UPDATE 2-Russia's Exillon Energy plans London IPO-sources

* Russia-focused oil firm plans IPO by end-2009-source

* Will be Russia's first London IPO since crisis struck

* High oil prices revive investor appetite for Russia

(Recasts, adds detail)

MOSCOW, Nov 3 (Reuters) - Exillon Energy, a Russia-focused oil producer, is planning what would be the first London initial public offering by a Russian company since the financial crisis, two sources with knowledge of the situation said.

The flotation will be only the second Russian IPO since the financial crisis hit in the summer of last year, and far larger than the $5 million share sale by biotech Stem Cell Institute on a local stock exchange. [ID:nL5626111]

But it also comes on top of more than $2 billion raised by Russian firms via bond and secondary share placements last week, as investors turned their gaze to Russia again after a period of panic selling at the end of 2008 and early 2009. [ID:nLT441217]

The price of oil has risen to full-year highs, providing a boost to the oil-dependent Russian economy and the exploration sector in particular, while the rouble has also strengthened.

A rebound in international stock markets is also encouraging a recovery on the IPO global market. For recent Reuters stories from the different regions that track the resurgent IPO market, please see [ID:nSP393789]

BUILD RESERVES

Exillon, registered in the Isle of Man and headquartered in Dubai, currently has 10 oil fields at early development stages in Russia's oil-rich regions of Timan-Pechora and West Siberia, according to its Web site, www.exillonenergy.com.

"The deal is expected to complete before the end of the year," one of the sources told Reuters on Tuesday.

A separate Moscow-based banking source said the deal was on track.

The company declined to comment.

In West Siberia, Exillon has a 50 percent interest and a contract to purchase the remaining 50 stake in a company whose main assets consist of five fields and seven prospects.

"The Exillon Group has a high quality reserve base that has potential for further development. The group plans to build reserves and increase the company's revenue base through appraisal," Exillon Group said on its website. (Editing by John Bowker and Simon Jessop)