SOURCE: Lexaria Corporation

September 24, 2007 09:00 ET

Lexaria Corp.: Oil Discovery Exceeds Expectations

VANCOUVER, BC--(Marketwire - September 24, 2007) - Lexaria Corp. (OTCBB: LXRA) (the "Company" or "Lexaria") -- Lexaria announces that it has received flow test results from the previously drilled PP F-12 oil and gas discovery at Palmetto Point, Mississippi. The Company is very pleased to report that this oil discovery has exceeded our early expectations.

The PP F-12 well completed a 24-hour production test on the minimum sized choke considered possible. It flowed 100 barrels of oil per day on a 12/64 choke, with pressure that stabilized at 230 lbs/ft. The producing zone is less than 3,000 feet from surface. The well is expected to be placed into production next week, likely at a slightly larger choke size. During the production test, the F-12 well produced no water or gas. If these initial production rates are sustainable, then the F12 well could generate gross payback in less than 60 days of production.

The PP F-12 field discovery is a major advance for the company. Development of this field is expected to begin immediately, and will initially consist of the first two development wells to be drilled as soon as mobilization can occur. The Company hopes to have all three of these oil wells drilled and producing by December.

Additional development wells in this new field are expected to be drilled in 2008, after future production data is received and analyzed. Possible development plans for the field could also include horizontal drilling, which can result in production increases of 200% or more as compared to vertical wells in similar formations.

Lexaria Corp. holds a gross 30% working interest in the PP F-12 discovery well and all development wells drilled on its 160-acre lease. Lexaria also holds a gross 50% working interest in future wells in the Palmetto Point area, which surrounds on all sides the PP-F12 discovery well lease. All 32,000 acres of the Palmetto Point area have been shot with 3D seismic.

Lexaria considers the Palmetto Point F-12 well and field to be an important discovery and its exploration team is pursuing possible similar look-alike targets in the Palmetto Point area as it attempts to replicate the success of the F-12 discovery.

Separately, Lexaria has completed the drilling of two additional gas exploration wells recently, the PP F-90 and the PP F-100. Both of these wells encountered natural gas, but in quantities considered uneconomical, and thus they are being plugged and abandoned. Considering the success of the Company's efforts in the PP F-12 field, Lexaria is shifting its immediate focus to the thorough development of this discovery and exploration for additional look-alike oil fields.

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 #200719

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