TIDMEXI
RNS Number : 9724C
Exillon Energy Plc
23 April 2013
Exillon Energy plc
Interim Management Statement
23 April 2013
Exillon Energy plc (EXI.LN), a London Premium listed oil
producer with assets in two oil-rich regions of northern Russia,
Timan-Pechora ("Exillon TP") and West Siberia ("Exillon WS"), today
issues its Interim Management Statement for the three month period
ending 31 March 2013 (the "period").
Highlights
-- Average daily production of 14,869 bbls/day in January,
15,186 bbls/day in February and 16,422 blls/day in March - in line
with internal budgets
-- Drilling currently ongoing or due to commence with a total of
23 wells are planned in 2013, 6 in Exillon TP and 17 in Exillon
WS
-- 41 workovers completed in Q1 2013
-- New 40km pipeline completed in Exillon WS doubling capacity
-- New 25km pipeline completed in Exillon TP which will allow
the sale of oil via a pipeline as opposed to by truck and the sale
of associated gas to a local refinery
Operations and Production
We produce oil 365 days a year. However the winter season allows
the easiest and cheapest access to our fields, and is therefore our
busiest time of year. Winter work consists of preparation for the
2013 drilling programme (constructing well pads and other
facilities, and stockpiling drilling materials) and workovers of
existing wells.
Drilling
We are currently drilling, or preparing to commence drilling,
from four well pads in Exillon WS (Pads 6, 7, 8 and 9) and three
well pads in Exillon TP (Pads 2, 3 and 5). A total of 23 wells are
planned - 6 in Exillon TP and 17 in Exillon WS. Most of our
drilling is likely to be completed in Q2 and Q3, and the results
will therefore be announced in Q2, Q3 and Q4. This extensive
drilling programme will allow us to continue to increase our
reserves, production and EBITDA during 2013.
Workovers
Workovers include fracture stimulations, acid treatments, pump
replacements, well deepenings and sidetracks, conversions of wells
to water injection, and various other types of well repair and
enhancements such as well testing. A total of 41 such procedures
were conducted on our wells during Q1. Well "down time" because of
workovers was approximately 350 well days during the period.
Construction
We achieved a great deal during a very busy winter. Our key
construction projects were completed on time and on budget.
In Exillon WS, we completed a new 40 km pipeline to our oil
filling station, which will operate with twice the capacity of the
existing pipeline. This increased capacity enables us to reduce the
pressure in the oil collection system, which in turn will allow us
to improve performance of some wells that were previously limited
by high pressure. Our existing pipeline will be converted to a gas
pipeline in order to utilize associated gas. In addition, we
completed 10 km of intrafield pipelines to connect remote well
pads. This will enable greater production from these fields,
particularly from the highly prolific Pad 5 and its close
neighbour, Pad 7.
In Exillon TP, we completed a 25 km oil pipeline and a 25 km gas
pipeline which will allow us to sell associated gas to a local
refinery, and to sell our oil via pipeline rather than by truck. In
addition the Group is currently finalizing completion of 4.2 km of
intrafield pipelines.
Production for Q1 was as follows:
Jan Feb Mar
----------------------- ------- ------- -------
Exillon WS Avg.
Production (bbl/day) 11,344 11,186 12,186
----------------------- ------- ------- -------
Exillon TP Avg.
Production (bbl/day) 3,525 4,000 4,236
----------------------- ------- ------- -------
Avg. Production(1)
(bbl/day) 14,869 15,186 16,422
----------------------- ------- ------- -------
Peak Production(2)
(bbl/day) 16,485 15,651 16,817
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 7.8037 bbl / tonne for Exillon WS and 7.44 bbl / tonne for
Exillon TP.
(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.
The reduction in production in January and February compared to
December was a result of our extensive workover programme described
above, and is in line with our budget.
Financials
During the period, we exported 463,868 barrels of oil at an
average realised price of approximately US$ 100.1per barrel, and
sold 936,742 barrels within Russia at an average realised price of
US$ 45.8 per barrel. The difference in the sales price of exports
and domestic sales is principally a function of export duty. We are
free to sell either for export or domestically, and our netbacks
for domestic and export sales are similar.
The average selling price for our oil continues to be higher
than our budgeted level of US$ 95 per barrel Urals (and the
equivalent level for domestic sales).
We ended Q1 with a cash balance of US$ 108.9 million. This
strong funding position gives us the flexibility to adjust our
drilling plans throughout the year. We have US$ 100.2 million of
debt, so our net cash position as at that date was US$ 8.7 million.
US dollars account for approximately 80% of our liquid assets, with
the remaining 20% held in Russian Rubles. We have no deposits in
Cyprus.
Capital expenditure during the period was approximately US$ 33.0
million (1Q 2012: US$ 28.6 million). Of total capital expenditure,
US$ 9.8 million was attributable to drilling, US$ 23.1 million to
infrastructure and US$ 0.1 million to seismic data acquisition and
interpretation.
During Q3, as previously announced, we obtained credit ratings
from S&P and Fitch. This gives us further flexibility to
enhance our balance sheet as and when market conditions permit.
Reserves
As previously announced, we doubled our Proven and Probable
("2P") reserves in March to over half a billion (520m) barrels. We
increased our Proven ("1P") reserves to 196m barrels, and our
Proven, Probable and Possible ("3P") reserves to over 880m barrels.
All of our reserves are oil, not gas. The most significant sources
of reserves growth were in our main producing fields in Exillon WS
and Exillon TP, where our infrastructure is already substantially
complete.
Media Contact
Tom Blackwell Blackwell@mcomgroup.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IMSGSGDSDBDBGXX
Exillon Energy (LSE:EXI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Exillon Energy (LSE:EXI)
Historical Stock Chart
From Jul 2023 to Jul 2024