Jun 2011
Sale of shares finances the first steps in the Russian drilling program

In order to finance initial investments and to prepare for the development program on the oil fields in Bashkiria, Shelton Petroleum has sold approximately 1.7 million shares in AIM listed Baltic Oil Terminals Plc (Baltic).  Following the sale, of which Baltic was notified yesterday, Shelton Petroleum holds approximately 13,227,368 million shares, equivalent to 13.99 percent of the share capital.

Shelton Petroleum has completed a successful exploration program on the Rustamovskoye field in Bashkiria. As previously announced, the board of Shelton Petroleum has resolved to conduct a development drilling program on this field. The program will to a large degree be financed by funds from the liquidation of Tomsk Refining AB, and a first tranche of cash is expected to be received during the third quarter. In order to make initial investments in project design and preparation of the drill pad, Shelton Petroleum has sold a smaller part of its holding in Baltic, thereby creating a bridge financing until the funds from Tomsk Refining are received.

“Shelton Petroleum has a continued positive view on Baltic Oil Terminals’ operations, but the development of the oil field in Bashkiria has higher priority in the near term. A sale of a small part of the holding in Baltic enables rapid project execution of the development drilling on Rustamovskoye. I am convinced that this will create shareholder value over time," says Robert Karlsson, CEO of Shelton Petroleum.

Bashkiria lies within the resource-rich Volga-Ural basin and is one of the Russian Federation’s primary oil regions. The republic has a daily production of 300,000 barrels and Russia’s largest refinery capacity of one million barrels per day. Shelton Petroleum holds three adjacent licenses in Bashkiria: Rustamovskoye (52 square kilometers), Aysky (187 square kilometers) and Suyanovskoye (300 square kilometers).

For more information, please contact: Robert Karlsson, CEO, Shelton Petroleum, tel +46 709 565141 robert.karlsson@sheltonpetroleum.com www.sheltonpetroleum.com

About Baltic Oil Terminals

Baltic owns, operates or leases terminals or tank capacity in Kaliningrad Russia and Rotterdam Holland. The Baltic share is listed on AIM in London. The Board of Baltic has announced the suspension of trading of its shares. For more information, visit www.balticpetroleum.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 region 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 has acquired a significant equity stake in 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.