Announces Reserves and Values

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Announces Reserves and Values

posted on Feb 13, 2009 04:45AM

February 13, 2009

Oilexco Announces Reserves and Values

CALGARY, ALBERTA--(Marketwire - Feb. 13, 2009) - Oilexco Incorporated ("Oilexco") (TSX:OIL) (LSE:OIL) is pleased to announce its reserves for the year ended December 31, 2008. The Company's reserves were independently evaluated by Sproule International Limited ("Sproule") in accordance with standards set out in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook"), as specified by National Instrument 51-101.

Highlights

- 6.0% decrease in 1P reserves to 39,164 Mboe (2007: 41,667 Mboe)

- 2.6% increase in 2P reserves to 66,226 Mboe (2007: 64,534 Mboe)

- 9.7% increase in 3P reserves to 102,761 Mboe (2007: 93,651 Mboe)

For the year ended December 31, 2008, Oilexco's reserves as evaluated by Sproule, using Sproule's forecast prices at December 31, 2008, are summarized in the table below as follows:

----------------------------------------------------------------------------
                             Net Present Values          Net Present Values
                Net Oil           (M$US) Before                (M$US) After
               Reserves          Tax Discounted              Tax Discounted
Category          (Mboe)               10%/Year                    10%/Year 
----------------------------------------------------------------------------
Proved (1P)      39,164              $1,014,631                  $  952,650
----------------------------------------------------------------------------
Proved plus 
 Probable (2P)   66,226              $1,927,767                  $1,427,158
----------------------------------------------------------------------------
Proved plus 
 Probable plus 
 Possible (3P)  102,761              $3,266,622                  $2,104,589
----------------------------------------------------------------------------

Increases in 2P and 3P reserves were a result of successful exploration and appraisal activities undertaken by the Company in 2008. Factors offsetting increases to reserves and Net Present Values for the year ending December 31, 2008 compared to the previous year included significant production from the Company's Brenda/Nicol fields and a large decrease in the forecasted price of oil used by the evaluators.

Full details of Oilexco's Reserves as at December 31, 2008, and presented in the format specified by National Instrument 51-101, will be filed on SEDAR in the Company's Annual Information Form on, or before, March 31, 2009.

About the Company

Oilexco shares are listed for trading on the London Stock Exchange (LSE) and the Toronto Stock Exchange (TSX) under the symbol "OIL".

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