Onyx Spot Oil Regulatory News (OIL)

29 May 2007 08:32

Oilexco Inc29 May 2007 PRESS RELEASE Oilexco Makes Multizone Light Oil Discovery at Huntington Calgary, Canada, May 29, 2007 - Oilexco Incorporated ("Oilexco") (TSX: OIL; LSE-AIM: OIL) announces that its wholly owned subsidiary Oilexco North Sea Limitedhas made a multiple zone light oil discovery on its 40% owned HuntingtonProspect in Block 22/14b in the UK Central North Sea. Oilexco's partners in thediscovery are Altinex Oil (UK) Limited (20%), E.ON Ruhrgas UK Exploration andProduction 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. Oilbearing reservoir sands were encountered in the Paleocene Forties at a depth of8,960 feet, and in the Upper Jurassic Fulmar at a depth of 12,750 feet. In thePaleocene Forties sand 98 feet of oil bearing reservoir was intersected.Wireline pressure and sampling tools recovered 42 API sweet crude from thisinterval. In the Upper Jurassic Fulmar sand 58 feet of oil bearing reservoir wasintersected. After completion of the wireline evaluation of the Upper Jurassic Fulmarinterval, preparations for drill stem testing of the Paleocene Forties intervalwill commence. Testing operations are expected to be completed in two to threeweeks time. Further appraisal of the Huntington oil accumulations is planned for the fourthquarter using one of Oilexco's two long term contracted semi-submersibledrilling rigs. The structures tested by the 22/14b-5 well are significant. Thisappraisal will confirm the size of the structures currently estimated to be 14sq Km for the Paleocene Forties sand, and 7.0 sq Km for the Upper JurassicFulmar sand. The drilling will also evaluate the structurally higher crestalareas of the structures as the 22/14b-5 well was drilled in a flank position onboth structures. "We are very pleased with the results from the Huntington well", said OilexcoPresident and CEO Arthur Millholland. "This well adds to our enviable drillingsuccess in the UK Central North Sea lately. As well, we have identified twoanalogous Paleocene structures on our 72.7% owned Block 22/13b locatedimmediately west of our Block 22/14b block", he said. "One of these Paleocenestructures is of similar size to the one tested by the 22/14b-5 well" added MrMillholland. About the Company Oilexco is an oil and gas exploration and production company active in theUnited Kingdom. Oilexco's producing properties and exploration activities arelocated in the UK Central North Sea, specifically in the Outer Moray Firth andCentral Graben areas. The Company currently has one wholly owned subsidiary,Oilexco North Sea Limited, a company registered under the laws of England andWales. Oilexco trades on the Toronto Stock Exchange (TSX) in Canada and theLondon Stock Exchange's Alternative Investment Market (AIM) under the symbol"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. In accordance with the guidelines of the AIM market of the London StockExchange, Arthur Millholland P.Geol, President and CEO of Oilexco Incorporated,is the qualified person that has reviewed the technical information contained inthis press release. Oilexco is listed on the Alternative Investment Market of the London StockExchange plc and the Toronto Stock Exchange, in each case trading under thesymbol OIL. FOR FURTHER INFORMATION PLEASE CONTACT: Oilexco IncorporatedArthur S. Millholland, President, (403) 262-5441 or Brian L. Ward, Chief Financial Officer, (403) 262-5441 or Gerry L. Roe, Chief Operating Officer, (403) 262-5441 or Rob Elgie, Manager Investor Relations, (403) 262-5441 Canaccord Adams Limited Clayton Bush, Vice President, +44 (0)20 7050 6500 or Adam Janikowski, Associate, +44 (0)20 7050 6500 This information is provided by RNS The company news service from the London Stock Exchange