Shelton Canada Corp. announces addition to portfolio of projects in Ukraine
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 this year.
The Arkchangelske license was renewed in early 2008 and is now valid until 2038.
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
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.
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SOURCE Shelton Canada Corp.