EXI.L Regulatory News (EXI)

Exillon Energy plc

Drilling Update

13 June 2013 - 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 a drilling update.

EWS I - 70

Well EWS I - 70 was drilled on the northern extension of the East EWS I field. The well was spudded on the 4th May 2013 and drilled and cemented in 13 days. The well encountered the Jurassic P reservoir at 1,871 metres, confirming 17.8 metres of effective vertical net oil pay.

The well flowed oil naturally to the surface with a flow rate of 499 bbl/day on an 8 mm choke. The well was drilled vertically from Pad 7, and is now connected to our existing production facilities.

EWS I - 64

Well EWS I - 64 was drilled on the north-west extension of the EWS I field. The well was spudded on the 1st February 2013 and drilled and cemented in 29 days. The well encountered the Jurassic P reservoir at 1,862 metres, confirming 2.7 metres of effective vertical net oil pay.

Upon perforation the well flowed 220 bbl/day, of which 44 bbl/day was oil. The well was drilled 1.1 km to the north-west of Pad 6. Due to the fact that the well is located lower than any other well on the structure it has been converted to water injection for the purposes of maintaining reservoir pressure.

EWS I - 65

Well EWS I - 65 was drilled on the north-west extension of the EWS I field. The well was spudded on the 3rd March 2013 and drilled and cemented in 25 days. The well encountered the Jurassic P reservoir at 1,858 metres, confirming 8.6 metres of effective vertical net oil pay and 14.2 metres of net pay along the well bore.

The well is currently operated with a submersible pump flowing at 156 bbl/day, of which 85 bbl/day is oil. Going forward we will seek to minimize water cut in the production from this well. The well was drilled 1.6 km to the north-west of Pad 6, and is now connected to our existing production facilities.

EWS I - 66

Well EWS I - 66 was drilled on the north-west extension of the EWS I field. The well was spudded on the 30th March 2013 and drilled and cemented in 14 days. The well encountered the Jurassic P reservoir at 1,852 metres, confirming 10.5 metres of effective vertical net oil pay and 18.2 metres of net pay along the well bore.

The well is currently operated with a submersible pump flowing at 574 bbl/day, of which 551 bbl/day is oil. The well was drilled 1.0 km to the north-east of Pad 6, and is now connected to our existing production facilities. Well 6 is the last planned well from Pad 6. 

Appraisal well EWS I - 90

Appraisal well EWS I - 90 was designed to test the north-east extension of the EWS I field. The structure was previously tested with well EWS I - 61, but due to a long deviation of well EWS I - 61, the structure was not tested for flow rates.

The well was spudded on the 13th April 2013 and drilled and cemented in 34 days. 18.4 metres of core was collected, which is represented by mudstones, gravel conglomerates, and sandstones. The core exhibits signs of hydrocarbon saturation. During a test the well has produced only a film of oil due to low permeability of the producing horizon.

We will assess the core data for methods of producing from this reservoir. Two additional wells have been previously planned for drilling in this part of the field in 2013. No further drilling will be completed in this area of the field prior to the completion of petrophysical studies.

The well was drilled 0.7 km to the south-east of Pad 9, and has been converted to a water source well.

EWS I - 201

Well EWS I - 201 was drilled on the northern part of East EWS I field. The well was spudded on the 8th April 2013 and drilled and cemented in 25 days. The well encountered the Jurassic P reservoir at 1,872 metres, confirming 13 metres of effective vertical net oil pay.

The well is currently operated with a submersible pump flowing oil at 146 bbl/day. The well was drilled 1.7 km north of Pad 7, and is now connected to our existing production facilities.

Media contact:

Tom Blackwell

020 7920 2300

Blackwell@mcomgroup.com