The fourth well on the Rustamovskoye oil field in Russia has been taken into production with an initial flow rate exceeding 300 barrels per day, which is significantly higher than the field’s previous wells. Shelton Petroleum’s Russian and Ukrainian operations have now jointly reached a total production of approximately 1,000 barrels per day.
The new well #12 has been drilled to a total depth of 2,500 meters. Following a test program, the well has been put into production. It currently produces more than 300 barrels per day and the total production from the field amounts to approximately 700 barrels per day.
The well encountered oil in the same sandstone formation as the three previous wells are producing from. The oil-bearing formation came in deeper than expected, and as a result the well has significantly extended the known oil column. The reservoir properties are of high quality with 8 meters of net pay, compared to up to 3 meters in previous wells. The higher net pay allows for higher well productivity as well as better conditions for future horizontal drillings with superior well economics.
“The results from the #12 well are extremely encouraging and provide a new and improved view on the ultimate potential of the field. If we can repeat these results in future drillings, the company will be able to increase its reserves substantially at the next reserves update. Shelton Petroleum’s opportunities to successfully develop its three fields in Bashkiria will increase manifold”, says Robert Karlsson, CEO of Shelton Petroleum.
Later this year, Shelton Petroleum intends to publish a geologic update on the Rustamovskoye field, taking into account the new results from the successful drilling of the #12 well.
For more information, please contact:
Robert Karlsson, CEO, Shelton Petroleum, +46 709 565 141 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. In Russia, the company holds three licenses in the Volga-Urals area in Bashkiria 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. The Shelton Petroleum share is traded on NASDAQ OMX Stockholm under the under the symbol SHEL B.