(For complete interim report see attached file)
Significantly strengthened reserves base in Russia1
January - September 2014
• Total revenue for the period: SEK 93 (72) million
• Write-down of exploration assets affects the operating result by SEK -7 (0)
million
• Operating result for the period: SEK 16 (19) million
• Operating result and margin excluding write-down: SEK 23 (19) million, 24%
(26%)
• Basic and diluted earnings per share: SEK 0.71 (0.14)
July - September 2014
• Revenue during the quarter: SEK 29 (26) million
• Write-down of exploration assets affects the operating result by SEK -7 (0)
million
• Operating result during the quarter: SEK 1 (8) million
• Operating result and margin excluding write-down: SEK 8 (8) million, 27%
(32%)
• Basic earnings per share: SEK 0.05 (0.53), Diluted earnings per share: SEK
0.05 (0.30)
┌───────────────┬───────┬───────┬──────────┬──────────┬───────┬───────┬──────┐
│ │ │ │ │ │ │ │ │
│Oil production │Q3 2014│Q3 2013│Q1-Q3 2014│Q1-Q3 2013│ │ │ │
│ │ │ │ │ │2013 │2012 │2011 │
├───────────────┼───────┼───────┼──────────┼──────────┼───────┼───────┼──────┤
│Barrels │79,100 │57,700 │245,537 │156,810 │248,870│177,850│77,300│
├───────────────┼───────┼───────┼──────────┼──────────┼───────┼───────┼──────┤
│Barrels per day│860 │627 │899 │574 │682 │486 │212 │
└───────────────┴───────┴───────┴──────────┴──────────┴───────┴───────┴──────┘
Statement from CEO Robert Karlsson
Production during the third quarter amounted to 860 barrels per day. Excluding
a one-off item related to exploration assets, the underlying oil and gas
business generated an operating result of SEK 8 million and operating margin of
27 per cent. In order to reflect the increased risk regarding future financial
benefit from our interests located offshore Crimea, an adjustment has been made
of the carrying value of these exploration assets. Although not affecting cash
flow, it reduced the quarter’s operating results by SEK 7 million. Shelton
Petroleum’s production in central Ukraine, on the other hand, is stable and
unaffected by the recent events in the country.
Step by step Shelton Petroleum is demonstrating that it holds high quality
assets in Russia. The cumulative production from the Rustamovskoye field of
400,000 barrels clearly shows that the oil can be produced under high
profitability. On the back of the demonstrated commercial value of the field,
the recently published reserves update, where total reserves increased from 6
to 41 million barrels, manifests the impact future drillings will have on
production and cash flows. In the reserves auditor’s financial model, a peak
production of over 7,000 barrels per day could be reached on the Rustamovskoye
field alone when the development plan is implemented.
On the adjacent Suyanovskoye license, a recent seismic program has identified
three promising structures with estimated recoverable resources of 47 million
barrels. Given further success in our exploration efforts, Suyanovskoye may
become equally if not more important for us than the successful Rustamovskoye
field. Increased oil reserves and resources provide stability and
predictability in the planning of further drillings. In addition, they provide
better support for investors and lenders, which in turn facilitates financing
of field development.
Although the geopolitical events and development of the oil price has affected
the oil sector in many ways, I am encouraged by the recent positive results in
Russia and committed to further developing Shelton Petroleum.
Publication under Swedish law
Shelton Petroleum is publishing this information in accordance with the Swedish
Financial Markets Act (Sw. Lag om värdepappersmarknaden) and/or the Swedish
Financial Trading Act (Sw. Lag om handel med finansiella instrument). This
information was released for publication on 21 November 2014 at 08:00 CET.
For more information, please contact:
Robert Karlsson, CEO, +46-709 565 141
robert.karlsson@sheltonpetroleum.com
Shelton Petroleum AB
Swedish corporate identity number: 556468-1491
Hovslagargatan 5B
SE-111 48 Stockholm
Tel: +46 8 407 18 50
www.sheltonpetroleum.com
info@sheltonpetroleum.com
About Shelton Petroleum
Shelton Petroleum is a Swedish company focused on exploring and developing
concessions in Russia and 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. The Shelton Petroleum share is traded on NASDAQ OMX
Stockholm under the symbol SHEL B.
