Oilexco Expands Huntington Forties Pool in UK North Sea

Oilexco Inc.

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."