Statement from the CEO

For the year 2012, Shelton Petroleum recorded a turnover of SEK 100 million and an operating profit of SEK 30 million. During the fourth quarter, we reached a record production volume of 534 barrels per day and the highest quarterly operating profit to date, SEK 7 million. This evidences the company’s transformation from pure exploration into an oil producing company. It also strengthens our confidence in our license areas as well as provides important cash flows for the future development of our assets.

We are pleased to announce that we recently spudded a new production well on Rustamovskoye in Russia. We are looking forward to the incremental production that this well may contribute.

During the fourth quarter, we drilled well #310 to a total depth of 2,040 meters at the Lelyaki oil field in Ukraine. It is currently being tested.

As a result of the recently passed Production Sharing Agreement (PSA) legislation, the activity on the Ukrainian oil and gas market increased significantly during 2012. As an example, Shell recently signed an agreement whereby it will invest USD 10 billion to develop a gas asset. Furthermore, a consortium led by ExxonMobil has acquired an exploration license in the Black Sea for USD 300 million. We are currently evaluating several options for advancing our existing offshore portfolio with resources of 300 million barrels of oil equivalent, as well as opportunities to take on new licenses.

During the fourth quarter, the Shelton Petroleum share commenced trading at NASDAQ OMX Stockholm’s main market, which has contributed to a significantly increased share turnover compared with the period prior to the listing change. The migration to an internationally well-recognized exchange in combination with the company’s solid operational performance creates a strong platform to extract the value potential in the existing asset portfolio as well as finding new opportunities for the company and for our shareholders.

I am looking forward to pursuing the many opportunities that lie ahead during 2013.

Robert Karlsson

For more information, please contact:

Robert Karlsson, CEO, +46-709565141

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 Pan European Terminals PLC (PAN). The Shelton Petroleum share is traded on NASDAQ OMX Stockholm under the symbol SHEL B.