Dec 2011
Outcome of exchange of convertible bond

As previously announced the Board of Shelton Petroleum has resolved to offer the holders of convertible bond 2009/2011, maturing on 31 December 2011, to exchange the bond in the amount of SEK 29 520 thousand with a new bond by subscribing to the new convertible bond by no later than 6 December 2011. The subscription to the new convertible bond amounted to SEK 22 650 thousand, which is equivalent to 77 per cent of the old bond. The company has extended the subscription period to provide certain investors with time to respond to the offer, which they for administrative reasons have not been able to do. The difference between the nominal value of the old convertible bond and the amount subscribed to in the new bond will be repaid at the end of this year. The new convertible bond matures on 31 December 2013 and carries an interest of 10 per cent and has a conversion rate of SEK 16. At full conversion of the new convertible at the current subscription level, 1 415 625 new B-shares would be issued, which corresponds to a dilution of 11.74 per cent.

To the extent that the subscribers in the issue of the new convertible bond are subject to the rules in Chapter 16 of the Companies Act, an approval is required at the extra general meeting on 13 December 2011. For more information see the notice to the extra general meeting distributed on 21 November 2011.

For more information, please contact:

Robert Karlsson, CEO, Shelton Petroleum, tel +46 709 565141



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 an 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.