OILEXCO INCORPORATED
AIM : OIL
TSX : OIL

OILEXCO INCORPORATED

April 04, 2007 15:12 ET

Oilexco Closes Over Allotment Option on Its Underwritten Prospectus Offering

CALGARY, ALBERTA--(CCNMatthews - April 4, 2007) -

- NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES -

Oilexco Incorporated (TSX:OIL)(AIM:OIL) ("Oilexco" or the "Company") is pleased to announce that it has closed the Over-Allotment Option of its previously announced underwritten prospectus offering.

Further to the company's press release of March 13, 2007, Canaccord Adams Limited has exercised the over-allotment option on the Company's previously announced underwritten prospectus offering. The Company has issued an additional 2,250,000 shares at (Pounds Sterling 3.44) for gross proceeds of approximately US$15 million. Gross proceeds of the Offering, including the over allotment option, are approximately US$115.8 million (Pounds Sterling 59.34 million) from a total of 17,250,000 shares issued at (Pounds Sterling 3.44). The additional shares issued pursuant to the exercise of the over allotment option are currently trading on the TSX and it is anticipated that they will be admitted to trading on the AIM Market of the London Stock Exchange on the April 13, 2007.

Canaccord Adams Limited led the underwriting syndicate for the offering, which included Maison Placements Canada Inc.

Oilexco intends to use the proceeds of the offering for further appraisal, evaluation and exploration programme expenditures in the North Sea and for general working capital purposes.

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.

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, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

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
    Canaccord Adams Limited
    Robin J. Birchall
    Vice-President
    +44 20 7050 6741
    or
    Canaccord Adams Limited
    Adam A. Janikowski
    Associate
    +44 20 7050 6746