EXILLON ENERGY PLC - Interim Management Statement (17/2013)

| | POLISH FINANCIAL SUPERVISION AUTHORITY | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | | | UNI - EN REPORT No | 17 | / | 2013 | | | | |
| | Date of issue: | 2013-04-23 | | | | | | | | | |
| | Short name of the issuer | | | | | | | | | | |
| | EXILLON ENERGY PLC | | | | | | | | | | |
| | Subject | | | | | | | | | | |
| | Interim Management Statement | | | | | | | | | | |
| | Official market - legal basis | | | | | | | | | | |
| | Art. 56 ust. 1 pkt 2 Ustawy o ofercie - informacje bieżące i okresowe | | | | | | | | | | |
| | Unofficial market - legal basis | | | | | | | | | | |
| | Contents of the report: | | | | | | | | | | |
| | 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. Production1 (bbl/day) 14,869 15,186 16,422 Peak Production2 (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. -- _ W załączeniu znajduje się polskie tłumaczenie komunikatu. Oficjalną i obowiązującą wersją jest tekst angielski Kontakt dla mediów: Łukasz Chudy email: lukasz.chudy@cook-comm.com tel: +48 (022) 412 06 70 | | | | | | | | | | |
| | Annexes | | | | | | | | | | |
| | File | Description | | | | | | | | | |
| | Interim Management Statement - tlumaczenie PL.pdf | | | | | | | | | | |

REPORT
INFORMATION ABOUT THE ENTITY
SIGNATURE OF PERSONS REPRESENTING THE COMPANY

| | | EXILLON ENERGY PLC | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| | | (fullname of the issuer) | | | | | |
| | | EXILLON ENERGY PLC | | Energetyka (ene) | | | |
| | | (short name of the issuer) | | (sector according to clasification of the WSE in Warsow) | | | |
| | | | | Wyspa Man | | | |
| | | (post code) | | (city) | | | |
| | | Fort Anne, Douglas, Isle of Man IM1 | | 5PD | | | |
| | | (street) | | (number) | | | |
| | | +44 1624 638300 | | +44 1624 638333 | | | |
| | | (phone number) | | | (fax) | | |
| | | (e-mail) | | | (web site) | | |
| | | (NIP)
| | | (REGON) | | |

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INFORMATION ABOUT THE ENTITY
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