Onyx Spot Oil Regulatory News (OIL)

14 Nov 2008 07:00

Oilexco Files Preliminary Prospectus for Convertible Bonds

/NOT FOR DISSEMINATION IN THE UNITED STATES OR DISTRIBUTION TO U.S.

NEWSWIRE SERVICES/

CALGARY, Nov. 13 /CNW/ - Oilexco Incorporated ("Oilexco" or the "Corporation") today announced that it has filed a preliminary prospectus with securities regulators in certain provinces of Canada for an offering of Convertible Senior Unsecured Bonds. The principal amount, conversion price and other terms of the offering will be determined by Oilexco after marketing by the underwriter, Canaccord Capital Corporation. The net proceeds from the offering will be used to partially repay bank indebtedness, to fund the Corporation's 2009 capital spending program and for general corporate purposes.

The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States unless exemptions from the registration requirements of such Act and applicable state securities laws are available.

About Oilexco

Oilexco is an oil and gas exploration and production company active in the United Kingdom. Oilexco's producing properties, exploration and development activities are located in the UK Central North Sea, specifically in the Outer Moray Firth and Central Graben areas. Oilexco operates in the United Kingdom through its wholly owned subsidiary, Oilexco North Sea Limited, a company registered under the laws of England and Wales. Oilexco shares are listed for trading on the London Stock Exchange (LSE) and the Toronto Stock Exchange (TSX) under the symbol "OIL".

Forward Looking Statements

This press release includes forward-looking statements regarding the proposed offering and the anticipated use of proceeds thereof. These forward-looking statements 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.

For further information: Oilexco Incorporated: Arthur S. Millholland, President, (403) 262-5441 or Brian L. Ward, Chief Financial Officer, (403) 262-5441 or Rob Elgie, Manager Investor Relations, (403) 262-5441; Pelham PR: James Henderson, Managing Director, 44 (20) 7743 6673 or Alisdair Haythornthwaite, Director, 44 (20) 7743 6676 (OIL. OIL)