Oilexco Raises 7 Million Sterling Through Placement

Oilexco Incorporated (TSX VENTURE:OIL) (AIM:OIL) has closed its private placement of 5,385,000 Common Shares. The Common Shares were priced in pounds Sterling at Pounds Sterling 1.30 each, approximately $3.00 Canadian; with aggregate gross proceeds of the private placement being Pounds Sterling 7.0 million, or approximately $16,100,000 Canadian. All Subscribers of the private placement were European Institutions.

Oilexco intends to use the proceeds of this private placement to augment its cash balances, which will be directed at its 2005 UK North Sea Drilling Program. The Drilling Program is expected to commence in mid March utilizing the Transocean Semi-submersible Sedco 712. Oilexco has contracted the Sedco 712 for a one year period commencing upon mobilization of the drilling unit, which is expected to occur in mid March after completion of maintenance and refitting which was initiated in mid November of last year.