Oilexco Update - 2007 Report

Oilexco Reports

2007 HIGHLIGHTS

- Revenue increased to $345.4 million (2006: $8.8 million)
- EBITDA rose to $265.6 million (2006: ($9.7) million)
- Net Income of $76.3 million (2006: ($14.0) million)
- Raised additional equity funds and debt capacity, providing Oilexco with the flexibility to fund operational activities for 2007 and beyond

Production
- Average daily production of oil and gas for the whole of 2007 of 11,748 BOE/day
- Average oil prices achieved of $79.19 per barrel (2006: $63.96)

Exploration, Appraisal and Development Drilling
- Oilexco continued its intensive exploration and appraisal drilling throughout 2007 and announced successes at Shelley, Kildare, Huntington, Ptarmigan and Bugle
- Acquisition of Balmoral FPV provides the Company with the ability to pursue additional production from stranded assets in the immediate area

Outlook for Oilexco

- Balanced program of exploration, appraisal and development drilling in 2008, with a total capital budget of $707 million
-- Oilexco will drill an additional 5 production wells in the area of the Balmoral FPV
--- The Company plans to invest in equipment and maintenance for the Balmoral FPV in preparation to receive additional production
-- Two production wells on Shelley will be drilled in the summer, and well completions and tie-ins to the Sevan Voyageur will occur in the fall, with first production targeted for Q4 2008
-- Appraisal drilling is planned for the Huntington field in 2008 in both the Paleocene Forties and Jurassic Fulmar zones.

Highlights

--- Oilexco and its partners are working on development solutions for Huntington, targeting first oil in late 2009 / early 2010

-- Targeting 2008 exit rate of 45,000 barrels of oil per day ( less than nine months away)

-- Exploration drilling for 2008 is planned for the Delta, Shelley North and Manhattan prospects

THE AMP position on Oilexco :

Despite the fall in the commodity price of oil I remain fully invested in Oilexco.
The reasons for our original purchase and additions to our position ,continue to be met with each Company update.

Jack Bass is the editor of the market letter The Apprentice Millionaire , which can be viewed at www.amprogram.com
His latest book is " Building Your AMP Portfolio ".