Onyx Spot Oil Regulatory News (OIL)

16 Aug 2007 09:47

Oilexco Incorporated16 August 2007 CALGARY, ALBERTA--(Marketwire - Aug. 15, 2007) - Oilexco Incorporated ("Oilexco"or "the Company") (TSX:OIL) (LSE:OIL) announces that its wholly ownedsubsidiary, Oilexco North Sea Limited, has signed a Sale and Purchase Agreement("SPA") with CNR International (U.K.) Limited ("CNR") for the acquisition ofCNR's entire interests in the Balmoral Floating Production Vessel ("FPV"); andthe Balmoral, Glamis and Stirling Fields, which currently produce approximately1,800 barrels of oil per day, net to CNR; and certain exploration acreage, alllocated in Block 16/21 in the UK Central North Sea ("the Balmoral Properties"). The table below outlines Oilexco's current interests in the assets, thoseinterests acquired from CNR and Oilexco's total interests after the purchase. ---------------------------------------------------------------------------- Current Oilexco Acquired Interest Total OilexcoAsset Interest from CNR Interest----------------------------------------------------------------------------Balmoral FPV 7.994150% 70.121270% 78.115420%----------------------------------------------------------------------------Balmoral Field 7.994150% 70.121270% 78.115420%----------------------------------------------------------------------------Glamis Field 9.714286% 75.285714% 85.000000%----------------------------------------------------------------------------Stirling Field 0 68.680000% 68.680000%----------------------------------------------------------------------------Exploration Acreage 9.714286% 75.285714% 85.000000%---------------------------------------------------------------------------- The total amount paid by Oilexco for the acquisition of the Balmoral Propertiesis US$50 million, subject to normal closing adjustments. At closing the Companywill also provide a US$63 million letter of credit as part of a decommissioningsecurity agreement to cover anticipated future decommissioning liabilities aspart of the acquisition of the Balmoral Properties. The effective date of thetransaction is January 1, 2007. Oilexco intends to finance the acquisition ofthe Balmoral Properties through its existing credit facilities with the RoyalBank of Scotland. Closing of the transaction is expected to occur in the fourthquarter. The appointment of Oilexco as successor Operator of the Balmoral Properties issubject to the necessary approvals from the other joint interest holders of theBalmoral Properties and the UK Department of Business Enterprise and RegulatoryReform, formerly the Department of Trade and Industry. "This is a strategic geographical core area for us within the UK Central NorthSea given our Brenda and Nicol Fields, as well as interests we have in otherproperties in the vicinity", said Oilexco President and CEO Arthur Millholland."Having majority ownership of the Balmoral FPV will allow us to maximizeefficient operations at the facility, as well as to increase its throughput byoptimizing production from the Balmoral and Sterling fields. In addition we viewthe Balmoral FPV as being the preferred off-take solution for future satellitedevelopments in the area. We will aggressively pursue these opportunities asthey will allow us to maintain low unit operating costs." About the Company Oilexco is an oil and gas exploration and production company active in theUnited Kingdom. Oilexco's producing properties, exploration and developmentactivities are located in the UK Central North Sea, specifically in the OuterMoray Firth and Central Graben areas. Oilexco operates in the United Kingdomthrough its wholly owned subsidiary, Oilexco North Sea, a company registeredunder the laws of England and Wales. Oilexco shares are listed for trading onthe London Stock Exchange (LSE) and the Toronto Stock Exchange (TSX) under thesymbol "OIL". Forward Looking Statements This disclosure contains certain forward-looking statements that involvesubstantial known and unknown risks and uncertainties, certain of which arebeyond Oilexco's control, including: the impact of general economic conditionsin the areas in which Oilexco operates, civil unrest, industry conditions,changes in laws and regulations including the adoption of new environmental lawsand regulations and changes in how they are interpreted and enforced, increasedcompetition, the lack of availability of qualified personnel or management,fluctuations in commodity prices, foreign exchange or interest rates, stockmarket volatility and obtaining required approvals of regulatory authorities. Inaddition there are risks and uncertainties associated with oil and gasoperations, therefore Oilexco's actual results, performance or achievement coulddiffer materially from those expressed in, or implied by, these forward-lookingstatements will transpire or occur, or if any of them do so, what benefits,including the amounts of proceeds, which Oilexco will derive therefrom. Allstatements included in this press release that address activities, events ordevelopments that Oilexco expects, believes or anticipates will or may occur inthe future are forward-looking statements. These statements include futureproduction rates, completion and production timetables and costs to completewells, and production facilities. These statements are based on assumptions madeby Oilexco based on its experience perception of historical trends, currentconditions, expected future developments and other factors it believes areappropriate in the circumstances. FOR FURTHER INFORMATION PLEASE CONTACT:Oilexco IncorporatedArthur S. MillhollandPresident(403) 262-5441 orOilexco IncorporatedBrian L. WardChief Financial Officer(403) 262-5441 orOilexco IncorporatedGerry L. RoeChief Operating Officer(403) 262-5441 orOilexco IncorporatedRob ElgieManager Investor Relations(403) 262-5441 Website: www.oilexco.com orPelham Public RelationsJames HendersonManaging Director44 (20) 7743 6673 orPelham Public RelationsAlisdair HaythornthwaiteAssociate Director44 (20) 7743 6676 orCanaccord Adams LimitedClayton BushVice-President44 (20) 7050 6500 orMerrill Lynch InternationalAndrew OsborneManaging Director44 (20) 7996 1000 This information is provided by RNS The company news service from the London Stock Exchange