Exillon Energy (LON:EXI) reported its second well success in three weeks, saying that EWS I – 43 well on the East EWS I field in West Siberia confirmed 15.5 metres of net oil pay.
Investors cheered the report as shares in Exillon rallied 8.5 percent to 207.1 pence in early deals, valuing the company at £334.5 million.
The EWS I – 43 well, which was spudded exactly one month ago on the south-eastern part of the East EWS I field, flowed water-free oil at a rate of 595 barrels per day.
In mid-September, Exillon reported that its EWS I - 44 well on the same field intersected 7.3 metres of net oil pay, flowing at a rate of 768 barrels per day.
Once testing of EWS I – 43 is completed, the well will be connected up to existing production facilities.
Exillon is currently engaged in a large-scale drilling campaign at the Exillon WS license area, having drilled 15 wells so far this year. The company has recently begun construction of an entry point to the Transneft pipeline system after securing regulatory approvals.
The extensive drilling programme has helped Exillon reach a new record average monthly output of 9,161 barrels per day in June this year, up 37 percent from December 2010.
Average daily production for the first six months of the year jumped 146 percent compared to the same period last year to 7,860 barrels per day.
In terms of financing, the company said it is well funded following a placing in April that raised £94 million and it will now “continue expansion in a rapid but prudent manner”.
Besides the Exillon WS license in West Siberia, the company also owns the Exillon TP license in the Timan-Pechora basin in northern Russia.