CALGARY, June 23 /CNW/ - Shelton Canada Corp. ("Shelton" or the
"Company") (TSXV symbol "STO") is pleased to announce that the second of the
ongoing development wells in the Lelyaki Oil Field (Well No. 307), in Eastern
Ukraine is expected to spud within the next ten days. The well has a projected
total depth of 1,960 meters and it is estimated that it will require 45 to
60 days to drill at a cost of $1.6 million CAD (net $720,000 CAD). Shelton has
a 45 percent working interest in the well through its ownership in Kashtan
Petroleum Ltd. The previous development well (Well No. 304), located
approximately 2 kilometers north east of the new well was on production within
60 days of completion of drilling and has averaged 162 bopd (net 73 bopd) from
January 1, 2008 to May 31, 2008.
In other news, the Company has reviewed the recently announced changes to
the royalty regime for oil production in Ukraine and based on May 2008 sales
the Company expects its netback will increase by approximately ten percent as
a result of the positive changes to legislation.
In light of this change, the Company is reassessing its 2008 capital
expenditures budget and expects to update the market in due course.
About Shelton Canada Corp.:
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, and 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 more information on Shelton Canada Corp., visit www.sheltoncdn.com
For further information:
For further information: For general inquiries and investor information:
Zenon Potoczny, President & CEO, (416) 252-4101, firstname.lastname@example.org; or
Richard Edgar, Chairman, (403) 237-9996; or Hedlin Lauder Investor Relations
Ltd., Toll Free 1-800-299-7823, Office (403) 232-6251,