July 21st

Oilexco\'s Moth Discovery Achieves Significant Gas-Condensate Flow Rates

Oilexco Incorporated (\"Oilexco\") (TSX:OIL) (LSE:OIL) through its wholly owned subsidiary Oilexco North Sea Limited, announces it has successfully flow tested gas-condensate at significant rates from its Moth discovery. This follows the Company\'s announcement on 26 June, 2008, confirming a significant dual zone oil and gas-condensate discovery at Moth, located in Block 23/21 in the UK Central North Sea.

The Oilexco 23/21-6z Moth discovery well was drilled to a total depth of 14,616 feet. Gas condensate bearing reservoir sands in the Upper Jurassic Fulmar at depth of 12,975 feet were drill stem tested through perforations from 12,982 feet to 13,026 feet in 115 feet of gas condensate bearing reservoir sands. The test flowed gas at an average rate of 20.3 Mmcf/d with 2,110 Bbls/d of condensate (5,493 barrels of oil equivalent per day (\"boepd\")) through a 36/64 inch choke with a flowing tubing pressure of 4,478 psi during the main flow period. The maximum flow rate achieved during the test was 24.4 Mmcf/d and 2,460 Bbls/d of condensate (6,526 boepd). Flow rates were severely restricted by the test equipment utilized for the test and the working temperatures and pressures encountered. No depletion was measured, nor was there water or sand produced during the test. Calculations of surface absolute open flow (\"AOF\") suggest that the Moth well could be capable of 44 Mmcf/d and 4,400 Bbls/d of condensate (11,800 boepd) with a properly sized production string.

\"We are very pleased with the results of the Moth well, which has the potential to become a significant producing asset for the Company\" said Arthur Millholland, President and CEO of Oilexco. \"Oilexco will now evaluate the timing of additional appraisal of the Moth structure and development options in the near future with our co-venturers. Our objective at Moth is the same as our other exploration successes in the North Sea; an effective and efficient appraisal programme followed by early development to rapidly commercialise our expansive portfolio.\"

About the Company

Oilexco is an oil and gas exploration and production company active in the United Kingdom. The Company has been the most active driller in the UK North Sea for the past four years. Oilexco\'s producing properties, exploration and development activities are located in the UK Central North Sea, specifically in the Outer Moray Firth and Central Graben areas. Oilexco operates in the United Kingdom through its wholly owned subsidiary, Oilexco North Sea, a company registered under the laws of England and Wales. Oilexco shares are listed for trading on the London Stock Exchange (LSE) and the Toronto Stock Exchange (TSX) under the symbol \"OIL\".

Forward Looking Statements

This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond Oilexco\'s control, including: the impact of general economic conditions in the areas in which Oilexco operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with oil and gas operations, therefore Oilexco\'s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amounts of proceeds, which Oilexco will derive therefrom. All statements included in this press release that address activities, events or developments that Oilexco expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include future production rates, completion and production timetables and costs to complete wells, and production facilities. These statements are based on assumptions made by Oilexco based on its experience perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.

SOURCE: OILEXCO INCORPORATED

Oilexco Incorporated
Arthur S. Millholland
President
(403) 262-5441
Oilexco Incorporated
Brian L. Ward
Chief Financial Officer
(403) 262-5441
Oilexco Incorporated
Rob Elgie
Manager Investor Relations
(403) 262-5441
Website: www.oilexco.com
Pelham Public Relations
James Henderson
Managing Director
44 (20) 7743 6673
Pelham Public Relations
Alisdair Haythornthwaite
Director
44 (20) 7743 6676