OilVoice - Shelton Petroleum Provides Update on Reserves Potential in Ukraine

Shelton Petroleum Provides Update on Reserves Potential in Ukraine

Friday, February 05, 2010

Shelton Petroleum announces an independent Western reserves report on the company's licenses in Russia and Ukraine. Reserves amount to 14 million barrels of oil, and the potential in the company's oil and gas fields amounts to 343 million barrels of oil equivalent.

"It is extremely positive that an independent valuation body has now confirmed the great potential in Shelton Petroleum's license portfolio. Already, we have cost-efficient oil production from the Lelyaki field in Ukraine, and we have found oil in both of our exploration wells on Rustamovskoye in Russia. These things, taken together with our resource-rich offshore licenses, mean we are confident of continuing on this positive path of development," says Robert Karlsson, CEO of Shelton Petroleum.

Shelton Petroleum operates upon a good base of reserves and resources. The company has formulated the following strategic objectives:

Ramp up production at Lelyaki
The Lelyaki oil field was previously one of the largest producing oil fields in the Soviet Union, with a cumulative production of 385 million barrels of oil. The field's total daily production in 2009 was over 600 barrels per day. The company will increase production by drilling new wells and by re-entering and sidetracking suspended wells. Well interventions show very good economics as the required investments are low. The new wells are drilled in close proximity to pipeline infrastructure for rapid tie-in.

Commence production in Bashkiria
Shelton Petroleum and continue exploration and commence extraction in order to realize the potential of the Rustamovskoye, Aysky and Suyanovskoye license blocks. The short-term objective is to commence production from Rustamovskoye, where the company has completed a successful exploration program and found oil in the first two wells.

Convert resources to reserves
Shelton Petroleum will take steps to pursue its potentially high-yield exploration opportunities offshore in Ukraine and onshore in Russia. Work will include analyzing historical exploratory data, collecting new seismic and selective and carefully assessed drilling.

Acquire new licenses and integrate vertically into the oil refining business
Shelton Petroleum has built effective personal relationships, strategic regional partnerships and a portfolio of projects onshore and offshore. Local knowledge and experience enables the company to identify, acquire and exploit undervalued assets in Russia and Ukraine. Shelton Petroleum holds an option to acquire a major share holding in Tomsk Refining AB, which owns a newly built refinery in Western Siberia.