OILEXCO INCORPORATED
AIM : OIL
TSX : OIL

OILEXCO INCORPORATED

June 05, 2007 17:11 ET

Oilexco to Test Fulmar at Huntington

CALGARY, CANADA--(Marketwire - June 5, 2007) - Oilexco Incorporated ("Oilexco") (TSX:OIL) (AIM:OIL) announces that its wholly owned subsidiary Oilexco North Sea Limited and its partners have decided to drill stem test the Upper Jurassic Fulmar sand in its recently announced multiple zone light oil discovery on its 40% owned Huntington Prospect in Block 22/14b in the UK Central North Sea. Oilexco's partners in the discovery are Altinex Oil (UK) Limited (20%), E.ON Ruhrgas UK Exploration and Production Limited (25%), and Carrizo Oil and Gas, Inc (15%).

The discovery well 22/14b-5 was drilled to a total depth of 13,325 feet. Wire line evaluation of the Upper Jurassic Fulmar sand at 12,750 feet indicates the entire 130 feet of Fulmar sand is oil bearing. Wireline pressure and sampling across this interval have recovered 40º API crude oil. Drill stem testing is planned to be conducted through 101 feet of perforations. Testing operations are expected to be completed in seven to ten days time.
After completion of the drill stem test of the Upper Jurassic Fulmar interval, preparations for drill stem testing of the Paleocene Forties interval will commence. This will also provide valuable data for pre-drill evaluations of two analogous Paleocene structures identified on Oilexco's 72.7% owned Block 22/13b located immediately west of the Block 22/14b block.

Further appraisal of the Huntington oil accumulations are planned for the fourth quarter using one of Oilexco's two long term contracted semi-submersible drilling rigs. The structures tested by the 22/14b-5 well are significant. This appraisal will confirm the size of the structures currently estimated to be 14 sq Km for the Paleocene Forties sand, and up to 23 sq Km for the Upper Jurassic Fulmar sand. The size of the structure associated with the Upper Jurassic Fulmar sand has increased dramatically due to the increase in oil column and a refined seismic interpretation resulting from the wire line evaluation.

"We are looking forward to the test results from the Huntington well", said Oilexco President and CEO Arthur Millholland. "This will be the first step in proving what we believe is a significant new oil discovery in the UK Central North Sea."

About the Company

Oilexco is an oil and gas exploration and production company active in the United Kingdom. Oilexco's producing properties and exploration activities are located in the UK Central North Sea, specifically in the Outer Moray Firth and Central Graben areas. The Company currently has one wholly owned subsidiary, Oilexco North Sea Limited, a company registered under the laws of England and Wales. Oilexco trades on the Toronto Stock Exchange (TSX) in Canada and the London Stock Exchange's Alternative Investment Market (AIM) 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.

In accordance with the guidelines of the AIM market of the London Stock Exchange, Arthur Millholland P.Geol, President and CEO of Oilexco Incorporated, is the qualified person that has reviewed the technical information contained in this press release.

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.

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