Exillon Energy buying Komi resource producer for $2.5 mln
MOSCOW. Sept 10 (Interfax) - Britain's Exillon Energy is purchasing 100% in LLC VenlockNeft for $2.5 million, the company said in a statement.
The statement said: "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 km?, and expire in 2031 and 2032.
"Another two licences have a total area of 643 km?. 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."
According to the SPARKdatabase, 90% in Venlock belongs to Cyrpus-based DB Petroleum Holdings Limited. The remaining 10% is held by Regent Capital Management Limited, which is registered in the British Virgin Islands.
Exillon Energy (formerly Caspian Minerals plc) was founded using businessman Maksat Arip's assets. The company held an IPO on the London Stock Exchange in December 2009, which raised $100.7 million.
The company already has an asset in Komi, Exillon TP, which owns licenses for five fields. Exillon Energy is also developing five fields and seven prospective sections in the Khanty-Mansiysk Autonomous District. The company's proven and probable 2P reserves came to 265 million barrels on November 1, 2011.
Exillon Energy's net losses increased by 170% to $10 million in 2011 while EBITDA went up by four times to $19.5 million. The company's sales revenue rose by 140% to $203 million. Positive operational cash flow came to $34.1 million compared to a negative figure of $6.7 million for 2010.
The company hopes to bring daily production to 17,000 barrels by the end of this year.