Velo Energy names Millholland CEO, president

2009-08-07 17:00 ET - News Release

Mr. Arthur Millholland reports

VELO ENERGY INC. ANNOUNCES MANAGEMENT AND STRATEGIC CHANGES

Velo Energy Inc. has embarked on significant changes to the company's management team, its strategy and region of focus. Effective Aug. 7, 2009, Arthur Millholland has been appointed president and chief executive officer. Mr. Millholland previously served as the president and chief executive officer of Oilexco Inc. A number of former Oilexco senior management will also join the company, and will initially concentrate their efforts on oil and gas exploration and production in the United Kingdom North Sea. The company's strategy will include focusing on lower risk undeveloped discoveries that can be brought into production in a relatively short time frame.

Mr. Millholland said: "The core team of people who played such a significant role in successfully finding and developing oil in the U.K. North Sea in recent years are very excited about the opportunity to work together once again. Our philosophy of active, low risk development and shortened time frames to production, combined with financial risk management reflecting today's economic environment, will serve the company well."

The company has granted six million incentive stock options to purchase common shares at a price of 20 cents per share to the new senior management team. The stock options are for a five-year term and are subject to regulatory approval.

Donald Gee has resigned as president and chief executive officer. The board of directors wishes to thank Mr. Gee for his dedication and service while at the company.