Oilexco Announces Increased Reserves at Nicol Field

Oilexco has received a reserves report as of September 30, 2005 for Oilexco's interest in the Nicol Field located in the UK North Sea. The report by Sproule International Limited was prepared for the purpose of evaluating Oilexco's Petroleum and Natural Gas reserves in accordance with reserve definitions and standards outlined in the Canadian Oil and Gas Evaluation Handbook (COGEH), which are compliant with National Instrument 51-101 (NI 51-101).

Oilexco successfully appraised the Nicol Field located in Block 15/25a in April and May of this year with the well 15/25a-13 and two side tracks 15/25a-13Z and 15/25a-13Y. Oilexco working interest in the Nicol field is 70%.

The following tables summarize the reserves and values as presented in the Sproule Report:

------------------------------------------------------------------------
                                         Remaining Oil Reserves
                                                   Mbbls
------------------------------------------------------------------------
                                    Gross   Company Gross   Company Net
------------------------------------------------------------------------
Proved Undeveloped                  8,600           6,020         6,020
------------------------------------------------------------------------
Probable                            5,100           3,570         3,570
------------------------------------------------------------------------
Total, Proved plus Probable        13,700           9,590         9,590
------------------------------------------------------------------------
Possible                            5,200           3,640         3,640
------------------------------------------------------------------------
Total                              18,900          13,230        13,230
------------------------------------------------------------------------
------------------------------------------------------------------------


------------------------------------------------------------------------
                                Net Present Values of Future Net Revenue
                                         Forecast Prices and Costs
                                          As of September 30, 2005
                                               After UK Taxes
------------------------------------------------------------------------
                                    At 0%     At 5%    At 10%    At 15%
                                    M$CDN     M$CDN     M$CDN     M$CDN
------------------------------------------------------------------------
Proved Undeveloped                130,994   108,503    91,229    77,659
------------------------------------------------------------------------
Probable                           89,279    67,957    53,814    44,016
------------------------------------------------------------------------
Total, Proved plus Probable       220,273   176,460   145,042   121,676
------------------------------------------------------------------------
Possible                           90,742    63,586    47,389    37,081
------------------------------------------------------------------------
Total                             311,015   240,045   192,431   158,757
------------------------------------------------------------------------
------------------------------------------------------------------------
The additions to Oilexco's reserves reported as at December 31, 2004 are significant as Oilexco's interest in the Nicol Field was not included in any previous reserve evaluation. Proved Reserves have increased 52%, Probable Reserves have increased 38%, with total Proved plus Probable Reserves increasing by 46%. The reserve valuations have also increased dramatically due to increased crude oil prices from those at December 31, 2004. Net Present Values of Future net Revenue for total Proved plus Probable reserves, based on Sproule's Forecast Prices as of September 30th, 2005 at 0%, 5%, 10%, and 15% discount rates have increased over those reported as at December 31, 2004 by 53%, 59%, 66%, and 72% respectively. The Sproule Report does not include any other reserves previously evaluated, only Oilexco's interest in the Nicol Field.

In addition to the updated reserves at Nicol, Oilexco also announces that Sproule International Limited has also been engaged, by the Reserves Committee and management of Oilexco Incorporated, to be the ongoing Independent Reserves Evaluator of Oilexco Incorporated. "Sproule's long history and experience in Canada and worldwide should give confidence to Oilexco's stakeholders going forward" said Arthur Millholland, CEO speaking on behalf of Oilexco's Reserves Committee.

Comparability

Oilexco's Petroleum and Natural Gas reserves are prepared in accordance with National Instrument 51-101; Standards for Disclosure for Oil and Gas Activities, which sets out requirements and standards for disclosure by Canadian reporting issuers engaged in oil and gas activities. Oilexco's Petroleum and Natural Gas reserves may not be comparable to reserves of companies outside of Canadian jurisdiction which are prepared in accordance to standards other than those required under National Instrument 51-101. Details of National Instrument 51-101, along with accompanying Canadian Oil and Gas disclosure standards can be found on the website of the Alberta Securities Commission at www.albertasecurities.com.

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