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Oilexco (OIL)

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Monday 06 February, 2006

Oilexco

Drilling Report



FOR:  OILEXCO INCORPORATED

TSX, AIM SYMBOL:  OIL

February 6, 2006

Oilexco and Sterling Resources Select New Location for UK North Sea Tay Project

CALGARY, CANADA--(CCNMatthews - Feb. 6, 2006) - Oilexco Incorporated ("Oilexco") (TSX:OIL) (AIM:OIL) and
Sterling Resources Ltd ("Sterling") (TSX VENTURE:SLG) have selected a new location for drilling a test well in
Block 21/23a in the UK Central North Sea. The new site, called Disraeli, targets the Eocene Tay Formation
southwest of the originally planned test well.

Recent geological and geophysical work completed by Oilexco suggests a greater likelihood of success than the
original site. The Disraeli site is immediately southwest of the 2005 Saxon oil discovery (formerly called
Gladstone) in Block 21/23b. The Disraeli prospect, if successful, could be brought into production earlier than
a discovery at the originally planned test well location. In addition, seismic and rock physics studies on the
Disraeli prospect by Oilexco's technical partner, Ikon Science, indicate the presence of a larger Jurassic
prospect below the primary Eocene target.

The first test well is expected to be drilled before the end of May, and will be completed by either the Sedco
712 or the Bredford Dolphin drilling rig. Oilexco will pay 95% of the drilling costs to earn 65% ownership, and
Sterling will retain the remaining 35%.

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.

Oilexco is listed on the Alternative Investment Market of the London Stock Exchange plc and the Toronto Stock
Exchange, in each case trading under the symbol OIL.

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FOR FURTHER INFORMATION PLEASE CONTACT:

Oilexco Incorporated
Arthur S. Millholland
President
(403) 262-5441

OR

Oilexco Incorporated
Brian L. Ward
Chief Financial Officer
(403) 262-5441

OR

Oilexco Incorporated
Gerry L. Roe
Chief Operating Officer
(403) 262-5441

OR

Oilexco Incorporated
Rob Elgie
Manager Investor Relations
403) 262-5441
Website: www.oilexco.com

INDUSTRY:  OIS
SUBJECT:   OEX

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OILEXCO INCORPORATED

						                                                                                                                                 

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