Oilexco Incorporated and Oilexco North Sea Limited Close £40M Credit Facilities and Prospectus Offering

In February, 2007, Oilexco Incorporated of Calgary and its wholly owned subsidiary Oilexco North Sea Limited of Aberdeen, Scotland, entered into two transactions to access capital of approximately $210 million (Canadian). On February 17, 2007, Oilexco North Sea Limited, a wholly owned subsidiary of Oilexco Incorporated closed a £40 million pre-development financing facility with The Royal Bank of Scotland plc on a fully underwritten basis to fund pre-development expenditures related to Oilexco's 100 per cent owned Shelley field and other assets located in the UK North Sea. The transaction is unique as it allows Oilexco to fund pre-development expenses whereas a typical facility only provides funding for development expenditures related to a specific field.

Oilexco and Oilexco North Sea were represented by McCarthy Tétrault LLP by Mark Frewin (London, finance) and Reena Modha (London, business law, finance) and by Bill Smith, Q.C. (Calgary, business law, finance), Michael Bennett (Calgary, business law) and Dan Sears (Calgary, finance).

Herbert Smith LLP, with a team of Adrian Cheng, Olivia Caddy, Mette Rolle represented The Royal Bank of Scotland plc.

On March 13, 2007, Oilexco Incorporated completed an underwritten prospectus offering pursuant to which it raised US $100 million (approximately £51 million) in Canada, the United Kingdom and the United States. Canaccord Adams Limited led the underwriting syndicate which included Maison Placements Canada Inc.

Oilexco and Oilexco North Sea were represented by McCarthy Tétrault LLP by Bill Smith, Q.C. and Michael Bennett (Calgary, business law) and Reena Modha (London, business law).

Burnet, Duckworth & Palmer LLP, with a team of Gary Bugeaud and Grant MacKenzie represented the underwriters.

Lawyer(s)

Daniel E. Sears Grant A. MacKenzie William H. Smith Michael J. Bennett

Firm(s)

McCarthy Tétrault LLP Herbert Smith Freehills LLP Burnet, Duckworth & Palmer LLP