Nov 2011
New well spudded at the Lelyaki oil field in Ukraine

Shelton Petroleum and its partner Ukrnafta have recently commenced drilling operations on a new well on the Lelyaki oil field in Ukraine. The new well is part of the ongoing work program to pursue the potential of the field. In addition, following the reinstatement of production, the field operator has been able to complete and start production of well 304A, drilled in 2010.

Drilling operations on the new well 309 on the Lelyaki oil field in Ukraine has recently started. The field operator Kashtan Petroleum expects that this well will take approximately 90 days to drill and complete. The close proximity to infrastructure enables a rapid tie-in of the well without major investments.

The new well is part of the ongoing work program to pursue the potential of the Lelyaki oil field. The well is targeting production from the Permian and Carboniferous zones. In addition to the new well being drilled, the operator has assembled a work over crew dedicated to a program of suspended well interventions and future sidetrack drilling. This work is designed to increase the low cost production volumes from the oil field.

“We are pleased to announce concrete steps in the further development of the Lelyaki oil field. We will increase production volumes and strengthen our cash flow going forward,” says Robert Karlsson, CEO of Shelton Petroleum.

In addition, following the reinstatement of production in early September, the company has been able to complete well 304A, originally drilled in 2010. It has contributed 77 barrels of oil per day in its first week of production, giving a production of 35 barrels per day net to Shelton Petroleum. The well was recompleted for production from the Permian P1 and P2 zones. Auction procedures and the Ukrainian oil price in relation to royalty make oil production attractive in Ukraine.

Shelton Petroleum holds a 45% interest in the Lelyaki oil field (Kashtan Petroleum) through its wholly-owned subsidiary Zhoda 2001 Corporation. Ukrnafta, Ukraine’s largest oil and gas company, owns the remaining 55%.

For more information, please contact:

Robert Karlsson, CEO, Shelton Petroleum, tel +46 709 565141 robert.karlsson@sheltonpetroleum.com

Zenon Potoczny, President, Shelton Petroleum, +1416566 7163



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 has acquired a significant equity stake in Baltic Oil Terminals PLC, an AIM listed company with a terminals and transshipment business in Kaliningrad on the coast of the Baltic Sea. The Shelton Petroleum share is traded on the NGM stock exchange under the under the symbol SHEL B.