Miscellaneous Oilexco Announces Exercise Of Over-Allotment Option

    FOR:  OILEXCO INCORPORATED
      LSE-AIM SYMBOL - OIL

TSX VENTURE SYMBOL:  OIL

January 14, 2004

Oilexco Announces Exercise Of Over-Allotment Option

CALGARY, ALBERTA--Oilexco Incorporated ("Oilexco" or the "Corporation") (LSE-AIM and TSX-V: OIL) announces that
Canaccord Capital (Europe) Limited and Canaccord Capital Corporation have exercised their Over-Allotment Option
granted to them as Agents under Oilexco's Prospectus offering (the "Offering") dated December 5, 2003, which
closed on December 23, 2003. The Agents will purchase an additional 4,133,400 Units, priced at  CDN$1.10 per
Unit. Each Unit consists of one Common Share of the Corporation (the "Common Shares") and one quarter of a
Common Share Purchase Warrant (the "Warrants"). One whole Warrant is exercisable into 1 Common Share at
CDN$1.65 for a period of 2 years from the date of issuance Canaccord Capital Corporation acted as Agent in
respect of the Prospectus offering in Canada, with Canaccord Capital (Europe) Limited acting as the Company's
Agent for the Offering in the United Kingdom and other European jurisdictions.

Oilexco intends to use the net proceeds of the Over-Allotment option to fund the Corporation's UK North Sea
drilling program and for general working capital.

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.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy these securities
in any jurisdiction.

Canaccord Capital (Europe) Limited is acting as agent to Oilexco in connection with the Offering in the United
Kingdom and other European jurisdictions, and will not be responsible to any other person or persons for
providing the protections afforded to customers of Canaccord Capital (Europe) Limited or for giving advice in
relation to the Offering or the content of this announcement. In acting for Oilexco, Canaccord Capital (Europe)
Limited has relied on information provided to it by both Oilexco and its directors.

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FOR FURTHER INFORMATION PLEASE CONTACT:

Oilexco Incorporated
Arthur S. Millholland
President
[phone]

OR

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

OR

Canaccord Capital (Europe) Limited
Neil Johnson, CFA
Managing Director, Corporate Finance
(0) 20-7518-7372

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

INDUSTRY:  OIL
SUBJECT:   NWS

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OILEXCO