Exillon Acquires Sinatiyskoye License
Exillon Energy plc, with assets in two oil-rich regions of northern Russia, Timan-Pechora ("Exillon TP") and West Siberia ("Exillon WS"), announced the acquisition of the Sinatiyskoye License.
On December 30, 2011, Exillon acquired the Sinatiyskoye exploration and production license in a state auction for a total consideration of USD 1.3 million. The license is valid until December 30, 2036, and will be designated by the Group as "ETP VII".
ETP VII borders the southern boundary of the Group's existing ETP II field, with its existing oil production infrastructure. The license covers an area of 130.4 km². For reference, the Group's existing six Exillon TP fields cover an area of approximately 214 km².
ETP VII is already largely covered by 2D seismic data which has identified eight significant geological structures. Tectonically the eastern part of ETP VII is located in the Khoreiverskaya depression, and the western part is at the intersection of Khoreiverskaya depression and Kolvinskiy swell. The potential of the license relates to sediments in the lower Silurian period.
The ETP VII acquisition represents a significant addition to Exillon's portfolio. The Group continues to develop an optimal exploration strategy for its undeveloped assets in Timan Pechora, notably the ETP VI and ETP VII fields, and intends to communicate further details of this strategy over the next few months.