Oilexco Intersects Oil in Latest UK North Sea Appraisal Well

Oilexco Brenda Block
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Oilexco reports that oil has been intersected in Oilexco's 100% owned well 15/25e-11. The oil/water contact intersected by 15/25e-11 is at a higher elevation than that intersected in the Oilexco 15/25b-10 well located 1.5 kilometers to the southwest. This difference in elevation suggests the 15/25e-11 "well cluster" is evaluating a new oil accumulation, separate from the "Brenda West" oil accumulation currently defined by the Oilexco wells 15/25b-9 and 15/25b-10. Currently the 15/25e-11 well-bore is being plugged back to a point where drilling will commence on the second well-bore of the "well cluster", 15/25e-11Z. The bottom-hole location of 15/25e-11Z is targeted to be 1.25 kilometers west of the 15/25e-11 bottom-hole location. Following the drilling and logging of the 15/25e-11Z well-bore, drilling operations will commence on the third well-bore of the "well cluster" 15/ 25e-11Y. This well-bore, targeting a location 1.0 km northwest of the current 15/25e-11 will be tested after drilling and logging operations are completed, as this well-bore is being drilled as a standard sized hole (12.25 inches), verses the slim holes (8.5 inches) of the first two well-bores of the "well cluster".

Oilexco Incorporated operates in the UK North Sea through its wholly owned subsidiary Oilexco North Sea Limited. Oilexco's current focus in the UK North Sea is on the following 100% owned Blocks: Block 15/25b, a 20th Round award, and Block 15/25e-East, an August 2004 Out of Round award. Block's 15/25b and 15/25e are located in the Outer Moray Firth of the UK Central North Sea, 120 kilometers northeast of Aberdeen.

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