Shelton provides operational update on Well No.307 Lelyaki Field Ukraine



    CALGARY, Jan. 5 /CNW/ - Shelton Canada Corp. ("Shelton" or the "Company")
(TSXV symbol "STO") is pleased to provide an operational update on its
projects in Ukraine.
    Kashtan Petroleum Joint Venture - Lelyaki Oil Field: Well No.307 has been
cased for production and well completion procedure has been completed. The
well was drilled to total depth of 1960 metres and encountered measured depth
oil saturated porous zones of 5.0 metres in the lowermost K zone and 8.6
metres in the dolomite reservoir of the P1+P2 zone. The well has been
completed in the K zone and initial well productivity after cleanup is
approximately 38 metric tonnes of fluid per day with oil cut ranging from 96%
to 97.5% (average gross 284 barrels of oil per day and net Shelton of 128
barrels of oil per day).
    Shelton's net volume of production from the Lelyaki Oil Field is now in
excess of 400 barrels of light, 41 degree, oil per day.
    Lease construction is nearing completion for the next well No.304 A, with
planned spud date early in 2009. This well will be followed later in 2009 with
the drilling of well No.308.
    This work is an ongoing part of the Kashtan Petroleum Joint Ventures plan
to fully exploit the remaining oil reserves in the Lelyaki field through
optimal placement of infill production wells. In addition, the Joint Venture
anticipates re-entering and sidetrack drilling of 4 other suspended wells in
different parts of the field during 2009. These well interventions show very
good economics as the capital cost is much lower than new drilling.

    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.

    Forward-Looking Information

    Except for statements of historical fact relating to the company, this
news release may contain certain "forward-looking information" within the
meaning of applicable securities law including opinions, assumptions,
estimates and management's assessment of future plans and operations, budgeted
capital expenditures and funding thereof, wells to be drilled, timing of
drilling of wells and expected depths, budgeted cost of wells, commencement of
production from wells and year-end production rate. 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's control, and no assurance can
be given that such events will occur on time or at all. Any number of
important factors could cause actual results to differ materially from those
in the forward-looking statements including, but not limited to, risks
associated with oil and gas exploration, development, exploitation, results
from testing, production, marketing and transportation, the volatility of oil
and gas prices, currency fluctuations, the ability to implement corporate
strategies, the state of domestic capital markets, the ability to obtain
financing, incorrect assessment of the value of acquisitions, failure to
realize the anticipated benefits of acquisitions, changes in oil and gas
acquisition and drilling programs, delays resulting from inability to obtain
required regulatory approvals, delays resulting from inability to obtain
drilling rigs and other services, delays in tie-in-operations, results from
testing, environmental risks, competition from other producers, imprecision of
reserve estimates, changes in general economic conditions and other factors
more fully described from time to time in the reports and filings made by
Shelton with securities regulatory authorities. All of these risks are
applicable to continued development and production form the Lelyaki Oil Field
including the specific actions mentioned in this Press Release. Specifically
with regard to the net income which is attributable to Shelton from the
Kashtan Joint Venture all of it has been to date reinvested into exploration,
development and drilling in the Lelyaki Field. Arrangements have now been made
to have paid directly to Shelton, commencing January 1, 2009, and thereafter
on an annual basis a dividend comprising Shelton's proportionate share of net
income from the Kashtan Joint Venture. Shelton will then allocate the dividend
proceeds appropriately. The receipt of these funds, however, is always subject
to all of the risk factors mentioned above. Shelton 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, info@sheltoncdn.com

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