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November 1, 2006 VANCOUVER, BC—Lexaria Corp. (OTC BB: LXRA) (the "Company" or "Lexaria") provides the following operational update. The Company has interests in three different geographical areas: Mississippi; Oklahoma; and Alberta. MISSISSIPPI Lexaria’s main current focus is in two drilling programs underway in Mississippi with our joint venture partner and operator, Griffin & Griffin L.L.C. The first agreement was for a 10-well drilling program to be conducted in the Palmetto Point prospect. This is a 32,000 acre prospect for which 3-D seismic has already been acquired. Seven of these wells have been drilled to date, and five were successful and are currently in production. The remaining three wells are expected to be drilled in November and December, 2006. Production from the first five wells has been limited due to lack of compression in the pipeline, but additional compression is expected to be installed by December, 2006. The Company has a 20% gross interest in this 10-well program and has already paid all its expected costs. Due to the success of the first drill program, Lexaria increased its interest to 40% in a second drilling program of up to 50 additional wells. Lexaria has budgeted $1.6 million for the first phase of this program. These wells will be drilled in several areas, including Palmetto Point (32,000 acres); Red Bug (11,840 acres); Tecumseh (20,800 acres); and Buffalo River (32,000 acres). The Company has many existing drill targets on each of these properties. All four of these properties have already been shot with 3-D seismic. One well of this program has been completed on the Red Bug property with results pending. Additional drilling on the Palmetto Point and Tecumseh properties is expected to commence in December, 2006 or January, 2007. As well, the approximately 1,000 acre Plymouth Church Wilcox oil target which has been defined by twelve 2-D seismic lines, will also be tested. The Plymouth Church well is expected to spud by December, 2006. Lexaria has also purchased a 20% interest in two previously drilled Griffin & Griffin wells, and expects to participate as to 40% interest, in the acquisition of certain local pipeline gathering systems. OKLAHOMA Lexaria has a 7.5% interest, exclusive of existing production, in the 1120 acre Owl Creek Project. The Company has no current production from this property and is currently participating as to its 7.5% interest in its first well, the Isbill #1-36. Results are pending. ALBERTA Lexaria has up to a 4.0% gross interest in the Strachan 14-9 well in Alberta. This well has been drilled to total depth of 13,650 feet and partially completed, with total costs to date of over $10 million. Extremely high gas pressures of over 10,000 psi were encountered in more than a single zone and final completion has been difficult. Final results from this well are not yet available but will be provided as soon as possible. Outside of these properties, the Company has no additional interests at this time. However, it is constantly reviewing additional opportunities at both the project level as well as from a corporate acquisition standpoint. Lexaria has received $2 million proceeds from a recently completed financing and has sufficient funds to complete the current phases of all its drill programs. The Company does not have any specific needs for additional capital at this time. About Lexaria Corp. Lexaria Corp. is an oil & gas company active in Mississippi, Oklahoma and in Alberta, Canada. The main focus currently is Mississippi, where it holds between 20% and 40% gross interests in various gas and oil projects. Lexaria routinely evaluates additional oil & gas projects and corporate opportunities. Contact: Statements which are not historical facts are forward-looking statements. The Company makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors but they include and are not limited to the existence of underground deposits of commercial quantities of oil and gas; cessation or delays in exploration because of mechanical, operating, financial or other problems; capital expenditures that are higher than anticipated; or exploration opportunities being fewer than currently anticipated. The Company has no official gas or oil reserves at this time and may not have sufficient funding to thoroughly explore, drill or develop its properties. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors which may be identified from time to time in the Company's public announcements and filings. |