Exillon Energy plc Acquisition of LLC VenlockNeft

Posted: 10th September 2012 09:57

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 it has secured a 100% interest in LLC VenlockNeft ("Venlock") for a total consideration of approximately US$2.5 million.

Venlock owns four Exploration, Appraisal and Production licenses in Timan-Pechora. Two of these licences lie immediately to the south of our existing ETP II, ETP IV and ETP V fields, adjacent to our existing oil production infrastructure. These two contiguous licences cover an area of 432 km², and expire in 2031 and 2032.

Another two licences have a total area of 643 km². These also expire in 2031 and 2032, and are located approximately 600 km to the south of Exillon TP.

All four licences are covered with 2D seismic, and have been audited according to the Russian classification of reserves. The initial assessment of cumulative recoverable reserves and resources across nine prospective structures was 160 mm bbl (mostly in the Russian "C3" category). One of these structures was tested by Venlock in 2009 with a well that flowed 260 bbl/day naturally to surface.
Our existing seven Exillon TP fields cover an area of approximately 344 km². The new licences add a further 1,075 km² of prospective areas, more than quadrupling the total area of Exillon TP to 1,419 km². 

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