- Revenue for the period: SEK 0.0 million (10.7)
- Operating result for the period: SEK -5.2 million (-0.7)
- Result for the period after tax: SEK -5.3 million (-1.3)
- Basic and diluted earnings per share: SEK -0.01 (0.00)
Statement from the CEO
The first quarter of 2011 has contained both negatives and positives for Shelton Petroleum. Due to the temporary shut-in of the Lelyaki field in Ukraine, we recorded no revenues during the quarter. On the other hand, we made important progress regarding the development and seismic program in Russia.
Let me start by expressing my disappointment about the development on the Lelyaki field in Ukraine. In October last year Ukrainian authorities recommended us to temporarily halt our production on the Lelyaki field while a review was conducted. Unfortunately it has taken longer to bring the field back on production than we originally anticipated. We are working hard on implementing measures to solve the bureaucratic and administrative elements that are holding us back. Progress has been made and we will make an immediate announcement when the issue has been resolved.
I am very pleased that our strategy in Bashkiriya has proven to be successful. Based on test results and logs from work done during the Soviet era, we have performed selective exploration drilling and confirmed the presence of oil on Rustamovskoye. We are currently designing a development program with production wells that we expect to initiate this summer. A large part of the program will be financed by proceeds from our holding in the refinery in Tomsk. I am looking forward to shortly announcing the development program in more detail once it has been finalized.
Up until last year, focus has been on starting production on Rustamovskoye. During 2011, we have also started to explore the adjacent fields. On the Aysky block, we recently completed a seismic program confirming the field’s excellent potential of over 20 million barrels of oil.
Shelton Petroleum’s near-term priority is to increase production volumes and to generate cash flows from the sale of oil. With proceeds from our holding in the refinery, we will be able to initiate the drilling of production wells on Rustamovskoye. Shelton Petroleum is in terms of oil companies a young company, and a successfully implemented development program will take us to the next level.
(For full report see attached file.)