“The development program is proceeding according to plan and we are excited about the spudding of the new well within a few weeks. We see great potential in our Russian oil licenses and are looking forward to increasing production as well as analyzing and evaluating the results of the drilling later this spring”, says Robert Karlsson, CEO of Shelton Petroleum.

Drilling and evaluation of the first well is expected to take between 60 and 90 days.

Shelton Petroleum currently produces over 500 barrels per day with the Rustamovskoye field contributing approximately 200 barrels per day. The company has entered into a contract that allows it to drill one well with an option to drill an additional well at Rustamovskoye. 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 565141

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 symbol SHEL B.