SOURCE: Lexaria Corporation

January 22, 2007 19:00 ET

Phase II Oil and Gas Drilling in Mississippi Underway

JACKSON, MS -- (MARKET WIRE) -- January 22, 2007 -- Lexaria Corp. (OTCBB: LXRA) (the "Company" or "Lexaria") has begun drilling on its second phase program in Mississippi. Lexaria has an Area of Mutual Interest ("AMI") of up to 50 additional wells and is the largest single participant in this Phase II AMI with a 40% interest.

The first well in Phase II, the CMR-USA-39-14, reached total depth of 3,200 feet on 09/12/06 and encountered 18 feet of pay. This well is now connected and has begun producing natural gas, volumes of which will be announced when production has stabilized.

The second well in this Phase II is the Dixon #1 well, which on 01/18/07 reached total depth of 8,650 feet. This well targeted the Wilcox formation but, when logged, showed no hydrocarbons and is therefore being plugged and abandoned.

The next well scheduled to be drilled is the TEC-1 Closure, which is a larger than normal Frio anomaly. We expect to spud within the next two weeks, weather permitting.

The Mississippi AMI is over 200,000 acres in size and has over 7,500 miles of 2D seismic and 250 square miles of 3D seismic already shot, identifying over 100 drill targets to date.

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 #200702

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