OILEXCO INCORPORATED
AIM : OIL
TSX : OIL

OILEXCO INCORPORATED

February 20, 2007 17:06 ET

Oilexco Incorporated: News Release

CALGARY, CANADA--(CCNMatthews - Feb. 20, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Oilexco Incorporated ("Oilexco") (TSX:OIL) (AIM:OIL) yesterday announced a bought deal financing to raise approximately US$100.7 million (Pounds Sterling 51.6 million) with an option (the "Over-Allotment Option") pursuant to which Canaccord may purchase the lesser of: (i) the "over-allocation position" determined as at the Closing Date; and (ii) that number of Common Shares which represents 15% of the Common Shares sold pursuant to the Offering at the Issue Price. Oilexco has today been informed by the underwriter, Canaccord Adams Limited ("Canaccord") that based on the interest to date, Canaccord anticipates it will be in a position to exercise the over-allotment option in full at closing, subject to determining the underwriters' over-allotment position at closing. If the over-allotment option is exercised in full, the gross proceeds raised pursuant to the offering will be approximately US$115.8 million (Pounds Sterling 59.3 million) in aggregate.

Art Millholland, President and CEO of Oilexco, commented: "We are extremely pleased with the excellent interest in this issue, demonstrating the continued support of institutions for the strategy of our Company".

The transaction is subject to certain conditions including normal regulatory approvals. The common shares of Oilexco will be offered in the provinces of Alberta, British Columbia and Ontario by way of a short form prospectus and on a private placement basis elsewhere, including in the United Kingdom. Closing is anticipated to occur on or about March 13, 2007.

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.

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.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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
    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