Shelton Petroleum has successfully completed its RS#1 well in Bashkiria, Russia. The company is now producing oil from both of the wells drilled in the exploration program. The company sells its oil on the local Russian market. Bashkiria is one of the most prolific Russian oil regions and has the largest refinery capacity in the country.

"This well completion is an important milestone for Shelton Petroleum as we now have started production from both of the wells that we have drilled on Rustamosvkoye. It validates the future development potential of the license area and we look forward to further drilling activity to significantly enhance produced volumes from the field," says Robert Karlsson, CEO of Shelton Petroleum.

The well has showed an initial flow rate of about 150 barrels per day. It will be tested under different regimes during the coming months in order to optimize production levels. Production from the two wells is initially carried out from a Devonian sandstone formation. The upcoming work program will further define drill targets to exploit the multizone oil potential in this part of the Volga Urals Basin. The oil is sold on the local Russian market. In addition to the revenue and cash flow generated from the sales of oil, the production also contributes valuable reservoir information necessary to establish an optimal drilling program for the field.

The Rustamovskoye license area is 52 square kilometers. Shelton Petroleum also holds the two adjacent licenses Aysky (187 square kilometers) and Suyanovskoye (300 square kilometers). Soviet drillings on these blocks have confirmed the presence of hydrocarbons.

Tags: Shelton Petroleum