SOURCE: Lexaria Corporation

January 19, 2007 09:00 ET

Phase I Drilling in Mississippi Successfully Completed

VANCOUVER, BC -- (MARKET WIRE) -- January 19, 2007 -- Lexaria Corp. (OTCBB: LXRA) (the "Company" or "Lexaria") announces that the final 2 wells in the Phase I, 10-well drilling program in which the Company has a 20% interest have been drilled and completed and have led to new oil and gas discoveries.

Our 9th well in the program, PP F-29 has been completed. The well was successful in multiple zones, with a total of 36 net feet of pay, which is the largest pay we have encountered in our program and considerably greater than an average Frio well. Porosity ranged from 24.0% to 34.7%. This well is expected to begin production in February.

The 10th well, the PP-F-12 has also been drilled and completed. Although natural gas was the target and has been encountered, there are also strong indications that this may be primarily a new oil discovery. Work is underway to test this well and more information will be released when available. At this time we consider PP-F-12 to be a new discovery.

Generally wet conditions in Southern Mississippi have slowed our operations in some cases, particularly regarding tie-ins and production, but have not materially impacted our ability to conduct our operations.

Four earlier-completed wells, PP F-39; PP F-40; PP F-42; and PP F-118; have been producing limited amounts of gas since August, 2006. Production has been limited by a lack of compression, but these wells have cumulatively produced 26,802 mcf of gas to the end of December, 2006. Lexaria has paid all its pro-rata costs associated with all the above noted wells.

About Lexaria Corp.

Lexaria Corp. is an oil & gas company active in Mississippi, Oklahoma and in Alberta, Canada. The main focus currently is Mississippi, where it holds between 20% and 40% gross interests in various gas and oil projects. Lexaria routinely evaluates additional oil & gas projects and corporate opportunities.

Statements which are not historical facts are forward-looking statements. The Company makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors but they include and are not limited to the existence of underground deposits of commercial quantities of oil and gas; cessation or delays in exploration because of mechanical, operating, financial or other problems; capital expenditures that are higher than anticipated; or exploration opportunities being fewer than currently anticipated. The Company has no official gas or oil reserves at this time and may not have sufficient funding to thoroughly explore, drill or develop its properties. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors which may be identified from time to time in the Company's public announcements and filings.

Press Release #200701

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