Commences operations in Ukraine
The company is an early mover and one of the first Western companies to enter the Ukrainian oil and gas market. Under the name Shelton Canada Corp, listed on the Toronto Venture Exchange, the company signs a Joint Investment Activity agreement (50%/50%) with National Stock Company Chornomornaftogaz, Ukraine’s leading offshore gas company, regarding the development of oil and gas deposits on the Azov Sea and Black Sea shelf. The Biryucha license is the first to be included into the JIA.
Drills an offshore well in the Azov Sea
Following in-depth geophysical and other studies, the parties drill an exploration and appraisal well on Biryucha to a total depth of 1,700 meters. Thick reservoir quality sandstone horizons of up to 60 meters were identified containing small volumes of gas.
Expands through acquisition of a producing oil asset
The company enters into a corporate transaction and acquires Zhoda 2001 Corporation with 45% working interest in the Lelyaki oil field and a production of 270 barrels per day net to the company. As part of the transaction, the company focuses exclusively on the Ukrainian market by divesting its Canadian oil and gas assets. The company drills its first production well and upgrades the 2P reserves to 8.7 million barrels net.
The North Kerchenskoye license in the Azov Sea is added to the JIA giving the company fifty per cent participation.
Business combination and listing in Sweden
The company enters into a business combination with the Swedish exploration and production company Petrosibir with oil assets in Bashkiria. The name is changed to Shelton Petroleum AB and the shares are listed on the stock exchange in Sweden.
A new well is drilled on Lelyaki and the Arkhangelskoye license in the Black Sea is added to the JIA.
Successful drilling program and corporate transactions
The company drills exploration and appraisal wells on the Bashkirian assets and reaches a production level exceeding 500 barrels per day. The production on Lelyaki is temporarily suspended. Investments are made into Baltic Oil Terminals and Tomsk Refining. These shareholdings are divested generating a healthy profit and cash injection for further development drilling.
Reaches a milestone of 1,000 barrels per day
Following successful development drilling, the company significantly boosts production to reach over 1,000 barrels per day. As a result of the increased production, the company increases its turnover to over SEK 100 million and reports operating income in the amount of SEK 30 million.
Significant reserves upgrade to 42 million barrels of 2P
The company is able to increase its reserves in Bashkiria by a factor of seven, giving a total of 42 million proven and probable barrels of oil. The geopolitical development in Crimea increases the risk regarding future financial values of the assets situated offshore outside the Crimea. The onshore production in central Ukraine is stable and unaffected by the events. Following a period of conflicts with Petrogrand, the companies enter into a business transaction that entails a spin-off of the Ukrainian assets under the name Zhoda Petroleum Ukraine.
Adopts the new name Zhoda Investments and widens its business operations
In October 2016, the shareholders resolved to widen the business operations and strenghten the capital base through a rights issue. The new name Zhoda Investments was adopted.