Lgx Oil & Gas fka OIL

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Oilexco raises $68.8-million for North Sea


Oilexco Inc (TSX-V:OIL)
Shares Issued 118,762,602
Last Close 6/24/2005 $2.56
Monday June 27 2005 - News Release

Mr. Arthur Millholland reports

OILEXCO ANNOUNCES CLOSING OF POUNDS STERLING 30 MILLION FINANCING

Oilexco Inc. has closed its previously announced share issue of 31 million common shares. The common shares were issued by way of a short form prospectus and were priced at 0.98 pound each, or approximately $2.22. Total gross proceeds of the issue were 30.4 million pounds, or approximately $68.8-million. The majority of the subscribers of the issue were European institutions. Oilexco will direct the proceeds of this issue toward its 2005 United Kingdom North Sea drilling program and for general corporate purposes.

The drilling program commenced in mid-March using the transocean semi-submersible Sedco 712. To date, Oilexco has drilled five penetrations at two different locations, the results of which have been previously announced. In addition a horizontal test well was successfully completed over the weekend by Oilexco at Brenda. The horizontal well 15/25b-8Z succeeded in confirming the location of the northern limit of the Brenda oil accumulation. Operations at 15/25b-8Z are expected to be completed later in the week.

Oilexco's 2005 U.K. North Sea drilling program will continue with the drilling of four to five new prospects during the balance of the year prior to the commencement of development drilling at the Brenda field.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The common shares will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

© 2005 Canjex Publishing Ltd.