OILEXCO INCORPORATED
TSX VENTURE : OIL
AIM : OIL

OILEXCO INCORPORATED

June 27, 2005 11:33 ET

Oilexco Announces Closing of Pounds Sterling 30 Million Financing

CALGARY, ALBERTA--(CCNMatthews - June 27, 2005) -

Not for Distribution to U.S. Newswire Services or for Dissemination in the United States

Oilexco Incorporated (TSX VENTURE:OIL) (AIM:OIL) ("Oilexco") announces that it has closed its previously announced share issue of 31,000,000 Common Shares. The Common Shares were issued by way of a short form prospectus and were priced in pounds Sterling at Pounds Sterling 0.98 each or approximately $2.22 Canadian. Aggregate gross proceeds of the issue were Pounds Sterling 30.4 million or approximately $68.8 million Canadian. The majority of the Subscribers of the issue were European institutions. Oilexco will direct the proceeds of this issue towards its 2005 UK North Sea Drilling Program and for general corporate purposes.

The Drilling Program commenced in mid March utilizing the Transocean Semi-submersible Sedco 712. To date, Oilexco has drilled five penetrations at two different locations, the results of which have been previously announced. In addition a horizontal test well was successfully completed over the week-end by Oilexco at Brenda. The horizontal well 15/25b-8Z, succeeded in confirming the location of the northern limit of the Brenda oil accumulation. Operations at 15/25b-8Z are expected to be completed later in the week.

Oilexco's 2005 UK North Sea Drilling Program will continue with the drilling of four to five new prospects during the balance of the year prior to the commencement of development drilling at the Brenda field.

Oilexco is listed on the Alternative Investment Market of the London Stock Exchange plc ("LSE-AIM") and the TSX Venture Exchange ("TSX-V"), trading under the symbol OIL.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The Common Shares will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

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, production and development timetables, costs to complete wells and field development. 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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