FOR:  OILEXCO INCORPORATED
      LSE-AIM SYMBOL - OIL

TSX VENTURE SYMBOL:  OIL

January 16, 2004

Oilexco Closes Overallotment

CALGARY, ALBERTA--Oilexco Incorporated ("Oilexco" or the "Corporation") (LSE-AIM andTSX-V: OIL) announces that
it has closed the previously announced Over-Allotment Option for the sale of 4,133,400 Units of Oilexco for
gross proceeds of $4,546,740. Each Unit consists of one Common Share of the Corporation and one quarter of a
Common Share Purchase Warrant. One whole Warrant is exercisable into 1 Common Share at CDN$1.65 for a period of
2 years from the date of issuance.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy these securities
in any jurisdiction.

This announcement has been issued by Oilexco, and the directors of Oilexco accept responsibility for this
announcement. Canaccord Capital (Europe) Limited which is authorized and regulated by the Financial Services
Authority in the United Kingdom, has approved this announcement for release solely for the purpose of Section
21 of the Financial Services and Markets Act 2000.

Canaccord Capital (Europe) Limited is acting as agent to Oilexco in connection with the Offering in the United
Kingdom and other European jurisdictions, and will not be responsible to any other person or persons for
providing the protections afforded to customers of Canaccord Capital (Europe) Limited or for giving advice in
relation to the Offering or the content of this announcement. In acting for Oilexco, Canaccord Capital (Europe)
Limited has relied on information provided to it by both Oilexco and its directors.

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FOR FURTHER INFORMATION PLEASE CONTACT:

Oilexco Incorporated
Arthur S. Millholland
President
(403) 262-5441

OR

Oilexco Incorporated
Brian L. Ward
Chief Financial Officer
(403) 262-5441

OR

Canaccord Capital (Europe) Limited
Neil Johnson, CFA
Managing Director, Corporate Finance
(0) 20-7518-7372

The TSX Venture Exchange has not reviewed nor accepts responsibility for the adequacy or accuracy of this News
Release.

INDUSTRY:  OIL
SUBJECT:   NWS

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OILEXCO