OILEXCO INCORPORATED
AIM : OIL
TSX : OIL

OILEXCO INCORPORATED

January 29, 2007 02:00 ET

Oilexco Updates Brenda Nicol Development

CALGARY, ALBERTA--(CCNMatthews - Jan. 29, 2007) - Oilexco Incorporated ("Oilexco") (TSX:OIL)(AIM:OIL) and its wholly owned subsidiary Oilexco North Sea Ltd are progressing toward the completion of the Brenda/Nicol oil development project located in Block 15/25 in the UK central North Sea. Severe weather has hampered the completion of the final work scope of the project since early November. Weather conditions improved for a short period in late December which allowed for the completion of the majority of the remaining sub-sea work scope in the field areas.

Progress on the work scope at the Balmoral floating production facility by the operator has also been impacted by the weather conditions. Activity at Balmoral resumed a week ago corresponding to the onset of favorable weather conditions. The remaining work scope to first oil is small, sequential in nature and sensitive to weather. If the return to average seasonal weather patterns continues, these tasks can be completed during the expected periods of reduced wind and wave height. No estimate of the timing of first oil from Brenda/Nicol can therefore be given at this time; however when the Company is able to reasonably assess the timing until completion and first oil, an update will be provided.

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.

Oilexco is listed on the Alternative Investment Market of the London Stock Exchange plc and the Toronto Stock Exchange, in each case trading under the symbol OIL.


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