TSX - V: STO
CALGARY, Dec. 12 /CNW/ - Shelton Canada Corp. (TSX Venture: STO) and
Ukraine's largest oil and gas company, Ukrnafta, have drilled their first well
as partners in the Kashtan Petroleum Joint Venture. Located in the Lelyaki oil
field, east-central Ukraine, the well No.304 has tested initially about
142 barrels of oil equivalent per day net to Shelton. The new well is a solid
addition to the company's current daily production of 250 barrels of light oil
from the Lelyaki concession.
Drilled at relatively low cost to Shelton at Cdn$450,000, the well,
producing high-quality light oil, should be tied in shortly to the main
pipeline. Its close proximity to oil and gas infrastructure and Ukraine's
extensive network of pipelines ensures cost-efficient transportation to the
huge markets of Europe. Shelton expects sales at highly favourable pricing to
begin early January 2008. Revenues generated will be used to fund development
drilling and well re-completions in the Lelyaki Field.
"It's the first well we've drilled since acquiring the Lelyaki concession
earlier this year as part of our joint venture agreement with Ukrnafta," says
Zenon Potoczny, Shelton's President and CEO. "Our strategic partnerships with
leading Ukrainian oil and gas companies like Ukrnafta are a key reason for our
success in Ukraine."
Ukraine is important to world energy markets. The country is a critical
transit centre for exports of Russian oil and natural gas to Europe. Ukraine
is also one of Europe's largest energy consumers, and wants to increase
production from its own basins. The country's proven reserves include
53.8 million tonnes of oil and 1.1 trillion cubic metres of gas.
About Shelton Canada Corp.
Shelton, 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
A strategic partnership with Ukrnafta, Ukraine's largest oil and gas
company, provides Shelton with concessions in the Lelyaki field through a
45-percent participation in the Kashtan Petroleum Joint Venture. A 50-per cent
participation in a Joint Investment Agreement with Chernomorneftegas, the
leading Crimean oil and gas company in offshore development, gives Shelton
exceptional long-term potential to explore and develop large concessions in
the Azov and Black Sea region. Shelton currently has a reserve base of:
- 5.32 million BOE (P90)
- 8.70 million BOE (P50)
- 15.98 million BOE (P10)
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, and
ultimately to expand exploration and development programs across eastern
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.
"The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release."
For more information on Shelton Canada Corp., visit www.sheltoncdn.com
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