Drilling Report

    FOR:  OILEXCO INCORPORATED

TSX VENTURE, LSE SYMBOL:  OIL

January 26, 2004

Oilexco Announces 'Brenda' Oil Find

LONDON, UNITED KINGDOM--Oilexco Incorporated ("Oilexco") (TSX-V: OIL; LSE-AIM: OIL) has made a substantial oil
find at the initial well of its 100% interest UK North Sea drilling program.  The 15/25b-6 well ("Brenda")
tested 40 degrees API oil at an average rate of 2,980 bbl/d, over an 18 hour test under stable flowing
conditions.  The oil flow was through a 40/64" choke at 458 psi flowing wellhead pressure, from 56 feet of
perforations.  Associated natural gas flowed at an average rate of 600 Mcf/d throughout the test.  No water or
sand was produced during the test period.  Currently the well is being suspended for future re-entry as a
production well.  Upon completion of the suspension operations later this week, the Transocean Offshore semi-
submersible J.W. McLean will move approximately 4 kilometers northwest to commence drilling operations on the
"Sheryl" prospect, the second well of Oilexco's UK North Sea drilling program.

Oilexco also announces that it has exercised its option with Transocean Offshore for a third well to be drilled
by the J.W. McLean.  This well will be the next appraisal well to the "Brenda" oil accumulation.  The well
location will be 1.1 kilometers southwest of the 15/25b-6 well.

Arthur Millholland, President, comments that "this is a strong test result". The "Brenda" well has higher flow
rates than the original abandoned 15/25b-3 discovery.  Additionally, while being flow tested through a smaller
choke, the Oilexco 15/25b-6 well flowed with double the flowing pressure of the original 15/25b-3 well.  Mr.
Millholland also comments that "wells similar to 15/25b-6 have had initial production rates in excess of 10,000
bbl/d when produced with the assistance of artificial lift".  Ultimate potential production rates for "Brenda"
will be best forecasted after full appraisal has been completed.

Oilexco is listed on the Alternative Investment Market of the London Stock Exchange plc ("LSE-AIM") and the TSX
Venture Exchange ("TSX-V"), trading under the symbol OIL.

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FOR FURTHER INFORMATION PLEASE CONTACT:

Oilexco Incorporated
Arthur S. Millholland
President
[phone]

OR

Oilexco Incorporated in Calgary Canada
Brian L. Ward
Chief Financial Officer
[phone]


OR

In the United Kingdom
Charlie Sharp
Canaccord Capital (Europe) Ltd
(0)20 75187366

OR

Canaccord Capital (Europe) Ltd.
Pav Sanghera
(0)20 75187356

OR

Bell Pottinger Financial
Ann-Marie Wilkinson
(0)20 7861 3932

OR

Bell Pottinger Financial
Paddy Blewer
(0)20 7861 3864

The TSX Venture Exchange has not reviewed nor accepts responsibility for the adequacy or accuracy of this News
Release

INDUSTRY:  OIL
SUBJECT:   OEX

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OILEXCO