OILEXCO INCORPORATED
TSX VENTURE, AIM SYMBOL: OIL
May 23, 2005
Oilexco Closes Pounds Sterling 10 million Bridge Financing with Royal Bank of Scotland
CALGARY, ALBERTA--(CCNMatthews - May 23, 2005) - Oilexco Incorporated ("Oilexco") (TSX VENTURE:OIL) (LSE:OIL) and its wholly owned subsidiary Oilexco North Sea Ltd. signed a Pounds Sterling 10 million bridge loan facility provided by the Royal Bank of Scotland. This facility is the first financing under the engagement letter of February 7, 2005, by which Oilexco appointed the Royal Bank of Scotland as exclusive arranger of debt financing for the development of the Brenda oil field in the North Sea. "This bridge facility allows us to order certain equipment which has a long lead time, as we work on the larger Project Facility which will take a few more months to negotiate and finalize," said Arthur Millholland, President of Oilexco. "We are extremely pleased with this bridge facility, which is the first stage of the financing programme foreseen in the engagement letter signed in February. The experience and knowledge of the Royal Bank of Scotland has been of great assistance to us and we look forward to continuing to work with them on the Project Facility. We are also pleased to welcome the Royal Bank of Scotland to our group of equity holders, as was contemplated in our original engagement letter."
As part of the fee payable in connection with the bridge facility, Oilexco has issued the Royal Bank of Scotland a share purchase warrant to acquire 400,000 common shares of Oilexco at a price of Pounds Sterling 1.20 (or C$3.00) at any time over the next 18 months. The share purchase warrants are subject to a 4 month hold period expiring on September 21, 2005 after which time the underlying shares can be traded.
Forward Looking Statements
This disclosure contains certain forward-looking estimates 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 the Company 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 estimates 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 well. 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.
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.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Oilexco Incorporated Arthur S. Millholland President (403) 262-5441
OR
Oilexco Incorporated Brian L. Ward Chief Financial Officer (403) 262-5441
OR
Oilexco Incorporated Gerry L. Roe Chief Operating Officer (403) 262-5441 Website: www.oilexco.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
INDUSTRY: OIL
SUBJECT: FNC
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OILEXCO INCORPORATED
