Shelton Canada has invested $1.6 million in developing the Lelyaki property in Ukraine during 2008 which resulted in the addition of 205 mboe of proved producing reserves. Development costs for the Lelyaki property were $7.80 per boe of proved pumping reserves. The before tax net present value (10% discount rate) of Shelton Canada’s proven plus probable reserves increased to $136.5 million, up by 60% over year end 2007.
Zenon Potoczny, president, commented the company has had a very good year for development and adding new projects. It has continued to develop the large in place reserves in the Lelyaki oil field through low risk development drilling. In addition it has been successful in adding the offshore Black Sea Arckchangelske Natural Gas Project to its portfolio. This project is currently going through the final approval process by Ukraine State regulatory bodies. Shelton plans on participating in a new 300 kilometer 2D seismic acquisition program over this structure in the summer of 2009.
Zenon further commented the company continues to review various other financings to further its growth including co-listings on alternate foreign exchanges. Additionally the company is looking at opportunities to expand its operations into other jurisdictions in the vicinity of Ukraine in addition to focusing on the opportunities in and around the Crimean region of Ukraine. The company has made application to transfer its prime regulator from the Ontario Securities Commission to the Alberta Securities Commission.
