Jul 2010

Shelton Petroleum has prepared a prospectus in Swedish for admission to trading of the new shares issued in connection with the private placement completed in June.

On 22 June, Shelton Petroleum announced that the private placement decided by the Board of Directors was oversubscribed and that the proceeds amounted to SEK 30 million before issue costs. The proceeds will, as previously announced, be used to commence pilot production of oil and to take steps towards large-scale production in Bashkiria, Russia. Shelton Petroleum has prepared a prospectus in Swedish for admission to trading on the NGM stock exchange of the new shares issued. The prospectus has been approved and registered by the Swedish Financial Supervisory Authority in accordance with Chapter 2, 25 and 26 § § Act on trading in financial instruments and is available on www.sheltonpetroleum.com.

For more information, please contact:

Robert Karlsson, CEO, Shelton Petroleum, tel +46 709 565 141



The information in this press release does not constitute or form part of any offer to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of Shelton Petroleum. The information contained in this press release is not intended for publication, release or distribution in or into United States, Australia, Canada, South Africa, Japan, Hong Kong, New Zealand or any country under which laws and regulations there would exist an obligation to prepare, file, register or publish any information as a result hereof.

About Shelton Petroleum

Shelton Petroleum is a Swedish company focused on exploring and developing concessions in the Volga-Urals area in Russia and the resource-rich basins of Ukraine. Shelton Petroleum has built effective personal relationships, strategic regional partnerships and a portfolio of projects onshore and offshore. The company holds three licenses in the Russian republic of Bashkiria, located southwest of the Ural Mountains. The license blocks, which border one another, have an area of over 500 square kilometers and are surrounded by other producing oil fields. The company has found oil in its first two wells and measured commercial flow rates. In Ukraine, Shelton Petroleum’s wholly-owned subsidiary Zhoda 2001 has a strategic partnership with Ukrnafta, Ukraine's largest oil and gas company. It provides Shelton Petroleum with a stake in the oil producing Lelyaki field in Chernigov Region close to Poltava. Shelton Petroleum also has a Joint Investment Agreement with Chornomornaftogaz, the leading Ukrainian oil and gas company in offshore development, that gives it a fifty per-cent stake in three major license areas in the Azov and Black Sea regions. The Shelton Petroleum share is traded on the NGM stock exchange under the under the symbol SHEL B. The company has applied for a listing of its share on

NASDAQ OMX Main Market.