Oilexco Abandons Sheryl Sidetrack Well in North Sea

Oilexco Incorporated reports that the side-track 15/25b-7Z of the well 15/25b-7 ("Sheryl"), the second well of its UK North Sea drilling program, has been abandoned. The well encountered a very porous forties sand with a thin oil column at the top of the sand. The results of the sidetrack suggest that the "Sheryl" structure is separate from the "Brenda" oil accumulation which is at a structurally lower position. The sidetrack well, 15/25b7Z, was drilled by Transocean Inc.'s semsiub, JW McLean.

Oilexco's UK North Sea drilling program is a minimum three (3) well program on License P1042 (100% working interest), Block 15/25b in the Outer Moray Firth, targeting oil in the Paleocene Forties Sandstone. The surface location of 15/25b-7 is approximately 4 kilometers northwest of the 15/25b-6 "Brenda" oil find announced by Oilexco on January 26, which tested 2,980 bbl/d of 40 degrees oil from the Forties Sandstone from 56 feet of perforations.

The third well of the program will commence drilling operations later this week after abandonment operations are completed at "Sheryl". This well will be Oilexco's first appraisal well at "Brenda". This purpose of this well is to define the limits, reserves and production potential of the "Brenda" oil find.