CALGARY, Feb. 26 /CNW/ - Shelton Canada Corp. (TSX Venture: STO) and
Ukraine's largest oil and gas company, Ukrnafta, will drill their second
development well as partners in the Kashtan Petroleum Joint Venture. Located
in the Lelyaki oil field in east-central Ukraine, the well No.307 is expected
to spud in the second quarter of 2008. The new well has a projected total
depth of 1960 metres and will be drilled as a directional well to further
develop the P1&2 and K-1 productive reservoirs. Recently-drilled offset wells
showed initial productivity of greater than 240 barrels of light oil
(42 degree API) per day (net 108 barrels). Net drilling cost is expected to be
$450,000 Cdn and the well is in close proximity to pipeline infrastructure for
"This second well is an ongoing part of the Kashtan Joint Venture's plan
to fully exploit the remaining oil reserves in the Lelyaki field through
optimal placement of infill production wells," said Zenon Potoczny, President
and CEO of Shelton Canada. "In addition, the Joint Venture anticipates
re-entering and sidetrack drilling of four other suspended wells in different
parts of the field during 2008. These well interventions show very good
economics as the capital cost is much lower than new drilling. We have been
very happy with the pool performance since it was acquired in mid 2007 and the
first well (No.304) drilled post acquisition has averaged 185 barrels of oil
(net 83 barrels) since coming on-stream in December 2007. Shelton's average
daily production for 2007 was net 255 barrels per day. The Joint Venture sells
its production at Brent equivalent pricing."
"Our strategic partnerships with leading Ukrainian oil and gas companies
like Ukrnafta and Chernomorneftegas are a key reason for our success in
Ukraine. Current net production is 350 barrels per day with further increases
expected in 2008."
Ukraine is important to world energy markets and a critical transit
centre for exports of Russian oil and natural gas to Europe. One of Europe's
largest energy consumers, Ukraine also wants to increase production from its
own basins. The country's proven reserves include 387 million barrels of oil
and 39 trillion cubic feet of gas.
About Shelton Canada
Shelton Canada Corp. (www.sheltoncdn.com), a Canadian-based junior oil
and gas company, is focused on exploring and developing the resource-rich
basins of Ukraine. The company has an internationally experienced board of
directors and a long history of successful operations in Ukraine. These
competitive advantages have helped Shelton to build effective personal
relationships, strategic regional partnerships, a large land position and a
portfolio of projects on and offshore. Shelton's long-term goals are to become
the leader in oil and gas production from the resource-rich Azov and Black Sea
basins in five years.
Except for statements of historical fact relating to the company, this
news release contains certain "forward-looking information" within the meaning
of applicable securities law. Forward-looking information in this news release
is characterized by words such as "plan", "expect", "project", "intend",
"believe", "anticipate", "estimate", and other similar words, or statements
that certain events or conditions "may" "will" or "could" occur. There are
uncertainties inherent in forward-looking information, including factors
beyond Shelton Canada Corp.'s control, and no assurance can be given that such
events will occur on time or at all. Shelton Canada Corp. undertakes no
obligation to update forward-looking information if circumstances or
management's estimates or opinions should change, except as required by law.
The reader is cautioned not to place undue reliance on forward-looking
statements. The risks and uncertainties set forth above are not exhaustive.
BOEs may be misleading, particularly if used in isolation. A BOE conversion
ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Zenon Potoczny, President & CEO, Richard N.
Edgar, Chairman & Director, Shelton Canada Corp., Office (416) 252-4101, Email
email@example.com; For investor information: Hedlin Lauder Investor
Relations Ltd., Toll Free 1-800-299-7823, Office (403) 232-6251, Email