SOURCE: Lexaria Corporation

August 21, 2007 09:00 ET

Lexaria Corp: Oil & Gas Production and Drilling Update

VANCOUVER, BC--(Marketwire - August 21, 2007) - Lexaria Corp. (OTC BB: LXRA) (the "Company" or "Lexaria") provides the following production update from its interests in Mississippi and Oklahoma.

Production of natural gas has generally increased during 2007 as additional wells have been connected and existing wells optimized. Gross production has been as follows:

Phase I Production (20% - 30% WI)
April     16,503 mcf
May       16,360 mcf
June      18,176 mcf
July      23,156 mcf

Phase II Production (45% WI)
April     3,621 mcf
May       3,212 mcf
June      2,920 mcf
July      2,788 mcf

Total Production (20% - 45% WI)
April     20,124 mcf
May       19,572 mcf
June      21,096 mcf
July      25,944 mcf

Only one well from the Phase II program has been connected. Additional wells from both Phase I and Phase II are expected to be connected and producing soon. Our Mississippi Area of Mutual Interest (AMI) has over 7,500 miles of 2D seismic and 250 square miles of 3D seismic already shot which have identified over 100 drill targets. The immediate focus area, Palmetto Point, is a 32,000-acre area within the much larger AMI of over 200,000 acres. We are exploring for and during the last year have encountered both oil and gas bearing zones in this drilling program.

In Oklahoma, the Isbill #2-36 well has been producing oil and gas for several months. Production has stabilized at approximately 40-45 barrels oil per day and 10Mcf/d natural gas. Lexaria has a 7.5% interest in this well and remaining drilling prospects in this Owl Creek property.

In recent drilling operations, the PP F-111 which was spud on August 11 has reached total depth. Sidewall cores indicated a non-commercial natural gas encounter and as a result this well is being plugged and abandoned.

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.

Contact Information