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North sea oil producer Oilexco appoints E&Y 7 January 2009

Oilexco North Sea Limited concentrates on fields with proven oil reserves and using its expertise to turn the fields into economically viable assets.

The company began experiencing difficulties in mid 2008 in raising finance to continue its planned drilling and development programme and in recent months a strategic review was undertaken, leading to buyers being sought for the business. The company currently produces around 16,000 barrels of oil per day and is on the verge of producing oil from the Shelley field which, along with other current drilling activity, is expected to result in total production of over 30,000 barrels per day. The company employs around 100 staff at its two offices in Aberdeen and offshore in the North Sea.

It is believed that Oilexco had sought further financing of around £26.5m from their bankers, Royal Bank of Scotland.

The Administrators intend to continue with existing operations with a view to finding a buyer for the business. Roy Bailey, one of the Joint Administrators, indicated that he had already been approached by several interested parties with a view to purchasing the whole or part of the company’s business and assets.



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