July 16, 2009 21:27 ET

Oilexco Obtains Order for Orderly Liquidation

CALGARY, ALBERTA--(Marketwire - July 16, 2009) - Oilexco Incorporated ("Oilexco" or "the Company") (TSX VENTURE:OIL) obtained a court order today in its ongoing Companies' Creditors Arrangement Act proceedings permitting Oilexco and its subsidiary, Oilexco Technical Services Inc., to liquidate the remainder of their respective assets and propose a plan of compromise and arrangement to creditors that will have the effect of distributing all net proceeds of liquidation to creditors in proportion to the amount of each creditor's proven claim. The liquidation is expected to be concluded by September 30, 2009. After the liquidation has concluded and the proceeds have been distributed to creditors, there is not expected to be any remaining assets of value for shareholders.

Ernst & Young Inc. has been acting as the court appointed Monitor while the Company has been under the protection of the CCAA and will oversee the liquidation. All Oilexco employees will be terminated by July 31, 2009, except for those people deemed by Oilexco and approved by the Monitor as essential to the liquidation process who will continue working on a contract basis.

About the Company

Oilexco shares are listed for trading on the TSX Venture Exchange (TSX-V) under the symbol "OIL".

Forward Looking Statements

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. Such statements involve substantial known and/or unknown risks and uncertainties, some of which may be beyond Oilexco's control, including: the uncertainty of court proceedings under the Companies' Creditors Arrangement Act (Canada). As such, caution should be exercised by the reader wherever forward looking statements are made. On January 7, 2009, Oilexco's then wholly-owned subsidiary, Oilexco North Sea Limited ("ONSL"), was subject to an order from the UK court appointing administrators. The assets held within ONSL comprised nearly all the assets held by the parent company, Oilexco Incorporated. On March 25, 2009, the Administrators announced that an agreement had been reached with an outside party to purchase ONSL and the purchase transaction closed on May 21, 2009.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Oilexco Incorporated
    Arthur S. Millholland
    (403) 262-5441
    Oilexco Incorporated
    Rob Elgie
    Manager Investor Relations
    (403) 262-5441