OILEXCO INCORPORATED
AIM : OIL
TSX : OIL

OILEXCO INCORPORATED

November 18, 2005 08:27 ET

Oilexco Accepts US$245 Million Financing from The Royal Bank of Scotland plc.

LONDON, UNITED KINGDOM--(CCNMatthews - Nov. 18, 2005) - Oilexco Incorporated ("Oilexco") (TSX:OIL) (LSE-AIM:OIL) announces that its wholly owned subsidiary Oilexco North Sea Limited has accepted a written offer from The Royal Bank of Scotland plc ("RBS") for a US$245 million 5 year term facility (the "Project Facility") to develop Oilexco's 100% owned Brenda field and 70% interest in the nearby Nicol field The Project Facility will be provided by RBS subject to satisfactory documentation, due diligence and achievement of all required conditions precedent. The aggregate US$245 million is composed of a US$225 million revolving facility available initially to meet all of Oilexco's currently budgeted costs of developing both fields and thereafter for general corporate purposes and a US$20 million junior contingent facility for unbudgeted field development cost overruns. A number of other ancillary facilities will also be provided by RBS to Oilexco in conjunction with the Project Facility which are also subject to satisfactory documentation.

RBS has also agreed to the immediate expansion of Oilexco's existing Bridge Facility from Pounds Sterling 10 million to Pounds Sterling 25 million to fund anticipated development expenditure prior to financial close of the Project Facility, currently anticipated in late January 2006.

"The recent approval of the Brenda Field Development Plan and this debt financing puts the key building blocks in place for Oilexco to achieve our stated goal of becoming a full cycle oil & gas independent with significant production in 2006. This US$245 million credit facility will provide Oilexco with flexibility in funding its objectives over the next few years. The continued support of RBS as exclusive arranger of debt financing for Oilexco is greatly appreciated and their expertise in the North Sea has been an asset for us., We are now preparing the Nicol Field Development Plan for review by our joint venture partners and submission to the Department of Trade and Industry for approval." said Art Millholland, President of Oilexco.

Forward Looking Statements

This disclosure contains certain forward-looking estimates 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 the Company 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 estimates 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.

Oilexco is listed on the Alternative Investment Market of the London Stock Exchange plc ("LSE-AIM") and the Toronto Stock Exchange ("TSX"), 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
    Website: www.oilexco.com