May 2011
Successful seismic program on the Aysky block

Shelton Petroleum has recently completed a seismic program of 65 kilometers on the Aysky block in Bashkiriya, Russia. An independent processing and interpretation of the seismic data has identified three prospective structures with a significant potential amounting to over 20 million barrels of oil.

The Aysky block lies directly to the east of the Rustamovskoye block, where Shelton Petroleum has established a 100% drilling success ratio with its first two wells encountering commercial oil flows during pilot production testing. Bashneft, the leading Bashkirian oil company, produces oil from the bordering Metelinskoye field.

“I am very pleased that the results from the seismic program confirm the field’s excellent potential. We aim to repeat the success we achieved on Rustamovskoye also on Aysky. The history of these blocks is similar. Soviet drillings confirm the presence of oil. The difference is that Aysky has an area three times that of Rustamovskoye," says Robert Karlsson, CEO of Shelton Petroleum.

The independent seismic service company Udmurtgeofizika estimates Russian C1+C2 reserves and C3 resources to amount to 12 and 10 million recoverable barrels of oil respectively. Their conclusion is based on Shelton Petroleum’s seismic program and wells drilled during the Soviet era. Upon a tightening of the seismic grid through acquisition of more data, Shelton Petroleum will be able to register reserves with the Russian State Reserve Committee. New seismic data may also confirm the hypothesis that one of the structures on Aysky is a continuation of the oil saturated Devonian sandstone formation on Rustamovskoye, from which the company has commenced pilot production.

The collection of this round of seismic is the first significant step in the exploration program on Aysky. Shelton Petroleum is designing a tightening of the seismic grid in order to identify the optimal location for the exploration well to be drilled in accordance with the license agreement.

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 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. The company holds three licenses in Russia 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. Ukrainian operations include onshore as well as offshore projects. Shelton Petroleum is pursuing an integrated business model and has acquired significant equity stakes in Tomsk Refining AB and Baltic Oil Terminals PLC, the latter being 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.