OilVoice - Oilexco Announces Reserves and Values

Oilexco Announces Reserves and Values

Friday, February 13, 2009

Oilexco Incorporated announces 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 below:

Proved (1P)
Net Oil Reserves (Mboe): 39,164
Net Present Values (M$US) Before Tax Discounted 10%/Year: $1,014,631
Net Present Values (M$US) After Tax Discounted 10%/Year: $952,650

Proved plus Probable (2P)
Net Oil Reserves (Mboe): 66,226
Net Present Values (M$US) Before Tax Discounted 10%/Year: $1,927,767
Net Present Values (M$US) After Tax Discounted 10%/Year: $1,427,158

Proved plus Probable plus Possible (3P)
Net Oil Reserves (Mboe): 102,761
Net Present Values (M$US) Before Tax Discounted 10%/Year: $3,266,622
Net Present Values (M$US) After Tax Discounted 10%/Year: $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.

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