LGX Oil + Gas Inc ROAOF

Oilexco Commences Phase Two PR

[bcjt]

Oilexco Commences Phase Two of UK North Sea Appraisal Drilling Program 7/2/04 CALGARY,ALBERTA, Jul 2, 2004 (CCNMatthews via COMTEX) -- Oilexco Incorporated ("Oilexco") (TSX-V: OIL; LSE-AIM: OIL) announces that the second phase of it's Block 15/25b appraisal drilling program located in the Outer Moray Firth of the UK North Sea has commenced. Drilling operations utilizing the Transocean mid-water semi-submersible J.W. McLean have started on 15/25b-10, Oilexco's next appraisal well at the "Brenda" oil find. This new well is the fourth appraisal well (the sixth appraisal bore-hole inclusive of sidetracks) drilled by Oilexco at "Brenda". The first three appraisal wells; 15/25b-6, 15/25b-8, and 15/25b-9, and two sidetrack bore holes; 15/25b-9z, and 15/25b-9y at "Brenda", appraised an undeveloped discovery made in 1990 at 15/25b-3. The bottom-hole location of 15/25b-10 is 1.2 kilometers northwest of 15/25b-9, and 2.0 kilometers west of 15/25b-8. The 15/25b-10 well is the first well of the second phase of Oilexco's "Brenda" appraisal program to be drilled under a four well drilling contract with Transocean, consisting of one (1) firm well and three (3) option wells. Oilexco has identified additional appraisal locations designed to define the limits and ultimate reserves at "Brenda". Oilexco's interest in the "Brenda" oil find is 100%. Oilexco is listed on the Alternative Investment Market of the London Stock Exchange plc ("LSE-AIM") and the TSX Venture Exchange ("TSX-V"), trading under the symbol OIL. Oilexco Incorporated Arthur S. Millholland President [phone] or Oilexco Incorporated Brian L. Ward Chief Financial Officer [phone] NEWS RELEASE TRANSMITTED BY CCNMatthews The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Copyright (C) 2004, CCNMatthews. All rights reserved.