Oilexco Begins Oil Production from Brenda/Nicol Fields

Oilexco's subsidiary, Oilexco North Sea Limited, says that production has begun at the Brenda/Nicol Fields in the UK Central North Sea.

The Company estimates production from the three wells in Brenda and one well in Nicol will average approximately 30,000 barrels of oil per day during the first full year of production.

'This is a great day for our Company', said Oilexco President and CEO Arthur Millholland. 'This is our first development in the UK North Sea. I am extremely proud of our people. We have managed this project ourselves from conception to first oil. We have a lot to be proud about,' added Mr. Millholland.

The Company has a 100% working interest in both the Brenda and Nicol Fields located in Block 15/25b and 15/25a respectively. At Nicol, the Company has a 70% revenue interest which will revert to 100% after 1.25 million barrels of oil has been recovered from 30% of the Nicol production volumes. Brenda and Nicol were developed concurrently. Oil from the development is processed at the Balmoral Floating Production Vessel located 8km east northeast of Brenda in Block 16/21a. Oilexco owns a 7.9% non-operated interest in the Balmoral facility.

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