Statement from CEO Robert Karlsson

Production during the third quarter amounted to 860 barrels per day. Excluding a one-off item related to exploration assets, the underlying oil and gas business generated an operating result of SEK 8 million and operating margin of 27 per cent. In order to reflect the increased risk regarding future financial benefit from our interests located offshore Crimea, an adjustment has been made of the carrying value of these exploration assets. Although not affecting cash flow, it reduced the quarter’s operating results by SEK 7 million. Shelton Petroleum’s production in central Ukraine, on the other hand, is stable and unaffected by the recent events in the country.

Step by step Shelton Petroleum is demonstrating that it holds high quality assets in Russia. The cumulative production from the Rustamovskoye field of 400,000 barrels clearly shows that the oil can be produced under high profitability. On the back of the demonstrated commercial value of the field, the recently published reserves update, where total reserves increased from 6 to 41 million barrels, manifests the impact future drillings will have on production and cash flows. In the reserves auditor’s financial model, a peak production of over 7,000 barrels per day could be reached on the Rustamovskoye field alone when the development plan is implemented.

On the adjacent Suyanovskoye license, a recent seismic program has identified three promising structures with estimated recoverable resources of 47 million barrels. Given further success in our exploration efforts, Suyanovskoye may become equally if not more important for us than the successful Rustamovskoye field. Increased oil reserves and resources provide stability and predictability in the planning of further drillings. In addition, they provide better support for investors and lenders, which in turn facilitates financing of field development.

Although the geopolitical events and development of the oil price has affected the oil sector in many ways, I am encouraged by the recent positive results in Russia and committed to further developing Shelton Petroleum.

Publication under Swedish law

Shelton Petroleum is publishing this information in accordance with the Swedish Financial Markets Act (Sw. Lag om värdepappersmarknaden) and/or the Swedish Financial Trading Act (Sw. Lag om handel med finansiella instrument). This information was released for publication on 21 November 2014 at 08:00 CET.

For more information, please contact:

Robert Karlsson, CEO, +46-709565141

robert.karlsson@sheltonpetroleum.com

Shelton Petroleum AB

Swedish corporate identity number: 556468-1491

Hovslagargatan 5B

SE-111 48 Stockholm

Tel: +46 8407 18 50

www.sheltonpetroleum.com

info@sheltonpetroleum.com

About Shelton Petroleum

Shelton Petroleum is a Swedish company focused on exploring and developing concessions in Russia and Ukraine. In Russia, the company holds three licenses in the Volga-Urals area in Bashkiria 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. The Shelton Petroleum share is traded on NASDAQ OMX Stockholm under the symbol SHEL B.