Shelton Petroleum has successfully completed its RS#2 well in Bashkiria. First oil production from three meters of perforations over the Devonian Kynovsko-Pashiyski zone commenced at a restricted rate of 158 barrels of oil per day. The well will gradually be optimized to its full potential over the coming weeks.

"This well completion and first Russian oil production is an extremely significant milestone for Shelton Petroleum and validates the future development potential of the 52 square kilometer Rustamovskoye License. To further increase production rates already this year, we have also commenced completion of the other successful exploration well RS#1. Further development drilling activity to significantly enhance produced volumes from the project will take place in 2011," says Robert Karlsson, CEO of Shelton Petroleum.

Earlier this year, Shelton Petroleum successfully completed the exploration program on Rustamovskoye. The Rustamovskoye license is now being converted into a production license. Initial oil production will be stored until the new license has been received. 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. The company is currently designing a work program to further define drill targets for the multizone oil potential of this region of the Volga Urals basin.

Tags: Shelton Petroleum