Exillon Energy plc, a London listed independent oil producer with assets in two oil-rich regions of northern Russia, Timan-Pechora (“Exillon TP”) and West Siberia (“Exillon WS”), today issues its preliminary unaudited results for the year ended 31 December 2011.
- Average daily oil production increased by 90% from 4,656 bbl/day in 2010 to 8,884 bbl/day in 2011. Exillon publishes production reports on a monthly basis and in February 2012 average production was 11,584 bbl/day.
- We had previously expected to reach a production level of 17,000 bbl/day by the end of June 2012. We now believe that this level is more likely to be achieved by the end of 2012. This delay has been caused by a number of operational difficulties, including slower than expected mobilization of rigs.
- We currently plan to drill an additional 12 wells in Exillon WS and 11 wells in Exillon TP in 2012.
- In January 2012 we announced that total proved (“1P”) recoverable reserves had increased by 12% to 125 million barrels and total proved plus probable (“2P”) reserves had increased by 11% to 265 million barrels. Total proved plus probable plus possible (“3P”) reserves decreased by 9% to 400 million barrels.
- We expect reserves growth to continue in 2012 as a result of our ongoing programme of appraisal and exploration.
- EBITDA increased by 314% from US$4.7 million in 2010 to US$19.5 million in 2011. We define EBITDA as earnings before interest, tax, depletion and depreciation, adjusted to exclude foreign exchange loss, loss on write-off of non-current assets and share based compensation costs.
- Our net loss for the year, which includes depreciation costs, foreign exchange translation effects, loss on disposal of non-current assets and share based compensation costs, increased to US$10.0 million from US$3.6 million.
- We generated positive operating cashflows of US$34.1 million in 2011, compared to negative operating cashflow of US$6.7 million in 2010.
- Exillon raised US$146.1 million of equity in 2011. Our cash balance was US$117.6 million at 31 December 2011 and US$122.7 million as of 16 March 2012.
Mark Martin, Chief Executive Officer, said:
“During 2011 Exillon increased oil production by 90%, EBITDA by 314% and 2P reserves by 12%. During 2012 we intend to continue to invest in order to achieve further increases in production, EBITDA and reserves.
“We look forward to meeting our shareholders at our Capital Markets Day which is being held later today in London.”