The Shelton Petroleum well spudded in February in the Rustamovskoye field in Russia has encountered oil, the company said in a news release.

In May, the well reached a total depth of 2,565 m (8,415 ft). Wireline log data show that the well encountered oil in the Devonian sandstone formation from which the other two wells on the Rustamovskoye field are producing, the release said. A 5-m (16-m) interval will be perforated and production tested.

The field will be developed step by step to manage geological risks and balance investments against the financial resources available to the company. Shelton has therefore entered a contract that allows it to drill one well with an option to drill one more well, the company said. Following review of drilling data and geological information, a new project design on how to optimally target and extract the pool’s reserves will be finalized. The new design will encompass the possibility of horizontal drilling.