Location: Garvin and McClain counties, Oklahoma.

Lexaria has acquired a 7.5% interest in the Owl Creek Project for payment of $100,000.00.

Lexaria believes that the success of the Powell #2 well, producing roughly 140 BO/D and 40mcf/d as of June, 2007, could be repeated over the 1120 acre lease block with multiple prospective horizons possible in some wells making the Owl Creek Project an attractive property for further development. Lexaria has no interest in the Powell #2 well.

In particular, the Upper Viola and the Trenton are of special interest. Proprietary 3-D seismic data offers precise mapping and supports the potential for multiple well locations. Lexaria has participated in the drilling of two wells at Owl Creek since it acquired its interest, and one of those, the Isbill #2, is producing roughly 40 BOPD and 10Mcf/d as of June 2007.

The property is currently being evaluated to determine how many additional wells might be drilled, or whether other strategies should also be considered.