OILEXCO INCORPORATED
AIM : OIL
TSX : OIL

OILEXCO INCORPORATED

July 13, 2005 11:17 ET

Oilexco to Participate in Black Horse Appraisal

CALGARY, CANADA--(CCNMatthews - July 13, 2005) - Oilexco Incorporated (TSX:OIL) (AIM:OIL) ("Oilexco") announces that its wholly owned subsidiary Oilexco North Sea Limited is participating in the appraisal of the "Black Horse" oil discovery located in Block 15/22, in the UK Central North Sea. The "Black Horse" discovery well 15/22-16 was drilled in 2002. The well flowed 38 degrees API oil at a maximum rate of 6,583 bbl/d. The oil flow was from 67 feet of perforations in the Jurassic Galley Sandstone. The 15/22-16 well is currently suspended.

Under the terms of the participation agreement, Oilexco is paying 60% of the cost of the first "Black Horse" appraisal well to earn a 40% interest in the "Black Horse" discovery area, which includes the discovery well 15/22-16. Oilexco's share of the expenditures to drill the first appraisal well is estimated at Pounds Sterling 8,400,000. The appraisal well is expected to spud in about two weeks time utilizing the Transocean Semi-Submersible Sedco 712. Drilling operations are anticipated to take 84 days, with a targeted total depth of 14,510 feet.

"The Black Horse appraisal drilling opportunity continues Oilexco's focus on undeveloped oil discoveries and low risk exploration 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".

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. 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