Oilexco Will Be Delisted from TSX for Failure to Meet Requirements

The TMX Group announced Friday that Oilexco Inc. (OILXF.PK) will be delisted from the Toronto exchange at the close of market on February 9, 2009 for "failure to meet the continued listing requirements of the TSX." The stock was down another C$0.05 to C$0.18.5 in morning trading.

On Wednesday, the North Sea oil company, which is on life support due to a deadly combination of high debt and low oil prices, confirmed the court appointment of four administrators from Ernst & Young who have taken control of Oilexco's wholly-owned subsidiary Oilexco North Sea Limited in order to sell off assets.

Scotia Capital analyst Gavin Wylie told clients that it is uncertain just how much equity will be left after the banks take upwards of $800-million in outstanding debt from the disposition proceeds.

Our risked (net asset value) analysis indicates that using a long-term oil price of greater than $45 per barrel would imply some value to the equity, but may be optimistic given the circumstances.