TSX 500-point drop

TSX 500-point drop midday

DAVID FRIEND
Thursday, November 20, 2008
TORONTO — The Toronto stock market revived from a 500-point tumble Thursday morning but was still showing deep triple-digit losses as mining stocks crumbled and the banking industry revealed more bad news.

The S&P/TSX composite index was down 335.61 points to 8,154.95 at midmorning after going as low as 7,947, down 544 points. That was the first time the benchmark index had been below 8,000 since December 2003, and represented a drop of 47 per cent from the market's peak just five months ago at 15,073.

The Canadian dollar accelerated its slide, losing 2.17 cents to 77.66 cents US, after dropping 1.48 cents Wednesday. The currency traded as low as 77.31 cents.

Toronto financial stocks were down 7 per cent after TD Bank disclosed $350-million in quarterly credit trading losses. Its stock lost $3.49 to $46.44, and all the other big Canadian banks were also sharply lower. Royal Bank lost 8 per cent to $37.95 and CIBC fell 9 per cent to $44.

Metal stocks slid 10.3 per cent. Teck Cominco Ltd. was down 23 per cent to $4.00 after it suspended dividends, slashed capital spending plans by $730-million and sold assets to cut debt taken on for the $14-billion (U.S.) takeover of the Fording Canadian Coal Trust.

Kinross Gold Corp. rose 41 cents to $14.35 (Canadian) on word it is paying $250-million (U.S.) to buy the Lobo-Marte gold site in Chile from Teck Cominco and Anglo American PLC.

The TSX energy sector fell 5.3 per cent as crude oil dipped under the $50-a-barrel mark, reviving slightly in later trade to lose $2.94 at $50.68 a barrel on the New York Mercantile Exchange.

On Wall Street, the Dow Jones industrial average declined 145.76 points to 7,852. The Nasdaq composite was off 20.60 at 1,366 and the S&P 500 shed 19.88 to 787.

A jump in weekly U.S. unemployment claims to a 16-year high was the latest piece of depressing economic data. The Labour Department said applications for jobless benefits rose to a seasonally adjusted 542,000 last week, from a downwardly revised 515,000 in the previous week.

Overseas, Japan's main stock index plummeted 6.9 per cent and other markets were also solidly in the red.

Tokyo's benchmark Nikkei 225 average slid 570.18 points to 7,703.04 as data showed exports in October sank 7.7 per cent, the biggest decline since 2001. The rare trade deficit follows confirmation earlier this week that Japan is in recession. Hong Kong's Hang Seng index fell four per cent.

Losses deepened as the day went on in Europe, with the FTSE 100 index down 4.1 per cent in the afternoon in London.

The German DAX fell 4.5 per cent and the Paris CAC-40 lost 4.6 per cent after French automaker PSA Peugeot Citroen said it will cut 2,700 jobs from its 200,000-person workforce in response to skidding European car sales.

© Copyright The Globe and Mail

Oilexco Files Amended and Restated Preliminary Prospectus for Offering of Up to U.S. $150,000,000

Oilexco Files Amended and Restated Preliminary Prospectus for Offering of Up to U.S. $150,000,000 of Senior Unsecured Convertible Bonds and Up to 20,000,000 Common Shares
19:56 EST Wednesday, November 19, 2008


CALGARY, ALBERTA--(Marketwire - Nov. 19, 2008) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

Oilexco Incorporated ("Oilexco" or the "Corporation") (TSX:OIL) (LSE:OIL) today announced that it has filed an amended preliminary prospectus with securities regulators in certain provinces of Canada for an offering of Convertible Senior Unsecured Bonds and Common Shares. The offering is being marketed on a commercially reasonable efforts basis by a syndicate led by Canaccord Adams Inc., and including FirstEnergy Capital Corp. (the "Agents").

The offering being marketed consists of up to U.S. $150,000,000 aggregate principal amount of Convertible Senior Unsecured Bonds due 2013 (the "Bonds") and up to 20,000,000 common shares (the "Common Shares") at an issue price of C$2.25. Subject to market conditions, the offering is anticipated to close on or about December 5, 2008.

The Bonds are expected to be senior, unsecured obligations of Oilexco bearing interest at an annual rate of 15% payable quarterly in arrears commencing in March, 2009 and maturing five years and one day following the closing date. Bonds are expected to be convertible at the option of the holder into common shares of Oilexco at a conversion price (using a fixed exchange rate of U.S.$1.00=C$1.2239) of C$2.74 per common share from the 41st day after the closing date to the 6th business day before the maturity date. If a holder converts Bonds before the third anniversary of the closing date, then Oilexco would pay to the holder two-thirds of the nominal value of the remaining interest that would otherwise be payable on the Bonds up to the third anniversary of the closing date (the "Make-Whole"). The Make-Whole premium would be payable in cash or (subject to regulatory approval) Oilexco common shares at the option of Oilexco, with the number of common shares determined by the volume weighted average trading price of Oilexco's common shares on the Toronto Stock Exchange for the ten trading days prior to the date of conversion.

Oilexco would have the right to convert all but not some only of the Bonds into common shares at the same conversion price from the date which is three years and 21 days after the closing date if the value of a common share issuable on conversion exceeds 200% of the conversion price over a certain trading period.

The net proceeds from the offering will be used to repay o30 million of bank indebtedness, which allows the deferral of the remaining o70 million until November 2009, to fund the Corporation's 2009 capital spending program at its development properties and for general corporate purposes.

An amended and restated preliminary prospectus qualifying the distribution of the Bonds and Common Shares has been filed in the provinces of British Columbia, Alberta, Manitoba and Ontario and the offering is subject to regulatory approval. The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States unless exemptions from the registration requirements of such Act and applicable state securities laws are available.

About Oilexco

Oilexco is an oil and gas exploration and production company active in the United Kingdom. Oilexco's producing properties, exploration and development activities are located in the UK Central North Sea, specifically in the Outer Moray Firth and Central Graben areas. Oilexco operates in the United Kingdom through its wholly owned subsidiary, Oilexco North Sea Limited, a company registered under the laws of England and Wales. Oilexco shares are listed for trading on the London Stock Exchange (LSE) and the Toronto Stock Exchange (TSX) under the symbol "OIL".

Forward Looking Statements

This press release includes forward-looking statements regarding the proposed offering and the anticipated use of proceeds thereof. These forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Oilexco's control, including: the terms and conditions of the bonds, the completion of the offering, the impact of general economic conditions in the areas in which Oilexco operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with oil and gas operations, therefore Oilexco's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amounts of proceeds, which Oilexco will derive therefrom. All statements included in this press release that address activities, events or developments that Oilexco expects, believes or anticipates will or may occur in the future are forward-looking statements.

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
Oilexco Incorporated
Rob Elgie
Manager Investor Relations
(403) 262-5441


Website: www.oilexco.com

or
Pelham PR
James Henderson
Managing Director
44 (20) 7743 6673




or
Pelham PR
Alisdair Haythornthwaite
Director
44 (20) 7743 6676




or
Canaccord Adams
Jeffrey Auld

44 (20) 7050 6500




or
Canaccord Adams
Eli Colby

44 (20) 7050 6500






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