Exillon Jumps on Increase in Russian Oil Reserves: London MoverNidaa Bakhsh
Exillon Energy Plc, a U.K. company drilling for oil in Russia, climbed the most in more than 16 months in London trading after saying total production rose 45 percent in 2012 and its reserves beat targets.
Total proven reserves rose 56 percent to 196 million barrels last year versus 2011, the Isle of Man-based company said today in a statement. Proven and probable reserves, referred to as 2P, increased by 96 percent to 520 million barrels, it said.
“Our target was to double our 2P reserves within three years,” Mark Martin, Exillon’s chief executive officer, said in the statement. “We have done this in one year.”
The shares rose 10 percent to close at 162 pence, the biggest gain since Oct. 28, 2011. That values the company at 262 million pounds ($396 million).
“Exillon has achieved a significant milestone in approximately doubling its audited 2P reserves well ahead of schedule,” according to a note by Investec Plc. “We maintain our view that Exillon offers investors a low-risk growth story in geological terms and is well placed financially to grow production.”
Exillon plans to drill 24 wells this year, 50 percent more than last year, it said. The company operates in Western Siberia and Timan Pechora.