12 Jul 2012 07:00
Exillon Energy plc
Commissioning of Transneft Entry Point
12 July 2012 - Exillon Energy plc, a London premium listed independent oil producer with assets in two oil-rich regions of Russia, Timan-Pechora ("Exillon TP") and West Siberia ("Exillon WS"), is pleased to announce the commissioning of its own Entry Point to the Transneft pipeline network. All regulatory approvals have been obtained, and 100% of production from Exillon WS is now transiting via this facility.
Exillon had previously transported oil approximately 200km by road to reach an entry point owned by a third party. The new Entry Point is approximately 100km from our oil fields, and transportation costs will fall accordingly. We estimate that the use of the Entry Point will increase the EBITDA generated by production from Exillon WS by approximately USD 1.50 per barrel.
Transneft JSC is the state controlled trunk oil pipeline network of the Russian Federation. Once submitted to the Transneft network, oil can be sold for either export or domestic sale. The Entry Point is located in the town of Urai, the operational headquarters of Exillon WS, with a current capacity of 1,800 tonnes (approximately 13,000 barrels) per day, which can be increased by the construction of additional storage tanks. In June the average production from Exillon WS was 9,062 barrels per day.
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Tom Blackwell +44 207 920 2330