OILEXCO INCORPORATED
TSX : OIL
LSE : OIL

OILEXCO INCORPORATED

August 14, 2007 17:49 ET

Oilexco Reports Incident Aboard Exploration Drilling Vessel Resolved

CALGARY, ALBERTA--(Marketwire - Aug. 14, 2007) - Oilexco Incorporated ("Oilexco" or " the Company") (TSX:OIL) (LSE:OIL) and its wholly owned subsidiary, Oilexco North Sea Limited, today reported that the semi-submersible rig Ocean Guardian, which is under contract to the Company from Diamond Offshore Drilling UK Limited, experienced a fire in its engine room at 18:20 U.K. time today while operating in the UK North Sea. The fire was completely extinguished by the vessel's fire suppression system a short time later. All personnel were accounted for and no injuries were reported. As part of standard safety procedures non-essential personnel were evacuated from the vessel to nearby platforms and arrangements are being made for their return to the Ocean Guardian.

The fire was completely contained within the engine room. The well remained under control throughout the incident and is secure. There is no environmental damage reported from the fire. Oilexco will work in conjunction with Diamond Offshore Drilling and the authorities to investigate the incident, and to ensure a safe environment onboard the vessel before drilling resumes.

The Ocean Guardian rig is one of two drilling vessels under long term contract to Oilexco and was conducting appraisal drilling on its 100% owned Shelley oil accumulation on Blocks 22/2b and 22/3a. This incident did not impact the Company's production from its Brenda/Nicol Fields.

About the Company

Oilexco is an oil and gas exploration and production company active in the United Kingdom. Oilexco's producing properties, exploration and development activities are located in the UK Central North Sea, specifically in the Outer Moray Firth and Central Graben areas. Oilexco operates in the United Kingdom through its wholly owned subsidiary, Oilexco North Sea, a company registered under the laws of England and Wales. Oilexco shares are listed for trading on the London Stock Exchange (LSE) and the Toronto Stock Exchange (TSX) under the symbol "OIL".

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.

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
    Oilexco Incorporated
    Rob Elgie
    Manager Investor Relations
    (403) 262-5441
    Website: www.oilexco.com
    or
    Pelham PR
    James Henderson
    Managing Director
    44 (20) 7743 6673
    or
    Pelham PR
    Alisdair Haythornthwaite
    Associate Director
    44 (20) 7743 6676
    or
    Canaccord Adams Limited
    Clayton Bush
    Vice President
    44 (20) 7050 6500
    or
    Merrill Lynch International
    Andrew Osborne
    Managing Director
    44 (20) 7996 1000