10
Mar 2011
UPDATE ON SHELTON’S OWNERSHIP IN TOMSK REFINING

Shelton Petroleum has a fifteen percent stake in the Swedish company Tomsk Refining AB, which runs a refinery in Russia. An extraordinary general meeting in Tomsk Refining has previously voted for a sale of the company’s operating subsidiaries. Tomsk Refining’s management has now announced that the sales proceeds have been transferred to a trust account with a Swedish law firm and that they expect the transaction to be closed in March.

“Shelton Petroleum's strategy is to become an integrated oil and gas company with operations in exploration and production, as well as in refining and transshipment. As part of this strategy, we acquired an equity stake in Tomsk Refining last fall. The upcoming transaction allows for a profitable exit from the Tomsk Refining investment as well as a strengthening of Shelton Petroleum's financial resources, enabling continued development of the licenses in Bashkiria. Shelton Petroleum remains committed to the integrated business model. We closely monitor the activities and business opportunities available on the market for Russian refineries," says Robert Karlsson, CEO of Shelton Petroleum.

The purchase price for the Tomsk Refining subsidiaries preliminarily amounts to USD 80.5 million and may be adjusted depending on group debt, costs involved in the operations of the subsidiaries and a net debt calculation. Shelton Petroleum owns 3.9 million shares in Tomsk Refining, representing approximately 15 percent of the share capital of Tomsk Refining. Shelton Petroleum acquired its shares for approximately USD 7 million. Shelton Petroleum will pay an additional consideration if certain conditions are met within a limited timeframe.

The management of Tomsk Refining estimates that the acquisition will be completed in March. Following that, a process to liquidate the company will be commenced. The first payment to Tomsk Refining's shareholders is expected to be made a couple of months later. Please visit www.tomskrefining.com for more information on Tomsk Refining and the transaction.

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. 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.