4
Oct 2012
Production report for September and the third quarter 2012

Shelton Petroleum’s total oil production in September amounted to 17,300 barrels, equivalent to 577 barrels per day.

The table below summarizes the production from the respective oil fields.

Sep

2012

Sep

2011

Jan-Sep

2012

Jan-Sep

2011

Jan-Dec

2011

Lelyaki

10,550

7,000

90,650

7,000

32,800

Rustamovskoye

6,750

5,500

38,050

31,500

44,500

Total barrels

17,300

12,500

128,700

38,500

77,300

Lelyaki

352

233

331

26

90

Rustamovskoye

225

183

139

115

122

Total barrels per day

577

417

470

141

212

In the third quarter 2012 the company’s production amounted to 46,400 barrels, or 504 barrels per day, compared to 24,400 barrels, or 265 barrels per day, in the same period in 2011.

During the summer, Shelton Petroleum completed a vertical seismic profile and fracking of two wells at Rustamovskoye. As a direct result of the fracking the company raised the field’s production to over 200 barrels per day in August and September, compared to 120 in June.

Shelton Petroleum has previously announced the results from the oil auctions in Ukraine. Starting from September, Shelton Petroleum will instead report monthly production volumes for its producing fields in both Russia and Ukraine. The production reports are assessed to better portray to the investor the development in the company. The results of the auctions in Ukraine have historically been published at the following link (in Ukrainian): http://www.uice.com.ua.

Shelton Petroleum has a 45% working interest in Kashtan Petroleum (holder of the license to the Lelyaki oil field) through its wholly owned subsidiary Zhoda 2001 Corporation. Ukrnafta, Ukraine's largest oil and gas company, owns 55%. The production data in the table above represents Shelton Petroleum’s working interest.

For more information, please contact:

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

robert.karlsson@sheltonpetroleum.com

www.sheltonpetroleum.com

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 holds an equity stake in Baltic Oil Terminals PLC. The Shelton Petroleum share is traded on the NGM stock exchange under the under the symbol SHEL B.