Oilexco Rolls Out $228.5MM in Revenues for Second Quarter

Oilexco Incorporated announced the Company's results for the three and six months ended June 30, 2008.

Arthur Millholland, President and Chief Executive Officer, commented, "Oilexco had a very good first half of 2008, achieving record financial results and continuing our strong track record with the drill bit. In particular, the Company had another major exploration success at Moth, our second in a year following the Huntington discovery in 2007. We are set for an active second half, with seven appraisal and production wells due to be drilled and the Shelley development due to come onstream; we will also be progressing activities on our key 2009 development projects."


Continued Strong Financial Performance

  • Second Quarter revenues of $228.5 million and total First Half revenues of $400.9 million (Q2 2007: $40.7 million; H1 2007: $42.7)
  • EBITDA increased to $171.7 million in the Second Quarter and $318.3 million, or $1.44 per share, in the First Half of 2008 (Q2 2007: $26.7 million; H1 2007: $24.3 million)
  • The Company made a Net Loss of $27.3 million in the Second Quarter, primarily due to non-cash expenses for unrealized losses recognized on derivative contracts (Q2 2007: $25.7 million)
  • Net Profit for the First Half of $22.6 million (H1 2007: $20.5 million)
  • After the end of the period, the Company announced it had signed an engagement letter with RBS to increase its total debt capacity to $1 billion


  • Sales for oil and gas in Q2 2008 averaged 20,606 Bbl / day, and average daily production was approximately 17,073 Bbl / day, reflecting production overlift
  • Received average price of $121.12 per barrel of oil in Q2 2008, with average netbacks of $105.68 per barrel

Operational / Drilling

  • Drilling activity higher in the Second Quarter higher than usual due to the addition of a third drilling unit, operating under short term contract until the end of August
  • Development drilling commenced on the 100% owned Shelley project
  • Fifth well in the Brenda field drilled, completed and tied in, with production commencing at approximately 7,800 Bbls / day
  • Appraisal drilling commenced at Caledonia field, following drilling of five well bores to define the limits of the Forties reservoir
  • Exploration drilling at Moth resulted in a significant discovery, with calculations suggesting the well could be capable of producing 44 Mmcf / day and 4,400 Bbls / day of condensate


  • Focus in H2 2008 is on the Company's development projects, ongoing drilling campaign and on operated facilities
  • Shelley development on track to deliver first oil in Q4 2008
  • Redevelopment of the Caledonia Field planned to commence in Q4 2008
  • Production optimization work in Balmoral core area continues, including drilling of a second production well on Nicol and commissioning of a new gas compressor on the Balmoral FPV
  • Appraisal drilling to be conducted at Shelley North, Huntington and Kildare
  • Continuing to target year end exit production rate of approximately 45,000 Bbl / day, subject to timing objectives being met on certain key projects