2 Aug 2012 07:00
Exillon Energy plc
July Production Report and Drilling Update
2 August 2012
2 August 2012 - Exillon Energy plc ("Exillon Energy", the "Company" or the "Group") (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 unaudited production data for the month of July 2012 ("the Period").
·; Average daily production[1] for the Group was 12,330 bbl/day during the period.
·; Average daily production for Exillon TP was 3,148 bbl/day, and for Exillon WS it was 9,182 bbl/day during the period.
·; Peak daily production[2] for the Group was 13,381 bbl/day during the period.
We expect to make the August production announcement by 5 September 2012.
Drilling Update
Well East EWS I - 54 was spudded on 29 May 2012 and drilled in 18 days on the northern part of the East EWS I field. The well flowed water-free oil naturally to the surface with a combined test flow rate of 721 bbl/day on an 8 mm choke.
The well encountered the Jurassic P reservoir at -1,857 metres sub-sea, confirming 14.9 metres of effective vertical net pay and 30 metres of effective measured net pay for production due to the angled trajectory of the wellbore. In addition the well encountered 4.5 metres of effective vertical net pay of pre-Jurassic reservoir. This was tested separately, and resulted in the natural flow rate to surface of 263 bbl/day on an 8 mm choke.
The oil water contact in this area of the field had originally been assumed to be at -1,872 metres sub-sea. The new well has not encountered an oil water transition zone and has flowed oil from a zone that is 10 meters below previously 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 0.64 km south east of Pad 5, and is now connected to our existing production facilities.
Media details:
Tom Blackwell +44 207 920 2330
Source: Average production data is based on monthly production reports submitted to tax authorities for MET payment purposes. Peak production is based on internal operations reports.
[1] The Company records production in metric tonnes. Barrelization ratios are used for illustrative purposes only and are calculated based on the Company's estimate of the typical API of oil produced from specific fields. The barrelization ratios used are 7.67 bbl / tonne for Exillon WS and 7.44 bbl / tonne for Exillon TP. Total production was 37,108 tonnes for Exillon WS, 13,116 tonnes for Exillon TP and 50,224 tonnes for the Group during the 31 day period.
[2] "Peak daily production" represents the Company's estimate of aggregate production on the day on which aggregate production reached its maximum during the period. It does not represent the combined peak production of each separate field on different days, which may be higher.