OILEXCO INCORPORATED
TSX : OIL
LSE : OIL

OILEXCO INCORPORATED

March 19, 2008 20:37 ET

Oilexco Announces Increased Reserves and Values

CALGARY, ALBERTA--(Marketwire - March 19, 2008) - Oilexco Incorporated ("Oilexco") (TSX:OIL) (LSE:OIL) is pleased to announce its reserves for the year ended December 31st, 2007. The Company's reserves were independently evaluated by Sproule International Limited ("Sproule") in accordance with standards set out in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook"), as specified by National Instrument 51-101.

Highlights

- 53% increase in 1P reserves to 40,824.6 Mboe (2006: 26,614.1 Mboe)

- 46% increase in 2P reserves to 62, 925.8 Mboe (2006: 42,994.0 Mboe)

- 61% increase in 3P reserves to 91,130.3 Mboe (2006: 56,713.0 Mboe)

For the year ended December 31st, 2007 Oilexco's reserves as evaluated by Sproule, utilizing Sproule's forecast prices at December 31st, 2007, are summarized in the table below as follows:



----------------------------------------------------------------------------
Net Present
Values
Net Present Values (M$US)
(M$US) Before Tax
Net Oil Reserves Before Tax Discounted
Category (Mboe) Discounted 0%/Year 5%/Year
----------------------------------------------------------------------------
Proved 40,824.6 $2,259,046 $1,965,612
----------------------------------------------------------------------------
Probable 22,101.2 $1,291,832 $1,036,416
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Proved plus Probable 62,925.8 $3,550,878 $3,002,028
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Possible 28,204.4 $1,547,364 $1,194,024
----------------------------------------------------------------------------
Proved plus Probable
plus Possible 91,130.3 $5,098,242 $4,196,052
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Full details of Oilexco's Reserves as at December 31, 2007, and presented in the format specified by National Instrument 51-101, are located in the Company's Annual Information Form dated March 19, 2008 and filed on SEDAR, which is available at www.sedar.com or on the Company's website at www.oilexco.com.

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
    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
    Director
    44 (20) 7743 6676
    or
    London Stock Exchange - Joint Brokers
    Canaccord Adams Limited
    Clayton Bush
    Vice-President
    44 (20) 7050 6500