Until production in West Siberia fields doubles to say 25k barrels per day, they will not be able to make use of economy of scale to increase net back per barrel. With current 2p reserves they ought to be doing just over 30k per day with WS in late 20s per day and TP over 6/7 per day.
Interesting they speak to an external group rather than address the shareholders
Interesting post regarding the Margelov interview re OPEC and consolidation in the sector. It looks positive in the sense EXI might benefit from the OPEC cut next week and with the shares barely trading above cash value there seems little downside from here. Possible top up on Monday and hopefully the shares might recover some of the lost ground in recent weeks. 6% rise on Friday suggests the market agrees albeit in thin trading
Good to see production stabilising and no longer decreasing at the rate in previous months. Seems to be the best numbers since April and hopefully as new wells come on line the production will start to increase from here
Concerning Russia's offers to join OPEC in curbing output, a suggestion balked at by some large producers, Margelov said he was confident Exillon and others like it would be unaffected, not least due to questions of implementation.
"I don't think someone would ever want to freeze the production of a small and independent producer like Exillon -- they don't have any mechanism to do this. I don't think [the government] would like to change taxation right now because people are worried… Read More
As a company, "we are in a very strong position and we have every chance to develop our production and sometime maybe in future to acquire new assets," he added.
Exillon is currently producing around 15,000 b/d of light, low-sulfur oil, most of it from the Kayumovskoe and Lumutinskoe fields in West Siberia, plus some in the Timan Pechora basin in Russia's far north. It plans a new drilling program in the first half of next year aimed at reviving its declining output.
Interview: New Exillon Energy chief sees robust future for Russian independent sector London (Platts)--24 Nov 2016
The head of Russia's Exillon Energy, Dmitry Margelov, has predicted a secure future for the country's independent upstream sector, but says a surge of merger and acquisition activity could be on the cards in the next two to three years.
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