Rustamovskoye field contributing 200 barrels per day. We are looking
forward to the incremental production the new well may contribute”, says Robert
Karlsson, CEO of Shelton Petroleum.

The new well is a deviated well that will be drilled from the same pad as the
producing oil well RS#2. Planned total depth is approximately 2,500 meters and
the objective is to penetrate the oil-bearing Devonian sandstone formation 800
meters horizontally from RS#2.

Drilling and evaluation of the first well is expected to take up to 90 days.
Later this year, the company will review drilling data and geological
information to develop a new project design on how to optimally target and
extract the pool’s reserves. The new design will encompass the possibility of
horizontal drilling, which given suitable geological conditions, allows for
enhanced well economics.

 

For more information, please contact:

Robert Karlsson, CEO, Shelton Petroleum, +46 709 565 141

robert.karlsson@sheltonpetroleum.com

www.sheltonpetroleum.com

 

About Shelton Petroleum

Shelton Petroleum is a Swedish company focused on exploring and developing
concessions in Russia and the resource-rich basins of Ukraine. The company
holds three licenses in the Volga-Urals area and has commenced production on
the Rustamovskoye field after a successful exploration program. In Ukraine,
Shelton Petroleum’s wholly owned subsidiary has a joint venture with Ukrnafta
and Chornomornaftogaz, two leading Ukrainian oil and gas companies. Shelton
Petroleum is pursuing an integrated business model and holds an equity stake in
Pan European Terminals PLC. The Shelton Petroleum share is traded on NASDAQ OMX
Stockholm under the under the symbol SHEL B.