OilExco Begins Testing First North Sea Well

Oilexco will proceed with production testing of the well 15/25b-6 ("Brenda"), the initial well of its UK North Sea drilling program. The 15/25b-6 well intersected a series of oil-bearing Paleocene Forties sands, the thickest of which has 26 feet of high quality oil pay. In addition to this sand, several other thin bedded oil bearing sands were also intersected. These intervals will be perforated and flow tested for a sufficient period to evaluate the production characteristics of the reservoir. Completion and testing operations on the 15/25b-6 well are planned to be completed over the next ten days.

Oilexco's UK North Sea drilling program is a two (2) well program on License P1042 (100% working interest), on Block 15/25b in the Outer Moray Firth, targeting oil in the Paleocene Forties Sandstone. The surface location of 15/25b-6 is approximately 150 meters west of the 15/25b-3 undeveloped discovery, which tested 2,690 bbl/d of 39 degrees oil from the Forties Sandstone from 20 feet of net pay in 1990. The second well of the program will be drilled immediately after completion of the initial well. This well on a separate structure also targeting oil in the Forties sandstone, is located 4 kilometers northwest of the first location. Both locations are covered by 3D seismic and AVO analysis.

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