Oilexco to file for administration

Oilexco North Sea intends to file petitions for administration in the High Court in the UK.

Offshore staff

CALGARY, Canada -- Oilexco North Sea intends to file petitions for administration in the High Court in the UK.

The company was advised by The Royal Bank of Scotland on behalf of the syndicate of lenders that it is not prepared to advance any further funding to ONSL. Oilexco does not have any other source of funding at this time and has therefore concluded that an administration must be pursued. Oilexco has been advised that funding for an administration is in the process of being arranged by its senior secured lenders, subject to settlement of terms with the prospective administrators and counsel. Accordingly, all parties expect that safe and orderly operations will continue throughout this period.

01/05/2009

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