OILEXCO INCORPORATED
AIM : OIL
TSX : OIL

OILEXCO INCORPORATED

November 21, 2005 08:12 ET

Oilexco Incorporated: Black Horse Appraisal Well Flows 5,248 Bbl/b

CALGARY, ALBERTA--(CCNMatthews - Nov. 21, 2005) - Oilexco Incorporated ("Oilexco") (TSX:OIL) (LSE-AIM:OIL) announces that the well 15/22-18, the first appraisal well to the "Black Horse" discovery located in Block 15/22 in the UK Central North Sea, has flowed oil at a maximum rate of 5,248 bbl/d. This flow was through a 34/64" choke, with a flowing well head pressure of 1446 psi from 80 feet of perforations. Flow rates were restricted by the test equipment available, and the onset of sand flow. The test program for the 15/22-18 well was extensive. The well was flowed on a restricted 16/64" choke for 2.5 days, followed by an extensive shut period. The purpose of the test was to fully assess the commerciality of the Black Horse oil accumulation.

Oilexco has a 40% interest in the Black Horse oil accumulation. The operator of the 15/22-18 well and the holder of the balance of the interest at Black Horse is Nexen Petroleum U.K. Limited.

"The Black Horse project is a continuation of Oilexco's focus on appraising undeveloped oil discoveries and drilling low risk exploration prospects in the UK Central North Sea", said Arthur Millholland President of Oilexco. "This project along with our Brenda and Nicol (15/25a-13) developments located 35 kilometers to the east continues Oilexco's evolution from an exploration concern to a UK North Sea focused full cycle exploration and production company."

Later in the week, the Sedco 712 will move to Oilexco's 45% owned Muness project located in Block 21/4b. At Muness Oilexco is targeting Gas-Condensate bearing Lower Cretaceous sands.

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 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 ("LSE-AIM") and the Toronto Stock Exchange ("TSX"), 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