Oilexco Expands Huntington Forties Pool in UK North Sea

Oilexco's wholly owned subsidiary, Oilexco North Sea Limited, has successfully identified an extension to the Huntington Forties Pool on Block 22/14a. This follows successful appraisal drilling on the Huntington Forties Oil accumulation on Block 22/14b in 2006 and 2007.

Following the completion of this drilling program, Oilexco North Sea Limited will earn a 25.036% interest in the southern portion of Block 22/14a (Shallow). Oilexco has a 40% interest in the adjacent Block 22/14b.

Drilling Update

An extension to the Huntington Forties Pool was encountered by drilling the 22/14b-9 well and the 22/14b-9z sidetrack well. These wells were drilled to targets on Block 22/14a from a surface location on the adjacent 22/14b Block.

The 22/14b-9 well encountered 58 feet (TVT – true vertical thickness) of oil-bearing Forties sandstone. Wireline pressures confirmed that these oil-bearing Forties sandstones were connected with the Huntington Forties Pool, suggesting that the oil pool extends from Block 22/14b onto a portion of the adjacent Block 22/14a. After consultation with partners, Oilexco will incorporate all the data gathered into a Field Development Plan to be submitted to the UK authorities.

Furthermore, the 22/14b-9z sidetrack well, which encountered 26.3 feet (TVT) of oil-bearing Forties sandstone on the flank of a seismic anomaly. The 22/14b-9z well was perforated from 10,644 to 10,664 feet M.D. and the drill-stem test yielded a maximum flow rate of 2,707 barrels of oil per day through a 56/64"choke, with no water or sand produced during the test. The API gravity of the oil was 44 degrees and the average GOR during test was measured to be 368 scf/bbl.

Arthur Millholland, President and Chief Executive Officer, commented, "he size and potential of the Huntington discovery continues to grow and there is no doubt that this will be a prolific development for Oilexco. We look forward to working closely with our partners to get this on-stream as quickly as possible, and are delighted that our pipeline of exploration, development and appraisal projects continues to be expanded to underpin our growing production profile going forward."