Shelton Petroleum AB (SHELB) advanced the most in a month in Stockholm trading after the Swedish oil-exploration company with assets in Russia and Ukraine started drilling a fourth well at the Rustamovskoye field.
Shares of Shelton Petroleum added as much as 1.20 kronor, or 6.3 percent, to 20.30 kronor, their steepest intraday advance since June 25. The stock traded 3.1 percent higher at 19.70 kronor as of 1:27 p.m. in the Swedish capital, with trading volume at 24 percent of the three-month daily average.
Shelton Petroleum said today that it spudded the fourth well, which “shows good flows and is connected to the field’s infrastructure.” The company also said it will start fracking inside the well, a process whereby the rock is broken up to allow oil to flow more freely in the reservoir by inserting fluids with additives under pressure.
“We are now producing” from all three “wells drilled on the Rustamovskoye field,” Chief Executive Officer Robert Karlsson said in a statement. “It is therefore positive that we are able to commence drilling of a fourth well within such a short time span. Together with the planned fracking, this gives us a good opportunity to increase the production further and enhance cash flow from the already profitable field.”
To contact the reporter on this story: Niklas Magnusson in Stockholm at firstname.lastname@example.org
To contact the editor responsible for this story: Tasneem Brogger at email@example.com