Lgx Oil & Gas fka OIL

[Echelon]

Oilexco drill stem tests Paleocene Forties sand


2007-06-20 07:10 ET - News Release

Mr. Arthur Millholland reports

OILEXCO TESTS OIL AT HUNTINGTON FROM FORTIES SAND

Oilexco Inc.'s wholly owned subsidiary Oilexco North Sea Ltd. and its partners have successfully drill stem tested the Paleocene Forties sand in its recently announced multiple zone light oil discovery on its 40-per-cent-owned Huntington prospect in block 22/14b in the United Kingdom Central North Sea. Oilexco's partners in the discovery are Altinex Oil (U.K.) Ltd. (20 per cent), E.ON Ruhrgas U.K. Exploration and Production Ltd. (25 per cent), and Carrizo Oil and Gas Inc. (15 per cent).

The discovery well 22/14b-5 was drilled to a total depth of 13,325 feet. The Paleocene Forties sand at 8,960 feet was drill stem tested through perforations from 8,975 feet to 9,025 feet in 98 feet of oil-bearing Forties sand. The test flowed 41 degrees API oil at up to a maximum rate of 5577 barrels per day and associated gas at an estimated rate of 3.4 million standard cubic feet per day through a 72/64-inch choke with a flowing tubing pressure of 395 pounds per square inch. There was no water or sand produced during the test. Flow rates were severely restricted by the test equipment used for the test.

Further appraisal of the Huntington oil accumulations is planned for the fourth quarter using one of Oilexco's two long-term contracted semi-submersible drilling rigs. The structures tested by the 22/14b-5 well are significant. This appraisal will confirm the size of the structures which will aid in the definition of potential development solutions going forward.

"This test confirms the significance of the Paleocene Forties oil accumulation at Huntington," said Oilexco president and chief executive officer, Arthur Millholland. "This result combined with the results from the deeper Fulmar oil accumulation suggest that Huntington could eventually be a significant new North Sea oil development."

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