Shelton Petroleum presents a geologic update on its Russian oil fields

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| Source: Shelton Petroleum AB
multilang-release
Shelton Petroleum today announces a geologic update on its Russian oil fields.
The objective of the update is to present how the company’s view on the fields
has changed after the positive drilling results of the most recent well. CEO
Robert Karlsson will host a webcasted conference call today at 11.00 CET. A
presentation of the update is attached to this press release as a pdf file.

 


Combination of proven oil and exploration upside

Shelton Petroleum has since 2007 successfully been pursuing oil exploration and
production at the company’s three license blocks in the Russian republic of
Bashkiria. The company has found oil and commenced production from four out of
four drilled wells on the Rustamovskoye field. The most recent well evidences
substantial field potential for increased production. In addition, there is
significant exploration upside on the company’s two adjacent license areas,
Aysky and Suyanovskoye, where several wells were drilled and oil was
encountered during the Soviet era.

 

The most recent #12 well on Rustamovskoye is a possible game changer

As previously announced, the new well encountered significantly higher net pay
and has reached substantially higher flow rates compared to the previous wells.
In addition, the oil-bearing formation came in deeper and significantly
extended the known oil column and size of the reservoir. Information from the #
12 well shows that the structure extends to the southeast and into the
neighboring Aysky license.

 

Significant increase in reserves expected in the next reserves report

The latest independent Western reserves audit for Shelton Petroleum's Russian
licenses was completed in September 2009 and does not take into account the
recent successful drillings. The findings from well #12 have resulted in a new
interpretation of the area as well as the net pay. This may lead to a
significant increase in reserves and resources in future audits.

 

Investing to increase production

  • Shelton Petroleum is planning to include horizontal wells in the next
    drilling campaign. Industry averages show that these wells provide 85 per
    cent higher cumulative production than vertical wells. Despite being more
    expensive, horizontal wells have higher paybacks than vertical wells due to
    on average 3.5 times higher initial production.
  • Shelton Petroleum is currently investing SEK 20 million in scalable oil
    facilities on the Rustamovskoye field in order to improve efficiency in the
    handling of current and expected future oil production. The investment
    includes gathering, measurement, separation and storage of crude oil.
    Initial capacity is slightly less than 2,000 barrels per day and can be
    scaled up with minor investments. The facilities will also serve as a hub
    for future production from the Aysky and Suyanovskoye oil fields.

 

CEO Robert Karlsson will host a webcasted conference call today at 11.00 CET.
Participants will be able to submit questions via the webcast and follow the
presentation material live. An on demand version will also be available on the
company’s website www.sheltonpetroleum.com. To participate in the conference
call, and thereby be able to ask questions, please call one of the following
numbers:

 

Sweden: +46850598261

UK: +442033645372

Link to webcast: http://financialhearings.nu/140212/sheltonpetroleum/

 

Attachment: Shelton Petroleum Geologic Update (pdf)

 

For more information, please contact: 

Robert Karlsson, CEO, Shelton Petroleum, +46 709 565 141
robert.karlsson@sheltonpetroleum.com

www.sheltonpetroleum.com

 

Facts about Shelton Petroleum Shelton Petroleum is a Swedish company focused on
exploring and developing concessions in Russia and the resource-rich basins of
Ukraine. In Russia, the company holds three licenses in the Volga-Urals area in
Bashkiria 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. The Shelton Petroleum share is traded on
NASDAQ OMX Stockholm under the under the symbol SHEL B.