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From: TtC
Subject: Oilexco/TLM.t
To: LS
From: ttc
Subject: Oilexco - Update
Close: .21
Exchange: CDNX
Hi LS,
I've condensed this update and the financials have been
deleted. I'm not interested in financials on OIL but for the
record they broke even this quarter.
My interest is in Talisman TLM.T, Iraqi oil fields, the
"secured investor" they have lined up for the $40 million
financing, and Lifting Contracts from the UN.
I contacted the company. There is no indication yet as to
the potential size of the lifting contract and due to the
recent stand-off in Iraq it will be another 2 weeks or more
before we can confirm the amount. They have "secured" an
investor for the Talisman j/v but the name shall remain
undisclosed until the deal closes. The company indicates
that the signing of the deal is out of their hands and with
the various lawyers. It could be announced anyday.
Patience will be rewarded.
ttc
Oilexco Incorporated - Third Quarter Interim Report & Press Release
Quarterly Review and Update
Oilexco has nominated a volume of crude oil from the
Republic of Iraq, for a crude oil purchase contract under
Phase VII of the Oil for Food Program. Oilexco cannot
proceed with this contract until Phase VII of the Program is
approved by the UN Security Council. If granted, this
contract will be the third contract granted to Oilexco by
Iraq under the Oil for Food Program. The Company also
continues its discussions on oil field development and
exploration projects in Iraq. UN approval must be received
or sanctions must be lifted, prior to commencement of oil
field operations.
Workover operations were completed on the Byrd #2 well in
Monroe County, Alabama to increase oil deliverability and to
reduce water production. The operations were successful and
the well was placed back on production in September. During
the quarter an exploratory well was drilled on Oilexco's
lands in the project area. Oilexco declined to participate
for technical reasons. The well was drilled and abandoned at
no cost to the Company. Oilexco holds a 12.5% working
interest in prospect area and has to date drilled two
successful Jurassic Smackover wells for a 100% success rate.
Several offset locations to these wells have been identified
based on the interpretation of 30 square miles of
proprietary 3D seismic data.
On April 23, 1999, Oilexco entered into a Joint Exploration
Agreement with Talisman Energy Inc. ("Talisman"). The
Company has committed, on a best efforts basis, to raise up
to $40 Million CAN, to participate in western Canadian based
exploration and development opportunities. Subject to
certain conditions being met, Oilexco has secured an
investor to finance Oilexco's obligations under the Joint
Venture Agreement. Oilexco believes it is close to
satisfying those conditions.
Outlook
The Company will continue to focus its activities on its:
Joint Exploration Agreement with Talisman Energy Inc., US
Gulf Coast projects in Alabama, western Canadian prospect
areas in Alberta and Saskatchewan, and on its international
opportunities in the Republic of Iraq. Oilexco is
endeavoring to report improved financial results and cash
flows in successive quarters. For further information,
please contact Arthur S. Millholland, President or Brian
Ward, CFO, at (403) 262-5441. Oilexco is a Calgary based oil
and gas exploration company listed on the Canadian Venture
Exchange under the trading symbol OIL.
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