EXI.L Regulatory News (EXI)

11 May 2011 07:00



Exillon Energy

11 May 2011 - Exillon Energy plc ("Exillon Energy", the "Company" or the "Group") (EXI.LN), a British listed independent oil producer with assets in two oil-rich regions of northern Russia, Timan-Pechora ("Exillon TP") and West Siberia ("Exillon WS"), is pleased to announce that appraisal well 3 (EWS II - 139) successfully found oil on the western part of the EWS II field.

Appraisal well 3 (EWS II - 139) which was spudded on the 4 April 2011 was drilled in 31 days on a western margin of the EWS II field. The well was designed to test a western extension to the EWS II field, and successfully confirmed the presence of 28 meters of effective net oil pay in an area that is currently mapped as a zero net pay zone (Miller and Lents December 2010 reserves report). The well also showed that oil water contact zone is at least 25 meters lower than previously anticipated, which further supports the Groups hypothesis that EWS II and EWS III fields are in communication.

The well was drilled directionally 0.6 km to the west from a standalone well pad. Testing of the well will be completed in Q3 2011.

This new well has 28 meters of net pay within the Jurassic, making it the thickest Jurassic net oil pay encountered within the EWS II field to date. The discovery is the result of a thorough understanding of reservoir geology.