The Board of Baltic expects to be able to announce shortly that it has entered into an agreement for the acquisition of a fully operational fuel oil storage business. In order to fund the acquisition, Baltic yesterday sold 46,000,000 B shares of Shelton Petroleum, realising proceeds of SEK 27.6 million before expenses. The Board of Baltic believes this business complements its own trading and transportation operations, will add considerable synergies and will open up new market opportunities. In order to facilitate the sale of the Shelton shares, Baltic has entered into a stock lending agreement with certain substantial shareholders of Shelton, pursuant to which such parties, for no consideration, have loaned the Shelton shares sold.

Shelton retains its shareholding of approximately 19.5 per cent. in the Baltic’s issued share capital and Baltic retains a holding of approximately 1.5 % in Shelton’s issued share capital.

Robert Karlsson, Chief Executive of Shelton, commented:

"We are excited by this acquisition opportunity and believe it offers considerable scope to create value from a new market. We remain committed to a long term strategic relationship with Baltic and, as a significant shareholder, look forward to sharing in their success."

Simon Escott, Chief Executive of Baltic, commented:

"Shelton is fully supportive of our expansion strategy and the two companies remain committed to evaluating the strategic opportunities in order to explore ways of developing and strengthening the relationship in the future."

For more information, please contact:

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

robert.karlsson@sheltonpetroleum.com

www.sheltonpetroleum.com

Please visit www.balticpetroleum.com for more information on Baltic.

Further Information on Baltic Oil Terminals

Over the last four years, Baltic has built up a terminals business in the Russian ports of Baltysk and Kaliningrad. A separate enclave located between Poland and Lithuania, Kaliningrad is Russia's only year round access to the Baltic Sea. Other ports in the region, such as St Petersburg, are frozen for much of the winter, as are many rivers, including the Volga River, one of the most significant commercial waterways in the world. As Russia relies on year round export of its vast supplies of petroleum products, Kaliningrad is thus a trading centre of major strategic importance.

Baltic's key asset is a 50% interest in the Rosbunker terminal, which is located at Baltysk, right on the Baltic Sea at the mouth of the Pregol River leading into Kaliningrad. It is the only port in the region at which all types of ship can take on cargo, as the channel into Kaliningrad is too shallow for many vessels. Trains are able to deliver products from all over Russia, the Former Soviet Union and Asia directly to the terminal.

Since 2007, the Rosbunker terminal has been handling consignments of oil refined products, specialising in fuel oil (mazut), a product that requires heating and special equipment and as such is not handled by other terminals in the area.

Baltic earns tolling fees for processing the unloading of cargo from trains into storage tanks and then onto vessels. Baltic is also able to trade in these products in its own right, taking advantage of local price differences. Since the financial crisis in Russia, this market has become increasingly interesting to Baltic. Baltic's transportation and trading activities utilises its extensive network of industrial partners and refineries.

In addition to Rosbunker, Baltic also has interests in several other oil product assets in Kaliningrad, which derive revenues through processing and distribution of oil products to domestic markets.

Baltic's executive management have a wealth of experience of the oil services industry. The team has worked in the industry for more than 40 years, constructing and operating oil rigs, terminals and other infrastructure in world-wide locations, including the Former Soviet Union.

Baltic has been listed on AIM since May 2006. It is headquartered in Kaliningrad, with a small representative office in London.

About Shelton Petroleum

Shelton Petroleum is a Swedish company focused on exploring and developing concessions in the Volga-Urals area in Russia and the resource-rich basins of Ukraine. Shelton Petroleum has built effective personal relationships, strategic regional partnerships and a portfolio of projects onshore and offshore. The company holds three licenses in the Russian republic of Bashkiria, located southwest of the Ural Mountains. The license blocks, which border one another, have an area of over 500 square kilometers and are surrounded by other producing oil fields. The company has commenced production from one of its two successful exploration wells in Russia. In Ukraine, Shelton Petroleum’s wholly-owned subsidiary Zhoda 2001 has a strategic partnership with Ukrnafta, Ukraine's largest oil and gas company. It provides Shelton Petroleum with a stake in the oil producing Lelyaki field in Chernigov Region close to Poltava. Shelton Petroleum also has a Joint Investment Agreement with Chornomornaftogaz, the leading Ukrainian oil and gas company in offshore development, that gives it a fifty per-cent stake in three major license areas in the Azov and Black Sea regions. Shelton Petroleum is a substantial shareholder in Tomsk Refining and Baltic Oil Terminals. The Shelton Petroleum share is traded on the NGM stock exchange under the under the symbol SHEL B. The company has applied for a listing of its share on NASDAQ OMX Main Market.