(NGM:SHEL B)
Following Shelton Petroleum’s successful exploration program on the Rustamovskoye oil field in Bashkiria, the Russian Federal Agency of Subsoil Use has granted Shelton Petroleum a production license on this field. The license allows Shelton Petroleum to extract and sell hydrocarbons from Rustamovskoye for an initial period of twenty years.
“We have found commercial flows of oil in our first two wells on Rustamovoskoye and have commenced pilot production of our first Russian oil. New oil is being produced from one well which measured an initial rate of 158 barrels per day. The newly awarded license is the foundation of the further development drilling activity we have planned for 2011 to significantly enhance production levels”, says Robert Karlsson, CEO of Shelton Petroleum.
The production license was issued by the Russian Federal Agency of Subsoil Use. It covers an area of 36 square kilometers on the northern part of Rustamovskoye. Both successful exploration wells and the planned initial development drilling locations are within the boundaries of the production license area. The southern part of Rustamovskoye remains under an exploration license valid until the end of 2012.
For more information, please contact:
Robert Karlsson, CEO, Shelton Petroleum, tel +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 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. 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.