23
Aug 2011
Shelton Petroleum to receive SEK 51 million from Tomsk Refining

Shelton Petroleum is the second largest shareholder in Tomsk Refining AB (TRAB), which sold its Russian refining operations earlier this year. The shareholders of TRAB have since then resolved to liquidate the company as a way of distributing the cash generated through the sale of the refinery. The liquidator has now informed the shareholders that a first payment will be made on 31 August this year, providing Shelton Petroleum with SEK 51 million (USD 8 million). Furthermore, Shelton Petroleum may receive additional payments of up to SEK 25 million (USD 4 million).

“Shelton Petroleum’s investment in the Russian refinery has proven to be successful. The first cash payment of SEK 51 million will allow us to commence the very promising development program on the Rustamovskoye field, where we have already begun production of oil from the two exploration wells. It is very gratifying to be able to finance a substantial part of the drilling campaign with funds generated from the investment in TRAB”, says Robert Karlsson, CEO of Shelton Petroleum.

During the autumn of 2010, Shelton Petroleum acquired 3,900,000 shares in TRAB, corresponding to 15.1 per cent of the company’s share capital. The acquisition cost amounted to USD 7 million, of which USD 4 million were paid in Shelton Petroleum shares. Shelton Petroleum has previously disclosed that it may pay an additional consideration if certain conditions are met. A legal review by the company’s lawyers shows that these conditions have not been met.

Based on Shelton Petroleum’s acquisition of shares in TRAB, the implicit value of one hundred per cent of TRAB’s share capital amounted to USD 46 million. The liquidator of TRAB has now announced that the company expects to distribute a total of USD 72 million in two tranches, assuming that new creditors do not raise claims on the Swedish holding company TRAB. For Shelton Petroleum, this would entail a second payment of approximately SEK 19.5 million (USD 3 million) during the beginning of 2012. In addition to these two payments, the shareholders in TRAB may receive USD 6 million, or SEK 6 million (USD 1 million) net to Shelton Petroleum, depending on the outcome of warranties provided in TRAB’s sale purchase agreement.

For more information, please contact:

Robert Karlsson, CEO, Shelton Petroleum, tel +46 709 565141

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. The company holds three licenses in the Volga-Urals area 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.