Following Shelton Petroleum's successful exploration program on the Rustamovskoye oil field in Bashkiria, the Russian Federal Agency of Subsoil Use has granted Shelton Petroleum a production license on this field. The license allows Shelton Petroleum to extract and sell hydrocarbons from Rustamovskoye for an initial period of twenty years.

"We have found commercial flows of oil in our first two wells on Rustamovoskoye and have commenced pilot production of our first Russian oil. New oil is being produced from one well which measured an initial rate of 158 barrels per day. The newly awarded license is the foundation of the further development drilling activity we have planned for 2011 to significantly enhance production levels", says Robert Karlsson, CEO of Shelton Petroleum.

The production license was issued by the Russian Federal Agency of Subsoil Use. It covers an area of 36 square kilometers on the northern part of Rustamovskoye. Both successful exploration wells and the planned initial development drilling locations are within the boundaries of the production license area. The southern part of Rustamovskoye remains under an exploration license valid until the end of 2012.

Tags: Shelton Petroleum