Exillon WS

Uninterrupted production at Exillon WS started in June 2010, upon completion of the pipeline, infield infrastructure and drilling projects.

In February 2010, Exillon WS started construction of a 39km pipeline from the EWS I oil field to a year-round state road. The pipeline was successfully completed in Q2 2010, and enabled the Group to unlock the potential of Exillon WS by making possible year-round production.

Infield oil processing facility

To reduce dependence on third parties and to improve the economics of oil production, the first stage of an infield oil processing facility was completed, allowing production of commodity oil. A permanent oil filling station next to the interstate road was also completed in 2010, shortening the transportation distance and permitting the use of higher capacity trucks.

Trucking

Commencement of oil processing at Exillon WS in October 2010 provided the Company with more options to sell its oil and to reduce transportation and processing costs further. The Group has now signed an agreement and started trucking oil from Exillon WS to the oil filling station owned by Ritek, which is about 70km closer than the previous alternative.