Oilexco Pleased with Black Horse Appraisal Well Results

Black Horse Field
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Oilexco reports that the well 15/22-18, the first appraisal well to the "Black Horse" discovery located in Block 15/22 in the UK Central North Sea, has flowed oil at a maximum rate of 5,248 bbl/d. This flow was through a 34/64" choke, with a flowing well head pressure of 1446 psi from 80 feet of perforations. Flow rates were restricted by the test equipment available, and the onset of sand flow. The test program for the 15/22-18 well was extensive. The well was flowed on a restricted 16/64" choke for 2.5 days, followed by an extensive shut period. The purpose of the test was to fully assess the commerciality of the Black Horse oil accumulation.

Oilexco has a 40% interest in the Black Horse oil accumulation. The operator of the 15/22-18 well and the holder of the balance of the interest at Black Horse is Nexen Petroleum U.K. Limited.

"The Black Horse project is a continuation of Oilexco's focus on appraising undeveloped oil discoveries and drilling low risk exploration prospects in the UK Central North Sea", said Arthur Millholland President of Oilexco. "This project along with our Brenda and Nicol (15/25a-13) developments located 35 kilometers to the east continues Oilexco's evolution from an exploration concern to a UK North Sea focused full cycle exploration and production company."

Later in the week, the Sedco 712 will move to Oilexco's 45% owned Muness project located in Block 21/4b. At Muness Oilexco is targeting Gas-Condensate bearing Lower Cretaceous sands.

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