March 30, 2009 17:35 ET

Oilexco Advises Late Filing of Regulatory Documents

CALGARY, ALBERTA--(Marketwire - March 30, 2009) - Oilexco Incorporated ("Oilexco" or "the Company") (TSX VENTURE:OIL) (LSE:OIL) advises that it will be delaying the filing of its annual audited financial statements, management's discussion and analysis ("MD&A"), the annual information form ("AIF"), the management information circular and related CEO and CFO certifications beyond the statutory deadline of March 31, 2009. The delay is made under the provisions of Part 4 of the National Policy 12-203 Cease Trade Orders For Continuous Disclosure Defaults while the Company continues to work on a re-organization plan under the Companies' Creditors Arrangement Act (Canada) ("CCAA"). No assurances can be given that a re-organization plan will be successfully developed or that it will be approved by the creditors of Oilexco Inc., or that further extensions of the CCAA order will be granted.

As previously advised by the Company, the UK courts granted an order placing Oilexco North Sea Limited ("ONSL") in Administration under the Insolvency Act of 1986 (UK) on January 7, 2009, when Oilexco received notice from its banking syndicate that the syndicate would not provide additional funds to allow for safe operations. On February 5, 2009, Oilexco received a court order under the CCAA for a stay of proceedings against the Company that was subsequently extended until April 30, 2009. Ernst & Young Inc. is the court-appointed Monitor.

On March 25, 2009, the Administrators of ONSL advised Oilexco Inc. that they had reached an agreement with Premier Oil plc ("Premier Oil") for a share purchase of ONSL for the amount of US$505 million. Given the role of the Administrators, Oilexco Inc. did not have any advance information about, or control over, the amount of the sale of ONSL or the selection of its purchaser. The dollar value of the purchase by Premier Oil of ONSL does not fully satisfy the debts of the secured and unsecured creditors of ONSL. Oilexco Inc. had provided certain parental guarantees to a number of entities for debts or commitments made by ONSL, including to the members of the banking syndicate. The shares of ONSL comprise substantially all of the assets of Oilexco Inc.

Oilexco Inc. continues to have a contract with the Administrators to provide certain services that are deemed critical to the successful completion of the sale of ONSL, and as such, continues to be cash flow positive at the present time.

Oilexco Inc. can not state at this time when it expects to file the financial statements and other year end documents. Until such documents are filed, Oilexco Inc. intends to comply with the alternative information guidelines outlined in Part 4.4 of National Policy 12-203. These guidelines require Oilexco Inc. to file bi-weekly default status reports, in the form of press releases, containing any material changes to the information in this release, all actions taken by Oilexco Inc. to remedy the default, particulars of any failure by Oilexco Inc. to fulfil the provisions of the alternative information guidelines, any subsequent defaults of Oilexco Inc. requiring a default announcement and any other material information concerning the affairs of Oilexco Inc. not previously disclosed. Oilexco Inc. intends to issue the first default status report on April 13, 2009 if the year end regulatory documents are not filed before this date.

About the Company

Oilexco shares are listed for trading on the London Stock Exchange (LSE) and the TSX Venture Exchange (TSX-V) 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 uncertainty of court proceedings under the Companies' Creditors Arrangement Act (Canada), 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. On January 7, 2009, Oilexco's wholly-owned subsidiary Oilexco North Sea Limited was subject to an order from the UK court appointing Administrators under the UK Insolvency Act. On February 5, 2009, the Company obtained a court order for protection under the Companies' Creditors Arrangement Act (Canada).

Contact Information

  • Oilexco Incorporated
    Arthur S. Millholland
    (403) 262-5441
    Oilexco Incorporated
    Brian L. Ward
    Chief Financial Officer
    (403) 262-5441
    Oilexco Incorporated
    Rob Elgie
    Manager Investor Relations
    (403) 262-5441