1
Dec 2010
PROSPECTUS REGISTERED BY THE SWEDISH FINANCIAL SUPERVISORY AUTHORITY

(NGM:SHEL B)

Shelton Petroleum has prepared a prospectus in Swedish for admission to trading of the new shares issued in connection with the previously announced new share issues completed in September and November related to the acquisition of shares in Tomsk Refining and Baltic Oil Terminals.

In September, Shelton Petroleum announced that it had acquired approximately 15 per cent of the share capital in Tomsk Refining AB. Part of the consideration consisted of 31,140,845 new B shares in Shelton Petroleum, issued after decision by the Board on 21 September 2010. The new share issue corresponds to a dilution of approximately 11.3 per cent.

In November 2010, Shelton Petroleum announced that it has entered into an agreement regarding share swap and strategic relationship with Baltic Oil Terminals PLC ("Baltic"). The Board decided on 8 November 2010 to issue 54,000,000 new B shares in Shelton Petroleum to Baltic, and Baltic issued 14,957,368 new ordinary shares in the capital of Baltic to Shelton Petroleum. Following completion of the new share issues, Shelton Petroleum owns approximately 19.5 per cent of Baltic's enlarged issued share capital. The new share issue corresponds to a dilution of approximately 6.5 per cent. Total dilution from the new B shares decided by the Board on 21 September and 8 November 2010 is approximately 16 per cent of the share capital and approximately 14 per cent of the number of votes based on the number of shares after the two share issues.

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

robert.karlsson@sheltonpetroleum.com

www.sheltonpetroleum.com

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 1 December 2010 at 10:00 CET.

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 commenced production from one of its two successful exploration wells in Russia. 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. Shelton Petroleum is a substantial shareholder in Tomsk Refining, a Swedish company that owns a brand new refinery in Tomsk in Western Siberia. Shelton Petroleum recently announced a share swap and strategic relationship with 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. The company has applied for a listing of its share on NASDAQ OMX Main Market.