OILEXCO INCORPORATED
TSX : OIL
LSE : OIL

OILEXCO INCORPORATED

September 06, 2007 02:00 ET

Oilexco Achieves "Project Completion" Status From Royal Bank of Scotland plc

CALGARY, ALBERTA--(Marketwire - Sept. 6, 2007) - Oilexco Incorporated ("Oilexco" or "the Company") (TSX:OIL) (LSE:OIL) reports that it has received confirmation from its primary lender, the Royal Bank of Scotland plc ("RBS"), that Oilexco has achieved "Project Completion" status for its Brenda/Nicol Field. The key criterion for receiving this designation from RBS was surpassing total combined production of 1.56 million barrels from the Brenda/Nicol Fields. Oilexco began production from these fields in June.

"Reaching this milestone so quickly proves that the Brenda/Nicol Fields are capable of the production rates that we had estimated, which is approximately 30,000 barrels per day based on full days production", said Oilexco President and CEO Arthur Millholland. "We would have achieved this status even sooner but the Balmoral Floating Production Vessel, which receives and processes the oil from the Brenda/Nicol Fields, was shut down for a number of days in July as part of its annual pre-planned maintenance program."

The Company has a 100% equity interest in the Brenda Field (Block 15/25b) which contains 4 production wells, and a 70% equity interest in the Nicol Field (Block 15/25a) which contains 1 production well. Once Oilexco's partners in the Nicol Field have lifted a joint total of 1.25 million barrels from their shared 30% equity interest, Oilexco will assume a 100% equity interest in the Nicol Field.

Oilexco is currently conducting appraisal drilling on its 100% owned Shelley oil discovery (Blocks 22/2b and 22/3a) with the Ocean Guardian semi-submersible vessel. The Company's second semi-submersible vessel is conducting appraisal drilling on the Huntington oil discovery (Block 22/14) announced in May 2007, in which the Company has a 40% equity interest.

About the Company

Oilexco is an oil and gas exploration and production company active in the United Kingdom. Oilexco's producing properties, exploration and development activities are located in the UK Central North Sea, specifically in the Outer Moray Firth and Central Graben areas. Oilexco operates in the United Kingdom through its wholly owned subsidiary, Oilexco North Sea, a company registered under the laws of England and Wales. Oilexco shares are listed for trading on the London Stock Exchange (LSE) and the Toronto Stock Exchange (TSX) under the symbol "OIL".

Forward Looking Statements

This disclosure contains certain forward-looking statements 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 Oilexco 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 statements 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.

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
    or
    Oilexco Incorporated
    Rob Elgie
    Manager Investor Relations
    (403) 262-5441
    Website: www.oilexco.com
    or
    Pelham PR
    James Henderson
    Managing Director
    44 (20) 7743 6673
    or
    Pelham PR
    Alisdair Haythornthwaite
    Associate Director
    44 (20) 7743 6676
    or
    Canaccord Adams Limited
    Clayton Bush
    Vice-President
    44 (20) 7050 6500