SOURCE: Lexaria Corporation

December 11, 2007 10:27 ET

Lexaria Corp.: Strong Increases in Proved Reserves

VANCOUVER, BC--(Marketwire - December 11, 2007) - Lexaria Corp. (OTCBB: LXRA) (the "Company" or "Lexaria") today announces increases in its proved oil and gas reserves in Mississippi and Oklahoma.

In the 12 months ending October 31, 2007, the Company increased its gas reserves by 638%. It increased its net oil reserves to 78,698 barrels compared to none one year earlier. Future net income after expenses and royalty tax increased by 3,467%. The present value of future net income, discounted by 10%, increased by 3,443%.

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NET          Hydrocarbon   Natural Gas (Mcf) Future NET    Present Worth of
RESERVES as  Liquids (Bbl)                   Income After Future Net Income
of Oct 31,                                   Expenses and   Discounted at
                                             Royalty Tax,$     10%/yr.
---------------------------------------------------------------------------
Proved Developed
Producing       40,158          401,881        4,643,682      3,741,877
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Proved Developed
Non-Producing     0                0                0              0
---------------------------------------------------------------------------
Proved
Undeveloped     38,540             0           2,516,550      1,969,420
---------------------------------------------------------------------------
TOTAL PROVED    78,698          401,881       $7,160,232     $5,711,297
---------------------------------------------------------------------------
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(All figures based on third-party Licensed Professional Engineer proved reserve reports as of 31/10/07.)

The Company's policy is to only report proved reserves and is therefore not reporting on probable reserves. The proved reserves reported herein reflect Lexaria's Net interests. The Future Net Income category is after estimated operating expenses and royalty taxes have been deducted.

The reserve figures from one year ago are shown below for comparison:

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---------------------------------------------------------------------------
NET          Hydrocarbon   Natural Gas (Mcf) Future NET    Present Worth of
RESERVES as  Liquids (Bbl)                   Income After Future Net Income
of Oct 31,                                   Expenses and   Discounted at
                                             Royalty Tax,$     10%/yr.
---------------------------------------------------------------------------

Proved Developed
Producing         0             62,960          206,510         165,860
---------------------------------------------------------------------------
Proved Developed
Non-Producing     0               0                0               0
---------------------------------------------------------------------------
Proved
Undeveloped       0               0                0               0
---------------------------------------------------------------------------
TOTAL PROVED      0             62,960         $206,510        $165,860
---------------------------------------------------------------------------
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(All figures based on third-party Licensed Professional Engineer proved reserve report as of 31/10/06.)

Approximately 78% of the Company's reserves, by value, are oil; and 22% are natural gas. All of the increases in oil reserves are the result of successful exploration programmes, as are the vast majority of the increases in natural gas reserves. Lexaria plans to continue the development of the Belmont Lake oil field in 2008, as well as explore for additional new oil and natural gas fields in its Mississippi projects.

President Chris Bunka said, "I'm pleased that in our first full year as a public company, we've created real value through our exploration and development programs in Mississippi and Oklahoma. I'm confident that we can continue to add value through further development of our existing Belmont Lake oil field, and through additional exploration drilling. We're also considering the opportunities in additional properties."

The Company is currently producing oil from 3 wells; and is producing natural gas from 11 wells. An additional 4 natural gas wells are either waiting to be connected or temporarily shut-in. Current total gross monthly cash flow is estimated at approximately $150,000 per month and is expected to result in positive net cash flow for the first quarter of fiscal 2008 ending January 31, 2008.

Separately, the Company also announces it has recently entered into a debt financing agreement of a total of $500,000, of which $250,000 was provided by the President of the Company. These funds will primarily be used for drilling and completion operations.

Investors are invited to visit the Lexaria Corp.IR Hub at www.agoracom.com/IR/Lexaria 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 LXRA@agoracom.com 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. Such forward-looking statements also include estimated cash flow of approximately $150,000 per month, oil and gas reserve quantities produced by third parties, and intentions to participate in future exploration drilling. 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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