Oilexco Announces First Quarter Results

Oilexco Incorporated is pleased to announce the Company's results for the three months ended March 31, 2008.

Arthur Millholland, President and Chief Executive Officer, commented: "The first quarter of 2008 proved to be another successful period for Oilexco on a number of fronts. We began integrating and investing in the Balmoral FPV following its acquisition at the end of 2007, and we will accelerate development drilling in the area as we build it into a production hub for the Company. "Oilexco also enjoyed further success with the drill bit during the quarter at Huntington and Bugle, as we continued our aggressive program of development, appraisal and exploration drilling."

Record Financial Results:
  • Revenue reached $172.4 million (Q1 2007: $2.0 million).
  • EBITDA increased to $146.6 million (Q1 2007: ($2.4) million).
  • Net Income of $49.9 million (Q1 2007: ($5.3) million).

  • Production:
  • Average daily production of oil and gas of 20,714 BOE / day.
  • Continued to make production enhancements at the Brenda / Nicol fields.
  • Benefited from the increase in oil prices with an average price of $96.47 per barrel.
  • Operational costs decreased to $8.43 per barrel; netback of $88.04 per barrel.

  • Drilling:
  • Extensive drilling program continued during the quarter, with successful appraisal drilling at Huntington and Bugle.
  • Commenced drilling of the first of several additional development wells in the area of the Balmoral FPV.
  • After period end, Oilexco announced a Share Purchase Agreement for Svenska Petroleum Exploration UK Limited that will give additional production, strategic interests in two production facilities and a new regional foothold.

  • Outlook:
  • Exploration drilling to continue on the Moth prospect.
  • Increased production in H2 2008 from additional wells at Brenda, Nicol and Balmoral fields.
  • Further appraisal drilling planned on Bugle block to determine the aerial extent of the field and find the oil/water contact.
  • Exploration drilling will occur on the Delta Block (16/21b), a farm-in giving the Company a 55% working interest.
  • Drilling will commence on two production wells on Shelley in the summer with first production targeted for Q4 2008.
  • Contract extension for the Ocean Guardian semi-submersible drilling vessel until July 2011; the short term assignment of the Sedco 704 semi-submersible drilling vessel from May to August 2008.