OILEXCO INCORPORATED
TSX VENTURE, LSE SYMBOL: OIL
OCTOBER 12, 2004 - 08:52 ET
Oilexco Intersects Oil in Latest UK North Sea
Appraisal Well
CALGARY, ALBERTA--(CCNMatthews - Oct. 12, 2004) - Oilexco Incorporated
("Oilexco") (TSX-V: OIL; LSE-AIM: OIL) announces that oil has been
intersected in Oilexco's 100% owned well 15/25e-11. The oil/water
contact intersected by 15/25e-11 is at a higher elevation than that
intersected in the Oilexco 15/25b-10 well located 1.5 kilometers to the
southwest. This difference in elevation suggests the 15/25e-11 "well
cluster" is evaluating a new oil accumulation, separate from the "Brenda
West" oil accumulation currently defined by the Oilexco wells 15/25b-9
and 15/25b-10. Currently the 15/25e-11 well-bore is being plugged back
to a point where drilling will commence on the second well-bore of the
"well cluster", 15/25e-11Z. The bottom-hole location of 15/25e-11Z is
targeted to be 1.25 kilometers west of the 15/25e-11 bottom-hole
location. Following the drilling and logging of the 15/25e-11Z
well-bore, drilling operations will commence on the third well-bore of
the "well cluster" 15/25e-11Y. This well-bore, targeting a location 1.0
km northwest of the current 15/25e-11 will be tested after drilling and
logging operations are completed, as this well-bore is being drilled as
a standard sized hole (12.25 inches), verses the slim holes (8.5 inches)
of the first two well-bores of the "well cluster".
Oilexco Incorporated operates in the UK North Sea through its wholly
owned subsidiary Oilexco North Sea Limited. Oilexco's current focus in
the UK North Sea is on the following 100% owned Blocks: Block 15/25b, a
20th Round award, and Block 15/25e-East, an August 2004 Out of Round
award. Block's 15/25b and 15/25e are located in the Outer Moray Firth of
the UK Central North Sea, 120 kilometers northeast of Aberdeen.
Oilexco is listed on the Alternative Investment Market of the London
Stock Exchange plc ("LSE-AIM") and the TSX Venture Exchange ("TSX-V"),
trading under the symbol OIL.
