OILEXCO INCORPORATED
AIM : OIL
TSX : OIL

OILEXCO INCORPORATED

June 11, 2007 07:00 ET

Oilexco Announces First Oil From Brenda/Nicol Fields

CALGARY, ALBERTA--(Marketwire - June 11, 2007) - Oilexco Incorporated ("Oilexco") (TSX:OIL) (AIM:OIL) and its wholly owned subsidiary, Oilexco North Sea Limited, announce that production has begun at the Brenda/Nicol Fields in the UK Central North Sea.

The Company estimates production from the three wells in Brenda and one well in Nicol will average approximately 30,000 barrels of oil per day during the first full year of production.

"This is a great day for our Company", said Oilexco President and CEO Arthur Millholland. "This is our first development in the UK North Sea. I am extremely proud of our people. We have managed this project ourselves from conception to first oil. We have a lot to be proud about," added Mr Millholland.

The Company has a 100% working interest in both the Brenda and Nicol Fields located in Block 15/25b and 15/25a respectively. At Nicol, the Company has a 70% revenue interest which will revert to 100% after 1.25 million barrels of oil has been recovered from 30% of the Nicol production volumes. Brenda and Nicol were developed concurrently. Oil from the development is processed at the Balmoral Floating Production Vessel located 8km east northeast of Brenda in Block 16/21a. Oilexco owns a 7.9% non-operated interest in the Balmoral facility.

About the Company

Oilexco Incorporated is a Canadian Company engaged in oil and gas exploration and production in the United Kingdom. The Company's efforts are solely focused on the UK Central North Sea, specifically in the Outer Moray Firth and Central Graben areas. Oilexco's operations in the United Kingdom are conducted through its wholly owned subsidiary, Oilexco North Sea, a company registered under the laws of England and Wales. Oilexco trades on the Toronto Stock Exchange (TSX) in Canada and the AIM portion of the London Stock Exchange under the symbol "OIL".

Forward Looking Statements

This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond Oilexco's control, including: the impact of general economic conditions in the areas in which Oilexco operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with oil and gas operations, therefore Oilexco's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amounts of proceeds, which Oilexco will derive therefrom. All statements included in this press release that address activities, events or developments that Oilexco expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include future production rates, completion and production timetables and costs to complete wells, and production facilities. These statements are based on assumptions made by Oilexco based on its experience perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.

In accordance with the guidelines of the AIM market of the London Stock Exchange, Arthur Millholland P.Geol, President and CEO of Oilexco Incorporated, is the qualified person that has reviewed the technical information contained in this press release.

Contact Information

  • Oilexco Incorporated
    Arthur S. Millholland
    President
    (403) 262-5441
    or
    Oilexco Incorporated
    Brian L. Ward
    Chief Financial Officer
    (403) 262-5441
    or
    Oilexco Incorporated
    Gerry L. Roe
    Chief Operating Officer
    (403) 262-5441
    or
    Oilexco Incorporated
    Rob Elgie
    Manager Investor Relations
    (403) 262-5441
    Website: www.oilexco.com
    or
    Pelham Public Relations
    James Henderson
    Managing Director
    44 (20) 7743 6673
    or
    Pelham Public Relations
    Alisdair Haythornthwaite
    Associate Director
    44 (20) 7743 6676
    or
    Canaccord Adams Limited
    Clayton Bush
    Vice-President
    44 (20) 7050 6500
    or
    Merrill Lynch International
    Andrew Osborne
    Managing Director
    44 (20) 7996 1000