Oilexco: Leader in North Sea Exploration and Production

Oilexco Inc.'s (OILXF.PK) well-balanced portfolio of development, appraisal, and exploration opportunities, make it the "go to" name when it comes to oil exploration and production in the U.K. North Sea, according to Wellington West analyst Malcolm Shaw.

In a note to clients Mr. Shaw said:

With 25,000 barrels of oil per day of productive capacity now established from the Brenda-Nicol and Balmoral fields, we expect Oilexco to continue to organically grow their production base as they bring additional discoveries onstream.

He said Oilexco's long-term rig contracts provide the company with immediate access to drill-ready prospects at reasonable prices, and added that Oilexco's business model of "growth through the drill bit" will benefit the company as it generates value for its shareholders.

Mr. Shaw said he sees potential for Oilexco to reach cash flow per share of C$3.80 in 2009 up from 2007 CFPS of C$1.09, and maintained his "buy" recommendation and C$17.50 price target on the shares.