Oilexco Tests Sixth Appraisal Well at Brenda Field

Oilexco will proceed with production testing of the well 15/25b-10, the sixth appraisal well inclusive of sidetracks at its Brenda oil find located in the United Kingdom central North Sea. The 15/25b-10 well intersected a Paleocene Forties channel sand exhibiting excellent reservoir characteristics having 50 feet of gross oil pay, one kilometer northwest of the untested oil-bearing Paleocene "Forties" sand in the well 15/25b-9 and two kilometers west of the well 15/25b-8, which was drilled and tested by Oilexco at a rate of 4,785 barrels per day in March of this year. An interval in the upper portion of the reservoir will be perforated and flow tested for a sufficient period to evaluate the production characteristics of the reservoir. Completion and testing operations on the 15/25b-10 well are planned to be completed over the next 10 days.

The 15/25b-10 well is the sixth appraisal well to the Brenda oil find, originally made in 1990 by the well 15/25b-3. The well 15/25b-6, the first well drilled by Oilexco, tested 2,980 barrels per day of 40-degree oil through a 40/64-inch choke under stable flowing conditions from the Forties sandstone in late January. This well was followed by the tested wells 15/25b-8 and 15/25b-9y which flow tested 4,785 barrels per day and 2,685 barrels per day. The intersection of a significant oil column in a seismically defined channel sand lacking structural closure by the 15/25b-10 well has further confirmed the Brenda oil find to be a stratigraphic trap of significant proportion. Oilexco has identified additional appraisal locations from its seismic interpretation to further define the limits and reserves of the "Brenda" oil accumulation.

Oilexco is in the second phase of its Brenda appraisal drilling program on license P1042 (100-per-cent working interest), block 15/25b in the Outer Moray Firth, targeting oil in the Paleocene Forties sandstone.