May 27, 2009 13:20 ET

Oilexco Receives CCAA Extension

CALGARY, ALBERTA--(Marketwire - May 27, 2009) - Oilexco Incorporated ("Oilexco" or "the Company") (TSX VENTURE:OIL) advises that it received an extension of the court order for protection under the Companies' Creditors Arrangement Act ("CCAA") (Canada). The new order will now expire July 7, 2009. The order permits Oilexco (including its wholly-owned Alberta subsidiary Oilexco Technical Services Inc.) to remain in possession and control of its remaining assets as it continues to restructure.

During the court hearing, the Company requested the court's approval to participate in the drilling of a well in the UK North Sea as part of the Company's restructuring attempt. One of the Company's creditors, The Royal Bank of Scotland plc ("RBS"), strongly opposed the Company's application to participate in the drilling, and requested the court move in such a manner that would permit RBS to initiate a bankruptcy application against the Company in a short time frame. While the court rejected the Company's request to participate in the drilling of a well, the court stated that it supports a successful reorganization. As such, the Company will continue its restructuring efforts.

About the Company

Oilexco shares are listed for trading on the TSX Venture Exchange (TSX-V) under the symbol "OIL".

Forward Looking Statements

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. Such statements involve substantial known and/or unknown risks and uncertainties, some of which may be beyond Oilexco's control, including: the uncertainty of court proceedings under the Companies' Creditors Arrangement Act (Canada), the impact of general economic conditions in the areas in which Oilexco operates, civil unrest, industry conditions, changes in 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. As such, caution should be exercised by the reader wherever forward looking statements are made. On January 7, 2009, Oilexco's wholly-owned subsidiary, Oilexco North Sea Limited ("ONSL"), was subject to an order from the UK court appointing administrators. The assets held within ONSL comprised nearly all the assets held by the parent company, Oilexco Inc. On March 25, 2009, the Administrators announced that an agreement had been reached with an outside party to purchase ONSL. The Company is currently under a court order for protection under the Companies' Creditors Arrangement Act (Canada).

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Oilexco Incorporated
    Arthur S. Millholland
    (403) 262-5441
    Oilexco Incorporated
    Rob Elgie
    Manager Investor Relations
    (403) 262-5441