SOURCE: Lexaria Corporation

November 26, 2007 08:00 ET

Two New Wells to Be Drilled and Operations Review

VANCOUVER, BC--(Marketwire - November 26, 2007) - Lexaria Corp. (OTCBB: LXRA) (the "Company" or "Lexaria") Lexaria announces its intent to participate in the drilling of two new wells, and reviews its oil and gas exploration and production operations below.


Lexaria expects to participate in the drilling of two more exploration wells in the Palmetto Point area of Southwestern Mississippi prior to Christmas shutdowns, subject to acceptable field conditions. The new drill locations have been reviewed by an independent third party geophysicist and confirmed by Lexaria's Operator. Although all exploration wells should be considered high-risk, Lexaria has a high degree of confidence in these proposed well locations. Lexaria owns a 50% gross interest in these two wells as well as future wells in this area.


The Company previously announced an important oil discovery at Belmont Lake. The original oil discovery well in the Belmont Lake oil field was the PP F-12 which began production on Oct 2 and is currently producing approx. 110 barrels of oil per day. This well intersected 26-feet of oil pay. The second well in this field, the PP F-12-3, intersected 32-feet of oil pay and is now producing at a rate higher than 115 barrels of oil per day. Both these wells are flowing unassisted and are producing at rates higher than the Company had expected. Lexaria Corp. has a 30% gross interest in these wells and in the development wells expected to be drilled in this oil field. The Company expects that there could ultimately be as many as 6-8 wells eventually producing from this Belmont Lake oil field.

The Company expects the production from the existing oil wells to substantially contribute towards an immediate goal of achieving positive cash flow. Meanwhile Lexaria also continues its review of seismic and other data to prioritize additional exploration targets as it attempts to replicate the Belmont Lake success.


Lexaria continues to produce natural gas in previously-drilled gas wells. Currently Lexaria is producing natural gas from 8 wells, and has another 4 gas wells temporarily shut-in but expected to begin or resume production during the current fiscal quarter.


Lexaria Corp also has one producing oil well in Oklahoma. The Isbill #2-36 well continues to produce at an average rate of between 40-45 barrels of oil per day, with slightly more than 10Mcf/d natural gas. Lexaria owns a 7.5% interest in this well and subsequent wells to be drilled on this lease. The more recently drilled Isbill #3-36 did not encounter commercial quantities of hydrocarbons and was plugged and abandoned.


Lexaria Corp holds a gross 30% working interest in the wells of the Belmont Lake Oil Field. Lexaria also holds a gross 50% working interest in future wells in the Palmetto Point area, which surrounds on all sides the Belmont Lake lease. All 32,000 acres of the Palmetto Point area have been shot with 3D seismic. Palmetto Point is one area of focus within the larger roughly 200,000 acre area in which the Company is working within a 50-well area of mutual interest.

Investors are invited to visit the Lexaria Corp. IR Hub at where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.

About Lexaria Corp.

Lexaria Corp. is an oil & gas company active in Mississippi, Oklahoma and in Alberta, Canada. The main focus currently is Mississippi, where it holds between 30% and 50% gross interests in various gas and oil projects. Lexaria routinely evaluates additional oil & gas projects and corporate opportunities.

Statements which are not historical facts are forward-looking statements. The Company makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors but they include and are not limited to the existence of underground deposits of commercial quantities of oil and gas; cessation or delays in exploration because of mechanical, operating, financial or other problems; capital expenditures that are higher than anticipated; or exploration opportunities being fewer than currently anticipated. The Company may not have sufficient funding to thoroughly explore, drill or develop its properties. Access to capital, or lack thereof, is a major risk. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors which may be identified from time to time in the Company's public announcements and filings.

Press Release #200726

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