Shelton Petroleum is pleased to announce that it has successfully completed its RS#2 well in Bashkiria. First oil production from three meters of perforations over the Devonian Kynovsko–Pashiyski zone commenced at a restricted rate of 158 barrels of oil per day. The well will gradually be optimized to its full potential over the coming weeks.
"This well completion and first Russian oil production is an extremely significant milestone for Shelton Petroleum and validates the future development potential of the 52 square kilometer Rustamovskoye License. To further increase production rates already this year, we have also commenced completion of the other successful exploration well RS#1. Further development drilling activity to significantly enhance produced volumes from the project will take place in 2011," says Robert Karlsson, CEO of Shelton Petroleum.
Earlier this year, Shelton Petroleum successfully completed the exploration program on Rustamovskoye. The Rustamovskoye license is now being converted into a production license. Initial oil production will be stored until the new license has been received. Shelton Petroleum also holds the two adjacent licenses Aysky (187 square kilometers) and Suyanovskoye (300 square kilometers). Soviet drillings on these blocks have confirmed the presence of hydrocarbons. The company is currently designing a work program to further define drill targets for the multizone oil potential of this region of the Volga Urals basin.
For more information, please contact:
Robert Karlsson, CEO, Shelton Petroleum, tel +46 709 565 141
Zenon Potoczny, President, Shelton Petroleum, tel. +1 416 566 7163
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 found oil in its first two wells and measured commercial flow rates. 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. 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.