Oilexco Begins Testing First Well of 2005 UK Program

Oilexco has commenced completion and testing operations on 15/25a-13Y, the third well bore of the 15/25a-13 "well cluster", the first well of the Company's 2005 UK North Sea drilling program. Drilling operations at 15/25a-13 commenced on March 31 utilizing the Transocean mid-water semisubmersible Sedco 712. The 15/25a-13 well-bore was the first of three penetrations or a "well cluster" to be drilled from a central location. It was immediately followed by wells 15/25a-13Z, and 15/25a-13Y. The 15/25a-13 "well cluster" is being drilled as an earning well on a farmin by Oilexco on Licence P.233, Block 15/25a. Under the terms of the farmin agreement, Oilexco is paying 100% of the costs of the 15/25a-13 "well cluster", to earn a 70% interest in Block15/25a.

The 15/25a-13 "well cluster" is appraising a Paleocene sand oil accumulation intersected by the well 15/25a-2, which was drilled in 1983. The 15/25a-2 well intersected 15 feet of net oil pay on the flank of a four way structural closure. This Paleocene sand reservoir is on the same depositional trend as Oilexco's Brenda Paleocene reservoired oil accumulation located 10 kilometers to the southeast in Block 15/25b.

The 15/25a-13Y well is located approximately 20 feet below the crestal area of the four way closure. The well intersected 57 feet of net oil pay over 67 feet of gross oil column. 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 15/25a-13Y well are planned to be completed over the next ten days.

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