8 Jun 2012 08:15
Exillon Energy plc - May Production Reportand Drilling Update
8 June 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 unaudited production data for the month of May 2012.
·; Average daily production1 for the Group was 11,320 bbl/day during the period.
·; Average daily production for Exillon TP was 3,434 bbl/day, and for Exillon WS it was 7,886 bbl/day during the period.
·; Peak daily production 2 for the Group was 12,247 bbl/day during the period.
Average production at Exillon WS during May was restricted by works being carried out on our intrafield pipeline network. Current production from Exillon WS is now approximately 9,500 bbl/day.
We expect to make our June production announcement by 15 July 2012.
Drilling Update - East EWS I - 51
Well East EWS I-51, which was spudded on 7 May 2012, was drilled in 20 days on the northern part of the East EWS I field. This is the first development well drilled from pad 5 following the success of exploration well 50 drilled last year.
The well flowed water-free oil naturally to the surface with a flow rate of 892 bbl/day on an 8 mm choke and 1,218 bbl/day on a 10 mm choke. The well encountered the Jurassic P reservoir at 1,861 meters, confirming 15.0 meters of effective vertical net pay within the Jurassic. Due to the trajectory of the well bore this exposed 30.7 meters of effective net oil pay for production.
Oil water contact in this area of the field was previously assumed at 1,872 meters, and well 51 was designed to test this assumption. The new well has not encountered an oil water transition zone and confirmed presence of oil at least 4 meters below the 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 0.6 km to the north from the existing well pad 5, and is now connected to our existing production facilities.
Drilling Update - North EWS I - 61
Well North EWS I - 61, which was spudded on 30 April 2012, was drilled in 31 days on the North EWS I field.
The well encountered the Jurassic P reservoir at 1,856m, confirming 9.5 meters of net oil pay. The well was drilled directionally with a high level of deviation (1.6km) to the north of Pad 6. We are currently analysing the results and a decision on how best to test and develop the well will be made once this analysis is complete.
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 31,875 tonnes for Exillon WS, 14,310 tonnes for Exillon TP and 46,185 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.