Oilexco Closes Over-Allotment Option on Prospectus Offering

Further to the company's press release of March 13, 2007, Canaccord Adams Limited has exercised the over-allotment option on the Company's previously announced underwritten prospectus offering. The Company has issued an additional 2,250,000 shares at (Pounds Sterling 3.44) for gross proceeds of approximately US$15 million. Gross proceeds of the Offering, including the over allotment option, are approximately US$115.8 million (Pounds Sterling 59.34 million) from a total of 17,250,000 shares issued at (Pounds Sterling 3.44). The additional shares issued pursuant to the exercise of the over allotment option are currently trading on the TSX and it is anticipated that they will be admitted to trading on the AIM Market of the London Stock Exchange on the April 13, 2007.

Canaccord Adams Limited led the underwriting syndicate for the offering, which included Maison Placements Canada Inc.

Oilexco intends to use the proceeds of the offering for further appraisal, evaluation and exploration program expenditures in the North Sea and for general working capital purposes.