Oilexco Tests 4,194 b/d from 1st Well in 2005 UK Program

Oilexco has flow tested 4,194 bbl/d of 39 degree oil during production testing operations from the well 15/25a-13Y, the third well bore of the 15/25a-13 "well cluster" which is the first well of the Company's 2005 UK North Sea drilling program. The oil flow was through a 44/64" choke at 501 psi flowing wellhead pressure from 44 feet of perforations. The flow rate was restricted by the testing equipment available. The 15/25a-13 "well cluster" was drilled as an earning well on a farmin by Oilexco on License 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" has appraised a Paleocene sand oil accumulation defined by the well 15/25a-2, which was drilled in 1988. 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. Drilling operations at the first well of the cluster 15/25a-13 commenced on March 31 utilizing the Transocean mid-water semisubmersible Sedco 712. The 15/25a-13 well-bore located 1.5 kilometers west of the 15/25a-13Y location defined the up-dip termination of the structural closure. The second well-bore 15/25a-13Z located 1.75 kilometers east of the 15/25a-13Y location confirmed the oil-water contact at the eastern margin of the structural closure. The 15/25a-13Y well, the third well-bore of the cluster, 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.

Operations at 15/25b-13Y should be completed by the end of the week. At this time the Sedco 712 will move to a location in Block 15/24b, located northwest of Block 15/25a, to drill a well operated by Oilexco on a farmin basis. This well will evaluate a Paleocene sand reservoir separate to the MacCulloch Field located to the northwest. Oil indicator seismic attributes at this location are similar to those at MacCulloch, and Oilexco's "Brenda" and 15/25a-13Y Paleocene reservoired oil accumulations, all of which are on the same depositional trend.

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