Oilexco Closes US$245 Million Project Financing

Oilexco Incorporated and its wholly owned subsidiary Oilexco North Sea Limited have signed debt facilities totaling US$245,000,000 over five years (the "Project Facilities") to fund the development of Oilexco's 100% owned Brenda field and 70% interest in the nearby Nicol field. The Project Facilities, fully underwritten by The Royal Bank of Scotland plc are comprised of a US$225 million revolving facility available to meet all of Oilexco's currently budgeted costs of developing both fields and for general corporate purposes and a US$20 million contingent facility for unbudgeted field development cost overruns.

"This debt financing takes Oilexco a few steps closer to our goal of becoming a significant UK North Sea oil producer in 2007. The Project Facilities, in addition to funding the Brenda-Nicol development, will provide Oilexco with flexibility in funding its objectives over the next few years. The continued support of The Royal Bank of Scotland plc as exclusive arranger of debt financing for Oilexco is greatly appreciated. Their expertise in the North Sea allows us to fully execute our business plan," said Arthur Millholland, President of Oilexco.


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