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RBCCM Comment on OIL Results

[beckalodeon]

RBCCM didn't waste any time jumping on Oilexco's quarterly results - the analyst obviously loves what he sees (the title is "Material growth in production and earnings"). Here's the full text of the First Impression comment for those who don't have full access: ======================================== Oilexco Inc. (TSX: OIL; 15.42; LSE: OIL) Q3/07 Results Review Outperform Above Average Risk Material growth in production and earnings First Impression North Sea focused Oilexco today announced a substantial increase in quarterly earnings and cash flow, and highlighted the imminent drilling of its high-profile Morro/Coronado prospect. • Q3 Production: 21,605b/d, up from 6,200b/d in Q2 2007 - Brenda/Nicol were brought on stream in June. However, production was shut-in for 17 days due to scheduled maintenance on the Balmoral FPV and 3rd party export infrastructure. On the operational days production averaged 26,700b/d, which is in line with our expectations. • Earnings: $54.6m (EPS $0.25) up from $4.7m in Q3 2006, boosted by the surge in output and higher realisations. • EBITDA: $119m up from -$1.3m in Q3 2006. • Net Debt: Oilexco ended Q3 with net debt of $317m, including cash of $60m. • Shelley: Appraisal nearing completion; management targeting first oil in Q3/08. • Morro/Coronado prospect: High-impact well will be spudded immediately after the rig completes the Shelley appraisal. This well will target structures analogous to Oilexco's high-profile Huntington discovery. • Regular newsflow: Oilexco has access to rigs and a portfolio of undrilled prospects; this combination should result in a steady stream of newsflow in the coming months. • Analyst presentation in London on Thursday 15th November, 11:00 GMT. ============================================== cheers, beck