Oilexco Begins Testing on Brenda Extension in UK North Sea

Oilexco will proceed with production testing of its latest 100% working interest well 15/25b-12Y. The 15/25b-12Y well is the twelfth appraisal well-bore to the "Brenda" oil find, originally made in 1990 by the well 15/25b-3 located in the UK Central North Sea. The 15/25b-12Y well intersected a Paleocene Forties channel sand exhibiting excellent reservoir characteristics having 64 feet of gross oil pay. It is located two kilometers southeast of the previously drill-stem tested well 15/25b-9Y, the most southerly well in the "Brenda" oil accumulation which was drilled and tested by Oilexco at a rate of 2,685 bbl/d in May 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-12Y well are planned to be completed over the next ten days.

To date Oilexco has drilled six appraisal wells at "Brenda", twelve (12) well-bores inclusive of side tracks, eleven (11) of which have intersected oil, four (4) of which have been production tested. The well 15/25b-6, the first well drilled by Oilexco tested 2,980 bbl/d of 40 degrees oil through a 40/64" choke under stable flowing conditions from the Forties Sandstone in late January. This well was followed by the successfully tested wells 15/25b-8 and 15/25b-9Y, and 15/25b-10 which flow tested 4,785 bbl/d, 2,685 bbl/d, and 3,351 bbl/d respectively.

The 15/25b-12Y well was the third well of the 15/25b-12 well cluster. The first two wells of the cluster, 15/25b-12 and 15/25b-12Z both intersected oil, with all three wells exhibiting the same oil/water contacts. The first well-bore of the cluster 15/25b-12 intersected 15 feet of gross oil pay from the reservoir margin from a location 1.5 kilometers south southwest of the 15/25b-9Y well. The second well of the cluster 15/25b-12Z, located halfway between the 15/25b-12 well and the 15/25b-9Y well, intersected 60 feet of gross oil pay. The common oil/water contacts in these wells indicate this area to be an extension of the "Brenda East" accumulation to the northwest.

The 15/25b-12Y well is the last well-bore of the second phase of Oilexco's "Brenda" appraisal drilling program on Licence P1042 and P1157 (100% working interest), Block's 15/25b and 15/25e in the Outer Moray Firth, targeting oil in the Paleocene Forties Sandstone.

The results of the 15/25b-12 well cluster in a seismically defined channel sand lacking structural closure, has further confirmed the "Brenda" oil find to be a stratigraphically trapped oil accumulation of significant proportion.