OILEXCO INCORPORATED
AIM : OIL
TSX : OIL

OILEXCO INCORPORATED

January 25, 2006 10:16 ET

Oilexco Closes US$245 Million Project Financing with The Royal Bank of Scotland

CALGARY, CANADA--(CCNMatthews - Jan. 25, 2006) - Oilexco Incorporated (TSX:OIL) (AIM:OIL) ("Oilexco") and its wholly owned subsidiary Oilexco North Sea Limited have signed debt facilities totalling US$245,000,000 over five years (the "Project Facilities") to fund the development of Oilexco's 100% owned Brenda field and 70% interest in the nearby Nicol field. The Project Facilities, fully underwritten by The Royal Bank of Scotland plc are comprised of a US$225 million revolving facility available to meet all of Oilexco's currently budgeted costs of developing both fields and for general corporate purposes and a US$20 million contingent facility for unbudgeted field development cost overruns.

"This debt financing takes Oilexco a few steps closer to our goal of becoming a significant UK North Sea oil producer in 2007. The Project Facilities, in addition to funding the Brenda-Nicol development, will provide Oilexco with flexibility in funding its objectives over the next few years. The continued support of The Royal Bank of Scotland plc as exclusive arranger of debt financing for Oilexco is greatly appreciated. Their expertise in the North Sea allows us to fully execute our business plan," said Arthur Millholland, President of Oilexco.

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.

Oilexco is listed on the Alternative Investment Market of the London Stock Exchange plc and the Toronto Stock Exchange, in each case trading under the symbol OIL.

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