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[Echelon]

Oilexco Announces First Oil From Brenda/Nicol Fields

June 11, 2007

Oilexco Announces First Oil From Brenda/Nicol Fields

CALGARY, ALBERTA--(CCNMatthews - June 11, 2007) - Oilexco Incorporated ('Oilexco') (TSX:OIL) (AIM:OIL) and its
wholly owned subsidiary, Oilexco North Sea Limited, announce that production has begun at the Brenda/Nicol
Fields in the UK Central North Sea.

The Company estimates production from the three wells in Brenda and one well in Nicol will average
approximately 30,000 barrels of oil per day during the first full year of production.

'This is a great day for our Company', said Oilexco President and CEO Arthur Millholland. 'This is our first
development in the UK North Sea. I am extremely proud of our people. We have managed this project ourselves
from conception to first oil. We have a lot to be proud about,' added Mr Millholland.

The Company has a 100% working interest in both the Brenda and Nicol Fields located in Block 15/25b and 15/25a
respectively. At Nicol, the Company has a 70% revenue interest which will revert to 100% after 1.25 million
barrels of oil has been recovered from 30% of the Nicol production volumes. Brenda and Nicol were developed
concurrently. Oil from the development is processed at the Balmoral Floating Production Vessel located 8km east
northeast of Brenda in Block 16/21a. Oilexco owns a 7.9% non-operated interest in the Balmoral facility.

About the Company

Oilexco Incorporated is a Canadian Company engaged in oil and gas exploration and production in the United
Kingdom. The Company's efforts are solely focused on the UK Central North Sea, specifically in the Outer Moray
Firth and Central Graben areas. Oilexco's operations in the United Kingdom are conducted through its wholly
owned subsidiary, Oilexco North Sea, a company registered under the laws of England and Wales. Oilexco trades
on the Toronto Stock Exchange (TSX) in Canada and the AIM portion of the London Stock Exchange under the symbol
'OIL'.

Forward Looking Statements

This disclosure contains certain forward-looking statements that involve substantial known and unknown risks
and uncertainties, certain of which are beyond Oilexco's control, including: the impact of general economic
conditions in the areas in which Oilexco operates, civil unrest, industry conditions, changes in laws and
regulations including the adoption of new environmental laws and regulations and changes in how they are
interpreted and enforced, increased competition, the lack of availability of qualified personnel or management,
fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining
required approvals of regulatory authorities. In addition there are risks and uncertainties associated with oil
and gas operations, therefore Oilexco's actual results, performance or achievement could differ materially from
those expressed in, or implied by, these forward-looking statements will transpire or occur, or if any of them
do so, what benefits, including the amounts of proceeds, which Oilexco will derive therefrom. All statements
included in this press release that address activities, events or developments that Oilexco expects, believes
or anticipates will or may occur in the future are forward-looking statements. These statements include future
production rates, completion and production timetables and costs to complete wells, and production facilities.
These statements are based on assumptions made by Oilexco based on its experience perception of historical
trends, current conditions, expected future developments and other factors it believes are appropriate in the
circumstances.

In accordance with the guidelines of the AIM market of the London Stock Exchange, Arthur Millholland P.Geol,
President and CEO of Oilexco Incorporated, is the qualified person that has reviewed the technical information
contained in this press release.


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FOR FURTHER INFORMATION PLEASE CONTACT:

Oilexco Incorporated
Arthur S. Millholland
President
[phone]

OR

Oilexco Incorporated
Brian L. Ward
Chief Financial Officer
[phone]

OR

Oilexco Incorporated
Gerry L. Roe
Chief Operating Officer
[phone]

OR

Oilexco Incorporated
Rob Elgie
Manager Investor Relations
[phone]
Website: www.oilexco.com

OR

Pelham Public Relations
James Henderson
Managing Director
44 (20) 7743 6673

OR

Pelham Public Relations
Alisdair Haythornthwaite
Associate Director
44 (20) 7743 6676

OR

Canaccord Adams Limited
Clayton Bush
Vice-President
44 (20) 7050 6500

OR

Merrill Lynch International
Andrew Osborne
Managing Director
44 (20) 7996 1000

INDUSTRY: Energy and Utilities-Oil and Gas
SUBJECT: OEX

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OILEXCO INCORPORATED

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