EXI.L Regulatory News (EXI)

Exillon Energy plc

Drilling Update

23 July 2012 - Exillon Energy plc (EXI.LN), 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 following drilling update.

Well East EWS I - 52 was spudded on 18 June 2012 and drilled in 19 days on the northern part of the East EWS I field. The well flowed water-free oil naturally to the surface with a test flow rate of 692 bbl/day on an 8 mm choke. Only part of the net pay zone has so far been perforated. The well encountered the Jurassic P reservoir at 1,865 metres, confirming 21.7 metres of effective vertical net pay. Due to the angled trajectory of the well bore this exposed 40.6 metres of effective net oil pay for production.

The oil water contact in this area of the field had originally been assumed to be at 1,872 metres. The new well has not encountered an oil water transition zone and has confirmed the presence of oil at least 21 metres below the originally assumed oil water contact. This is likely to have a positive impact on both the production and reserves in this area of the field.

The well was drilled directionally 1.3 km south east of Pad 5, and is now connected to our existing production facilities.

Well 52 is the third development well drilled from Pad 5 following the success of exploration Well 50 in 2011. The drilling of the second development well, Well 54, was finished on 16 June but it will be completed and tested after Well 52.

Media contacts:

Tom Blackwell +44 207 920 2330