Member Info for Gambier

Maybe somebody will pony up 10 million quid for the 13% (10p ish) but I still don't see the need for them to do it. They can keep it private and it will disappear into a Russian ether knowing small investors will not be able to take any legal action. Again just my opinion.

With respect, Russians like to pay for nothing. The RNS would have to had made a tender offer for them to be able to buy now . Unless somebody hovers them up this week, which I don't see happening

After delisting we won't here much from the company again and the assets divided up between the major shareholders.

There is no requirement for a tender offer on the AIM, if they are to make a tender offer as a part of the delisting it has to be presented in the RNS, so this is just a straight listing, if you don't sell now you hold shares in the private LTD company.

An offer for free float won't happen because the free float is so small. They can take it private and put an offer to buy shares through the trading mechanism described in the last RNS. The last share offer was at 10p and I dont see why any of the largest shareholders would pay that when they could get them for under 1 pence through the trading mechanism put forward in the RNS. Ten pence is probably the top end of fair value in my opinion, but I dont see any reason for them to pay it. From my understanding if a company delists through a buy out of the free float then this is presented to the shareholders with an offer price on which they vote. The vote be offered is merely one offers to take it private with a post-private trading mechanism. In the RNS it states they have already enough votes from shareholders who are considered holders within in the free float. I am happy to be corrected.

Not sure about director buys, historically there have been very few EXI director buys. The annual results show they have slashed management overhead and it would appear management are there to follow the major shareholders plan for the company. Of more concern is the lack of institutional investors and the small free float. This is common in most Russian stocks, particular when you have major shareholders who basically control the company. If the drilling goes well this year and the oil price improves, then cash reserves will be greater than market cap, thats how much investors dislike things Russian.

An obvious leak, somebody knew about this before the release this afternoon. I hope this goes unnoticed for a few weeks as I would be buying back in. Still concerns regarding major shareholders and their influence, little free float. Also a six percent shareholder has recently been made insolvent so not sure how this share will be disposed of.

So Exillon Energy has $50 million in cash reserves and will be drilling 28 new wells in 2016. The netback per barrel in Exillon WS is now $22 for over 80% of production because of 0% MET. So EXI is currently 40% more profitable per barrel than at anytime in its history (nearly all because of MET exemption). Quite amazing. More importantly this is at $40 dollar per barrel average (H2 2015). If the oil price increases EXI will benefit because of a better mix of sales, if it falls it will be neutral because ruble devaluation and reduced tax. The average flow rate for online wells drilled in 2015 has been 265 bpd. Previously years this has been over 400 bpd, so one would hope for a better year in 2016. So let's say they only get 25 producers (plus 3 dry wells) in 2016 and they average 300 bpd, that is an extra 7500 bpd. Six wells are due to come online from 2015 campaign and let's assume they maintain the current 15,000 bpd average by replenishing general depletion. Exillon would be looking at around 22,000 bpd with the vast majority being at a netback per barrel of $22/barrel. With higher production levels comes greater economy of scale and so one would expect the netback to improve by a few dollars to maybe $24/barrel. This is all pretty much worse case scenario. If oil can strengthen to a 2016 average of 50$/barrel, well flow rates return to 400 bpd average and management continue to reduce costs at the same rate, the EXI becomes extremely profitable and extremely cash rich.

- Drilled 17 production wells in 2016 - Well 111 on pad 12K flowed 1217 barrels per day - 6 of the 17 wells are still awaiting fracturing before they can contribute to production and one requires a work over - Compared to 2014 production (Exillson WS) is down 450,078 barrels for the year or 1250 barrels per day. However the seven wells requiring fracturing have yet to come online and will probably reduce that figure to 600 barrels per day. - Compared to 2014 Exillon TP production is down 6% due to the absence of drilling and work overs - Only US$12.2 million was spent on drilling, US$14.8 million on infrastructure and US$1.5 million on seismic data acquisition and interpretation The biggest improvement was in cost of sales which is attributable to 82% of Exillon WS production. For the full year EBITDA was US$16.4 / bbl compared to US$13.6 / bbl in 2014. Although EBITDA per barrel in H1 2015 was equal to US$10.2 per barrel, it was improved to US$22.3 per barrel in H2 2015. The poor result achieved in H1 2015 was driven by russian rouble depreciation, which reduced US dollar equivalent of netback and EBITDA, and lower average prices, reflecting the drastic drop in global oil prices. Expenses associated with export sales, such as export duty and Transneft transportation services, has also contributed to the reduction of netback and EBITDA. Despite the persistence of the above mentioned negative factors in H2 2015, the indicator was significantly enhanced due to the application of certain minerals extraction tax exemptions. - As at 21 April 2016 our cash balance has increased to US$81.4 million with net cash position amounted to US$50.4 million. - In 2016, are planning to drill 21 new producing wells in Exillon WS and drill 7 new wells in Exillon TP

The two largest shareholders are associates and they own the majority of the company. The management team are controlled by the main shareholder. Huge reserves, great infastructure, strong cash flow, profitable, no net debt but still very low valuation. Contaminated by being associated with Russian businessmen who have bought at very large premium to current market cap. Why not just buy the company out now when oil price and SP is so low? Why do they rarely provide market updates or offer any short/medium term business strategies?

One wonders why one of the bigger shareholders doesn't just buy up the rest of the shares at say 5p

Even if you valued it at a low 1$/barrel 2P reserves you would be looking at an SP of around 250p. Recent sales in Russia for inferior reserves have gone for higher ratios. Bottom line the company is contaminated by the two major shareholders and their influence over the board and management.