Fox Petroleum Enters into an Agreement to Acquire Additional North Slope Acreage



    LONDON, November 2 /CNW/ - Fox Petroleum Inc. (OTC BB: FXPE - News)
(hereafter "Fox Petroleum") is pleased to announce it has signed an agreement
to acquire approximately 5,000 acres of prime land adding to their existing
32,000 acre Alaskan North Slope exploration portfolio.

    The leases, which are contiguous to the BP Badami Unit and ExxonMobil
Point Thomson Unit, also adjoin the northern border of the AVCG LLC/ Brookes
Range Petroleum acreage. Fox will acquire a 100% working interest on the
leases, on which there is a 5% ORRI to the original assignees, Mr Daniel
Donkel and Mr Samuel Cade, and a state royalty of 16.67%.

    Highly Prospective Region

    Both the surrounding units have proven hydrocarbon reserves. The BP
operated Badami field, developed in the late 1990s, is on Mikkelsen Bay to the
east of Prudhoe Bay. With an aggressive 18 month timetable, BP spent more than
$312 million in development at Badami, a reservoir estimated to contain 120
million barrels of oil. BP recorded peak production on the Badami Field of
over 18,000 barrels of oil per day during the late 1990s. Badami has a
complete existing infrastructure, and would be critical in the development of
any discovery.

    Point Thomson contains Alaska's North Slope's second largest gas reserves
after Prudhoe Bay, and was until recent disputes leased by operator
ExxonMobil, and partners Chevron and BP. The unit contains significant oil
reserves, but the magnitude of gas reserves is in the order of 9 trillion
cubic feet of natural gas (Source: New York Times), which is estimated to be
more than a quarter of the known natural gas in all North Slope fields. Mark
Cotham, a Houston, Texas, attorney for the Port Authority, stated that Point
Thomson's oil and gas are worth perhaps $50 billion. Point Thomson figures
heavily into any plan for a gas pipeline, and further increases hopes that in
the future, North Slope gas will reach the lower 48 States.

    The recently acquired leases are directly between these two units with
huge proven reserves, and contain the Exxon B.St. Well and the BP Red Dog
well. The local infrastructure associated with these fields such as roads,
pipelines and processing units, should be relatively easy to tie into, if a
future discovery is made. The leases are only around 5 miles from the Badami
processing facilities, thus making it cost effective to tie in. The analog and
offset well data indicates that the leases are very prospective.

    "We're delighted to announce that we have signed the agreement to acquire
this acreage. Lying between two very significant North Slope Discoveries, we
feel this is a hugely prospective area. Should we make a discovery, the local
infrastructure should make field development both economically viable and
relatively quick to tie into." stated Alex Craven, Vice President, Finance.

    About the North Slope

    The U.S. Geological Survey (USGS) recently completed an assessment of
undiscovered oil and gas resources of the central Alaska North Slope and the
adjacent offshore belonging to the State of Alaska. This area lies between the
National Petroleum Reserve in Alaska (NPRA) and the Arctic National Wildlife
Refuge (ANWR) and extends from the Brooks Range northward to the State-Federal
offshore boundary. Most commercial oil fields and virtually all
petroleum-producing infrastructure in northern Alaska are located within the
assessment area. This area, which consists mostly of State and Native lands
covering about 23,000 square miles (59,500 km2), is maturely explored in the
north but only lightly explored in the south. Approximately 15 billion barrels
of oil (including natural-gas liquids) have been produced from the assessment
area (most from the giant Prudhoe Bay field), and remaining (discovered)
reserves include about 7 billion barrels of oil and about 35 trillion cubic
feet of natural gas. The minimum accumulation sizes considered in this
assessment are 5 million barrels of technically recoverable oil and 100
billion cubic feet of technically recoverable gas.

    The USGS estimated technically recoverable, undiscovered resources of
oil, natural gas (non-associated and associated), and natural-gas liquids
(from non-associated and associated gas) in the central North Slope assessment
area. Oil resources range between 2.6 and 5.9 billion barrels of oil (BBO)
(95% and 5% probabilities), with a mean of 4.0 BBO. Non-associated gas
resources range between 23.9 and 44.9 trillion cubic feet (TCF) (95% and 5%
probabilities), with a mean of 33.3 TCF. In addition, means of 4.2 TCF of
associated gas, 387 million barrels of natural-gas liquids (MMBNGL) from
non-associated gas, and 91 MMBNGL from associated gas are estimated to occur.

    Exploration Plans

    Fox Petroleum is currently seeking to acquire all available data on the
leases, such as seismic, gravity and magnetic data, which they plan to tie in
with the existing well logs and other offset and analog data. Fox has also
spoken with several of the neighbouring companies, some of whom are shooting
new 3D data over the acreage this winter. It is envisaged that this data will
be made available to Fox either through purchase or some other mutually
attractive agreement.

    "This entire area is hot. Historically there are reports supporting over
half a billion barrels of oil and trillions of cubic feet of gas recoverable
in and around the Point Thomson and Badami fields. This season our neighbours,
Savant and Brookes Range, are conducting seismic surveys on a huge scale, and
have identified real prospects for drilling in 2008. We have great respect for
these companies and we are working with them to define our work program, and
to jointly optimise the development of the entire area from Liberty, through
Badami, all the way to Point Thomson, of course covering the Fox acreage in
between." states CEO, Richard Moore.

    Further Information

    Shareholders and prospective investors are encouraged to visit Fox
Petroleum's website: www.foxpetro.com and download Fox Petroleum's Investor
Summary. Please feel free to call investor relations toll-free at
1-888-369-4744 to receive a full corporate investor's package.

    About Fox Petroleum

    Fox Petroleum Inc. is an Oil and Gas Exploration Company headquartered in
London, England, the financial capital of Europe. Fox also has an operations
office in Anchorage, Alaska. Fox's current targets include mineral rights to
32,000+ acres in Alaska's North Slope estimated to represent a potential of up
to 160 million barrels of oil (LAPP Resources, Inc.), and the rights to a
33.33% ownership stake in a 37,000+ acre UK North Sea license which could
potentially hold up to 213 million barrels of oil (TRACS International Ltd).
Fox has a 22.5% interest in JV of an onshore Texan gas well, and has also
signed agreements to acquire roughly 5,000 acres on the North Slope and
approximately 42,000 of land onshore in the Cook Inlet containing the
Catcher's Mitt Prospect. The Company's shares are publicly traded on the NASD
OTC BB under the ticker symbol FXPE.

    On behalf of the Board of Directors

    FOX PETROLEUM INC.

    Alex Craven, Vice President, Finance

    NASD OTC BB: FXPE

    Legal Notice Regarding Forward-Looking Statements

    Legal Notice Regarding Forward-Looking Statements in this news release
that are not historical facts are forward-looking statements that are subject
to risks and uncertainties. Forward-looking statements are based on current
facts and analyses and other information that are based on forecasts of future
results, estimates of amounts not yet determined and assumptions of
management. Forward looking statements are generally, but not always,
identified by the words "expects", "plans", "anticipates", "believes",
"intends", "estimates", "projects", "aims", "potential", "goal", "objective",
"prospective", and similar expressions or that events or conditions "will",
"would", "may", "can", "could" or "should" occur. Information concerning oil
or natural gas reserve estimates may also be deemed to be forward looking
statements, as it constitutes a prediction of what might be found to be
present when and if a project is actually developed.

    Forward-looking statements in this news release include that our mineral
rights in Alaska's North Slope is estimated to contain a potential of up to
160 million barrels of oil; that UK North Sea license which we own a 33.33%
ownership could potentially hold up to 213 million barrels of oil; that the
Spears Gas Well is estimated to be spudded within this quarter of 2007 or
could become Fox Petroleum's first production well; that acquisition of the
22.5% joint venture interest in the Spears Gas Well could result in short term
revenue, production or bookable reserves; that the revenue potential of the
Spears Gas Well could cover the investment in a matter months; that Spears Gas
Well could potentially produce up to 3,000 MCFGPD or greater; we could
potentially drill a well on the Catcher's Mitt prospect in 2008; there will be
sufficient capacity in the pipeline from Catcher's Mitt if gas is produced; we
will be granted rights to explore the all acreage from the relative governing
bodies.

    Actual results may differ materially from those currently anticipated due
to a number of factors beyond the reasonable control of the Company. It is
important to note that actual outcomes and the Company's actual results could
differ materially from those in such forward-looking statements. Factors that
could cause actual results to differ materially include misinterpretation of
data, inaccurate estimates of oil and natural gas reserves, the uncertainty of
the requirements demanded by environmental agencies, the Company's ability to
raise financing for operations, breach by parties with whom we have
contracted, inability to maintain qualified employees or consultants because
of compensation or other issues, competition for equipment, inability to
obtain drilling permits, potential delays or obstacles in drilling operations
and interpreting data, the likelihood that no commercial quantities of oil or
gas are found or recoverable, successful closing of the acquisition of joint
venture partnership interest in the Spears Gas Well, and our ability to
participate in the exploration of, and successful completion of development
programs on, the Spears Gas Well. Additional information on risks for the
Company can be found in filings on Edgar of other junior oil and gas
exploration companies with the US Securities and Exchange Commission.

    

SOURCE: Fox Petroleum Inc http://www.foxpetro.com

For further information:

For further information: Fox Petroleum Inc. Investor Relations Alex
Craven, Vice President, Finance 1-888-FOX-4744 (1-888-369-4744)
ir@foxpetro.com

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