25 Mar 2009 12:35
PRESS RELEASE
Oilexco North Sea Limited Update
Calgary, Canada, March 25, 2009 - Oilexco Incorporated ("Oilexco") (TSX-V: OIL; LSE: OIL) has been advised by the Administrators of Oilexco North Sea Limited (ONSL) that the Administrators have entered into a contract for Premier Oil to acquire all the shares of ONSL for $505 million subject to a Company arrangement with the creditors, failing which Premier will acquire the business and assets of ONSL for $415 million.
Oilexco understands the sale price is less than the amount owed by ONSL to its creditors and that the total consideration payable to Oilexco under the Share Acquisition Agreement is $1. As a result, Oilexco will not receive funds in excess of $1 from the sale which is expected to close in late May. Oilexco remains in CCAA as announced on February 5, 2009 and will continue to provide the market with timely updates.
About the Company
Oilexco is an oil and gas exploration and production company. Oilexco Inc. shares are listed for trading on the London Stock Exchange (LSE) and the Toronto Stock Exchange (TSX- V) under the symbol "OIL".
Forward Looking Statements
This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond Oilexco's control, including: the uncertainty of court proceedings under the Companies' Creditors Arrangement Act (Canada), the impact of general economic conditions in the areas in which Oilexco 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 statements 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 wells, and production facilities. 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. On January 7, 2009, Oilexco's wholly-owned subsidiary Oilexco North Sea Limited was subject to an order from the UK court appointing administrators. On February 5, 2009, the Company obtained a court order today for protection under the Companies' Creditors Arrangement Act (Canada).
FOR FURTHER INFORMATION PLEASE CONTACT:
Oilexco Incorporated
Arthur S. Millholland, President, (403) 262-5441
or
Brian L. Ward, Chief Financial Officer, (403) 262-5441
or
Rob Elgie, Manager Investor Relations, (403) 262-5441
Pelham PR
Andy Cornelius, Director, 44 (20) 7337 1514