"We are very pleased with the good exploration results Shelton has achieved on the Rustamovskoye field. We have found oil in two of two wells and can now say that both show commercially-viable flows. Access to infrastructure in the area is good, and we expect to be able to sell our first Russian oil as early as this summer," says Robert Karlsson, CEO of Shelton Petroleum.

Shelton Petroleum has perforated a three-meter interval in the Upper Devonian oil bearing Kynovsko-Pashiysky sediments. Production rates indicate a flow rate of 200 barrels of oil per day from RS#2. The new test thus confirms the good reservoir properties and RS#2 will be put into production, which was indicated by the shorter drill stem test carried out at the end of last year. The first well on Rustamovskoye, RS#1, showed commercial flow rates in a test program that was completed at the end of 2008.

A number of producing oil fields are located nearby, and access to infrastructure is good in the area. This means Shelton Petroleum can commence production from the now tested exploration well with a minimum of investment. Initially, Shelton plans to transport oil by truck to a pipeline connection point located 20 kilometers from the drill site.

The testing of RS#2 was the final step in the Rustamovskoye exploration program. Shelton proceeds now to a production phase in Russia as well. During 2010 Shelton intends to commence production from the two exploration wells as well as to prepare for a large-scale development of the field, which will dramatically increase its cash flows and daily barrel production numbers. The drilling of the production wells in Russia is expected to begin during the first half of 2011. Shelton Petroleum also has a 45-per-cent interest in the producing Lelyaki field in Chernigov region outside Poltava, Ukraine. The total production of that field amounted to an average of 600 barrels per day in 2009, and the field is deemed to have a potential of over 3,000 barrels per day.

Bashkiria is one of Russia’s oil capitals. Oil accounts for half of the region’s economy. Bashkiria has the greatest refinery capacity in all of Russia.

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 found oil in its first two wells and measured commercial flow rates. In Ukraine, a strategic partnership with Ukrnafta, Ukraine's largest oil and gas company, 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 symbol SHEL B.