Oilexco to Begin Testing 3rd Brenda Appraisal Well

Oilexco will proceed with production testing of the second "sidetrack" of the well 15/25b-9, the third appraisal well at its 100% owned "Brenda" oil accumulation in Block 15/25b, central UK North Sea. Well completion and testing operations will commence Saturday with the running of production casing after wire-line pressure surveys are completed. These operations will be undertaken over ten days from commencement of completion operations.

In addition Oilexco announces that it has received an independent reserve evaluation of Oilexco's interests in Block 15/25b, UK North Sea, dated January 1, 2004. This report was prepared by Sproule International Limited ("Sproule") under the oil and gas reserve disclosure requirements of National Instrument 51-101. The report is based only on information from the first "Brenda" appraisal well 15/25b-6, and the original 1990 undeveloped discovery 15/25b-3. No data from the second or third "Brenda" appraisal wells was considered for the reserve evaluation in the report.

Proven plus Probable reserves of 15,017,000 barrels of oil were attributed to Oilexco's interest in 15/25b by Sproule at January 1, 2004. Of this reserve, 2,902,000 barrels oil was attributed as Proved reserves. Oilexco will receive an additional reserve report in the future updating the reserves at 15/25b after consideration of additional information provided by the second and third "Brenda" appraisal wells; 15/25b-8 and 15/25b-9.