Oilexco Clarifies Reserves Reports

Oilexco wishes to clarify certain press reports dated near the end of March which have speculated about the potential size and production rates of the "Brenda" oil find in the UK North Sea, including statements made by Company officials. Oilexco has drilled two appraisal wells at "Brenda" to an undeveloped discovery made in 1990 by a major oil company at well 15/25b-3 which have previously been reported on in press releases by the Company; however, to date there has been no independent engineering assessment of these wells and therefore the figures disclosed in the press reports cannot be independently verified. Certain press reports have contained speculation about the significant size of the "Brenda" oil find, and statements have been attributed to Company officials. However, until a number of additional appraisal and delineation wells are drilled and subsequent independent engineering has been undertaken, the overall reserves attributable to "Brenda" cannot be independently verified. The Company cautions that the press reports and the estimated figures contained therein are merely speculation and investors should not rely upon the press reports when assessing the "Brenda" oil find. Oilexco has been advised by their independent evaluation engineers that a report on the first "Brenda" well should be completed within the next two weeks, and Oilexco will issue a press release with that information when it is received. The Company has taken steps to remove these reports from their website.