March 19, 2008 20:41 ET

Oilexco Announces Year End Results

CALGARY, ALBERTA--(Marketwire - March 19, 2008) - Oilexco Incorporated ("Oilexco" or the "Company") (TSX:OIL) (LSE:OIL) is pleased to announce the Company's results for the year ended 31 December 2007.

Arthur Millholland, President and Chief Executive Officer, commented:

"2007 was a landmark year for Oilexco as it realised the benefits of its aggressive growth strategy in the UK North Sea, making significant strides in the key areas of production, exploration, and appraisal and development activities. In particular, the commencement of production from the Brenda/Nicol field has transformed the Company's financial outlook, whilst the Huntington discovery is one of the most exciting UK finds in recent years.

"Oilexco will continue its development programme in 2008 targeting an exit rate of 45,000 barrels of oil per day, and continue its extensive exploration and appraisal program with its two rigs under long term contract."


Transformed Financial Results

- Revenue increased to $345.4 million (2006: $8.8 million)

- EBITDA rose to $265.6 million (2006: ($9.7) million)

- Net Income of $76.3 million (2006: ($14.0) million)

- Raised additional equity funds and debt capacity, providing Oilexco with the flexibility to fund operational activities for 2007 and beyond


- Average daily production of oil and gas for the whole of 2007 of 11,748 BOE/day

- Average oil prices achieved of $79.19 per barrel (2006: $63.96)

Exploration, Appraisal and Development Drilling

- Oilexco continued its intensive exploration and appraisal drilling throughout 2007 and announced successes at Shelley, Kildare, Huntington, Ptarmigan and Bugle

- Acquisition of Balmoral FPV provides the Company with the ability to pursue additional production from stranded assets in the immediate area


- Balanced program of exploration, appraisal and development drilling in 2008, with a total capital budget of $707 million

-- Oilexco will drill an additional 5 production wells in the area of the Balmoral FPV

--- The Company plans to invest in equipment and maintenance for the Balmoral FPV in preparation to receive additional production

-- Two production wells on Shelley will be drilled in the summer, and well completions and tie-ins to the Sevan Voyageur will occur in the fall, with first production targeted for Q4 2008

-- Appraisal drilling is planned for the Huntington field in 2008 in both the Paleocene Forties and Jurassic Fulmar zones.

--- Oilexco and its partners are working on development solutions for Huntington, targeting first oil in late 2009 / early 2010

-- Targeting 2008 exit rate of 45,000 barrels of oil per day

-- Exploration drilling for 2008 is planned for the Delta, Shelley North and Manhattan prospects

The results and associated Management Discussion and Analysis and Financial Statements are included below and copies are available at www.oilexco.com and www.sedar.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
    (403) 262-5441
    Oilexco Incorporated
    Brian L. Ward
    Chief Financial Officer
    (403) 262-5441
    Oilexco Incorporated
    Rob Elgie
    Manager Investor Relations
    (403) 262-5441
    Website: www.oilexco.com
    Pelham PR
    James Henderson
    Managing Director
    44 (20) 7743 6673
    Pelham PR
    Alisdair Haythornthwaite
    44 (20) 7743 6676
    London Stock Exchange - Joint Brokers
    Canaccord Adams Limited
    Clayton Bush, Vice-President
    44 (20) 7050 6500