CALGARY, Feb. 4 /CNW/ - Shelton Canada Corp. ("Shelton") (TSX
VENTURE:STO) is pleased to announce that it has signed a Joint Investment
Activity agreement with National Joint Stock Company Chornomornaftogaz
("Chornomornaftogaz"), a 100% state owned enterprise of Ukraine, to acquire,
jointly develop and operate a concession known as the Arkchangelske Field
located on the west side of the Crimean Peninsula in the shallow water shelf
of the Black Sea. The working interest acquired by Shelton is 50% of the
entire concession. The agreement is now going through the registration process
with regulatory authorities of the Ukrainian Government.
This large (87 square kilometer) concession holds a large seismically
defined structure with multi zone potential for natural gas. The field is
currently on production with cumulative production of 17 billion cubic feet of
natural gas from a single platform in the Western portion of the structure
producing from the shallow sediments of the Tortonian and middle Maikop
formations. Produced gas is transported to a sales point through the
Chornomornaftogaz subsea pipeline linking a number of offshore fields to the
mainland. This pipeline has capacity for additional daily volumes.
The primary exploration target for the structure is the Lower Paleocene
with potential for very large accumulations of natural gas (estimated
potential undiscovered resources of 750 billion cubic feet gas in place). The
Arkchangelske field is approximately 25 kilometres offshore with water depths
of 45 metres.
This concession lies adjacent to the natural gas producing Stormovoye
Field (cumulative production 170 billion cubic feet), and Golitsinske Field.
Both of these fields are operated by our joint venture partner
Chornomornaftogaz and produce natural gas and condensate from sediments of
Maikop and Lower Paleocene age.
Chornomornaftogaz and Shelton have planned a work program pursuant to the
Joint Investment Activity Agreement. The work program planned for 2009
consists of the acquisition of 300 kilometres of new 2 dimensional seismic as
well as development of an optimum production model.
Seismic acquisition contractor bids are now being acquired and the
program is scheduled to take place during the second and third quarters of
The Arkchangelske license was renewed in early 2008 and is now valid
Zenon Potoczny, President and CEO, commented: "Reaching agreement with
Chornomornaftogaz on the Arkchangelske concession is a significant event for
Shelton. This exceptional opportunity greatly enhances Shelton's portfolio
with a project near a high productivity field not far from existing
infrastructure and huge market. Because natural gas has already been
discovered in significant quantities, we believe that this natural gas
concession can be a profitable development and could add substantial value to
Shelton. We also believe that we will be able to access further attractive
opportunities to complement and expand our existing portfolio of properties in
Ukraine. We also note the market price for sales of natural gas is anticipated
to reach parity with European Grid prices by 2011."
The agreement regarding Arkchangelske represents a further important
milestone in cooperation between Shelton and Chornomornaftogaz following
previously announced agreements on the Birjuchja and North Kerchenskaya
concessions all with a 50% participation for Shelton.
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 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 and will continue to be applicable to continued exploration,
development and production from the Arkchangelske concession including the
specific actions mentioned in this Press Release. 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 general inquiries and investor information.
For further information:
For further information: Zenon Potoczny, President & CEO, (416)
252-4101, email@example.com, or Richard Edgar, Chairman of the Board, (403)