Shelton Canada Spuds West Birjuchja 1 Well

Shelton Canada reports that the West Birjuchja No.1 test well, located in the Sea of Azov, Ukraine, was spudded on May 9, 2006 by the Sivash jackup. The well is currently drilling ahead at 105 meters.

Located approximately fifty kilometers offshore of the east coast of Crimea, the Birjuchja well will be drilled as a vertical well to a planned total depth of 1700 meters. This well is the first well in a planned three well appraisal program targeting oil and natural gas in the Oligocene - Maikop and Lower Cretaceous sediments.

Shelton has a 50 percent interest in the West Birjuchja well. The West Birjuchja No.1 well is expected to take approximately forty days to drill. An additional thirty days is expected for completion and testing.

Zenon Potoczny, President and CEO, commented: "The Shelton team is thrilled to announce the spudding of the West Birjuchja No.1 exploration well. We feel that the Birjuchja structure is a world class exploration play and are pleased to see that everything is going according to a plan."

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