July Production Report and Drilling Update

Source: www.gulfoilandgas.com 8/2/2012, Location: Asia

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 unaudited production data for the month of July 2012 ("the Period").

Well East EWS I - 54 was spudded on 29 May 2012 and drilled in 18 days on the northern part of the East EWS I field. The well flowed water-free oil naturally to the surface with a combined test flow rate of 721 bbl/day on an 8 mm choke.

The well encountered the Jurassic P reservoir at -1,857 metres sub-sea, confirming 14.9 metres of effective vertical net pay and 30 metres of effective measured net pay for production due to the angled trajectory of the wellbore. In addition the well encountered 4.5 metres of effective vertical net pay of pre-Jurassic reservoir. This was tested separately, and resulted in the natural flow rate to surface of 263 bbl/day on an 8 mm choke.

The oil water contact in this area of the field had originally been assumed to be at -1,872 metres sub-sea. The new well has not encountered an oil water transition zone and has flowed oil from a zone that is 10 meters below 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 0.64 km south east of Pad 5, and is now connected to our existing production facilities.


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