Exillon production up on new drilling techniques

Exillon Energy, the Russia focused oil and gas firm, has reported rises in earnings and production as operational changes at its sites in Timan-Pechora and West Siberia have started to pay off.

Oil production increased 48% in the six months to the end of June, compared to the same period of last year, to 2.1m barrels.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Exillon had $138.5m in the bank by the end of June; including debts, the net cash position was $38.3m.

Operationally the group has lots to be pleased about, with drilling speeds at the West Siberia site now down to around 20 days.

Mark Martin, Exillon's Chief Executive, said: "The completion of our oil treatment and power generation facilities combined with our new entry point into (the) Transneft pipeline network is expected to further improve EBITDA per barrel going forward."

He added: "Our new strategy of drilling wells at a 60 degree angle has materially increased each well's exposure to net pay resulting in higher average production levels from these wells."

The stock was up 0.6% at 11:59, but is still down 47% since the start of the year.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.