As previously announced the new well (RS #11) on the Rustamovskoye field in Russia has encountered oil. The well is being production tested and has flowed at approximately 130 barrels per day. The company is planning a fracking of the well in order to further raise the flow rate.
“We are pleased that the new well has been successfully tested. We are now producing oil from three out of three drilled wells at the Rustamovskoye field. The upcoming fracking of the well may significantly increase its flow rate. The incremental production raises the cash flow from the already profitable oil field”, says Robert Karlsson, CEO of Shelton Petroleum.
RS #11 has been tied into the field’s facilities and the company has commenced sale of oil from the well. The new well is producing from the same Devonian sandstone formation as the other two Rustamovskoye wells. The permeability and porosity of the reservoir rock are of good quality. The company is currently planning to frack the well in order to reach the full potential in well productivity. Last summer, the company completed a fracking program and the flow rate of RS #2 is now, twelve months later, seventy per cent higher than prior to the fracking.
The new well has contributed valuable information about the reservoir’s properties and extension, which in turn allows for a potential increase in the company’s reserves in the next reserve update.
The company is conducting a study of drilling data and geological information to develop a new project design on how to optimally target and extract the pool’s reserves. The new design will encompass horizontal drilling, which, given suitable geological conditions, allows for significantly enhanced well economics.
For more information, please contact:
Robert Karlsson, CEO, Shelton Petroleum, +46 709 565141
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. The Shelton Petroleum share is traded on NASDAQ OMX Stockholm under the under the symbol SHEL B.
 Fracking is a method of breaking up the rock of the reservoir by inserting fluids with additives under pressure. It allows for oil to flow more freely in the reservoir into the wellbore.