Oct 2012
Well #310 spudded at the Lelyaki oil field

Shelton Petroleum and its partner Ukrnafta have commenced drilling operations on a new well on the Lelyaki oil field in Ukraine. The well is the second of two new wells included in the 2012 work program.

Drilling operations on the new well #310 on the Lelyaki oil field in Ukraine have started. The field operator Kashtan Petroleum expects that it will be drilled and completed before year end. The close proximity to infrastructure enables a rapid tie-in of the well without major investments.

The new well is part of the ongoing work program to pursue the potential of the Lelyaki oil field. It is targeting production from the Permian and Carboniferous zones. In addition to the new well being drilled, the operator is performing a series of workovers on existing wells.

“During the past twelve months we have increased production at Lelyaki by fifty per cent to reach approximately 350 barrels per day net to Shelton Petroleum. This is a direct result of the work program we are implementing. I look forward to the potential contribution from well #310 which will further increase production volumes and strengthen our cash flow going forward,” says Zenon Potoczny, President of Shelton Petroleum.

Shelton Petroleum has a 45% interest in Kashtan Petroleum (holder of the license to the Lelyaki oil field) through its wholly owned subsidiary Zhoda 2001 Corporation. Ukrnafta, Ukraine's largest oil and gas company, owns 55%.

For more information, please contact:

Zenon Potoczny, President, Shelton Petroleum, +1416566 7163


Robert Karlsson, CEO, Shelton Petroleum, tel +46 709 565141 robert.karlsson@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 holds an equity stake in Baltic Oil Terminals PLC. The Shelton Petroleum share is traded on the NGM stock exchange under the under the symbol SHEL B.