Oilexco: Project Completion Milestone Achieved at Brenda/Nicol Field

Oilexco has received confirmation from the Royal Bank of Scotland that Oilexco has achieved "Project Completion" status for its Brenda/Nicol Field. The key criterion for receiving this designation from RBS was surpassing total combined production of 1.56 million barrels from the Brenda/Nicol Fields. Oilexco began production from these fields in June.

"Reaching this milestone so quickly proves that the Brenda/Nicol Fields are capable of the production rates that we had estimated, which is approximately 30,000 barrels per day based on full days production", said Oilexco President and CEO Arthur Millholland. "We would have achieved this status even sooner but the Balmoral Floating Production Vessel, which receives and processes the oil from the Brenda/Nicol Fields, was shut down for a number of days in July as part of its annual pre-planned maintenance program."

The Company has a 100% equity interest in the Brenda Field (Block 15/25b) which contains 4 production wells, and a 70% equity interest in the Nicol Field (Block 15/25a) which contains 1 production well. Once Oilexco's partners in the Nicol Field have lifted a joint total of 1.25 million barrels from their shared 30% equity interest, Oilexco will assume a 100% equity interest in the Nicol Field.

Oilexco is currently conducting appraisal drilling on its 100% owned Shelley oil discovery (Blocks 22/2b and 22/3a) with the Ocean Guardian semi-submersible vessel. The Company's second semi-submersible vessel is conducting appraisal drilling on the Huntington oil discovery (Block 22/14) announced in May 2007, in which the Company has a 40% equity interest.