Ramping up production by 90 per cent in a period of high oil prices may have swelled revenue at
As expected operating costs rose sharply, more than doubling to $80.4m on increased production – average daily oil output at Exillon’s fields in northern Russia and West Siberia hit 8,884 bopd, or 3.24m barrels in total. Reflecting the higher output, mineral extraction tax almost tripled to $64.5m and the average export duty rate grew 28 per cent. But it was mainly a $6.7m foreign exchange hit that led to a deepening operating loss of $7.1m.
Still, 23 wells are planned for this year, which should increase reserves again – 2P reserves rose 11 per cent to 265m barrels in 2011. And spending two-thirds of its $133m budget on infrastructure will also help drive operating costs down.
First Energy Capital expects 2012 EPS of 11¢.
|EXILLON ENERGY (EXI)|
|ORD PRICE:||195p||MARKET VALUE:||£315m|
|TOUCH:||195-196p||12-MONTH HIGH:||479p||LOW: 183p|
|DIVIDEND YIELD:||nil||PE RATIO:||na|
|NET ASSET VALUE||323¢||NET CASH:||$68.6m|
|Year to 31 Dec||Turnover ($m)||Pre-tax profit ($m)||Earnings per share (¢)||Dividend per share (p)|
*Prior to listing £1=$1.59
Horizontal drilling may increase production rates and reserves look set to grow again in 2012, but this is clearly another setback for Exillon and First Energy has cut its risked net asset value to 288p in response. Hold.
Last IC view: Fairly priced, 270p, 3 September 2011