Oilexco Sees Increase in Reserves and Values

Oilexco announces its reserves for the year ended December 31, 2006. The Company's reserves were independently evaluated by Sproule International Limited in accordance with standards set out in the Canadian Oil and Gas Evaluation Handbook ('COGE Handbook'), as specified by National Instrument 51-101.

Full details of Oilexco's Reserves at December 31, 2006, presented in the format specified by National Instrument 51-101, will be filed on SEDAR in the Company's Annual Information Form on or before March 31, 2006.

Proved plus Probable Reserves increased year over year from December 31, 2005 to December 31, 2006 by 16.3%, while Proved plus Probable plus Possible Reserves increased by 9.3%. These increases reflect adjustments to the reserves at the Brenda and Nicol Fields resulting from the drilling of the horizontal production wells as well as the appraisal of the Sheryl oil accumulation. Reserve additions for the Black Horse, Bugle and Shelley projects are limited due to their respective states of appraisal. Additional appraisal drilling is scheduled for all three areas this year, and if successful the results should satisfy the standards as set out in the COGE Handbook for full inclusion of these projects into Oilexco's reserve base.

For the year ended December 31, 2006 Oilexco's reserves as evaluated by Sproule, utilizing Sproule's forecast prices at December 31, 2006, are summarized in the table below as follows:



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Category                Net Oil   Net Present Values    Net Present Values
                       Reserves    (M$US) Before Tax     (M$US) Before Tax
                           Mboe   Discounted 0%/Year   Discounted 10%/Year
---------------------------------------------------------------------------

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Proved                 26,614.1            1,074,661               890,054
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Probable               16,379.9              529,814               337,636
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Proved plus Probable   42,994.0            1,604,475             1,227,690
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Possible               13,719.0              534,702               314,318
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Proved plus Probable
 plus Possible         56,713.0            2,139,177             1,542,008
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