Fox Petroleum Inc Announces Acquisition of Leases to the West of the Badami Unit in Alaska's North Slope



    LONDON, November 29 /CNW/ - Fox Petroleum Inc. (OCTBB:FXPE) (hereafter
"FOX") is pleased to announce that it has signed an agreement to acquire
approximately 9,000 acres of prime land to the west of the prolific Badami
Unit on Alaska's North Slope, adding to the sizeable acreage already leased by
Fox.

    Fox will gain a 100% working interest on the leases, which are being
purchased from the Mr D Donkel and Mr S Cade. The agreement includes a 5% ORRI
to the original assignees, and a royalty to the state at the rate of 16.67%.
The acreage consists of 4 lease blocks, 3 of which are contiguous to the
border of the BP operated Badami unit. Fox plans to complete a technical
appraisal of the acreage, with the hope of defining a minimum of one well
location for drilling in the 2008-2009 season.

    About the Badami Unit.

    The Badami unit has proven oil reserves, and is located in close
proximity to the Prudhoe Bay oilfield, which is known to be the largest oil
and gas discovery in North America. The Badami unit has seen production since
the mid 1980's. During an aggressive 18 month timetable, British Petroleum
spent more than $312 million in development on the Badami field, 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 contains a complete existing transportation infrastructure
system, and would be critical in the development of any discovery.

    Surrounding Area.

    The surrounding areas are considered highly productive, and contain known
fields such as the Point Thomson Unit, which was originally leased by operator
ExxonMobil and partners Chevron and BP. It is the second largest oil field
after Prudhoe Bay. The unit contains significant oil reserves, but the real
potential lies in the gas reserves that are considered to be in the range of 9
trillion cubic feet of natural gas (Source: New York Times). These estimates
account for more than a quarter of the known natural gas in all North Slope
fields.

    The 4 leases are situated along the western boarder of the Badami unit
and are to the north of the Anadarko operated Jacobs Ladder Unit. Half a
decade after its inception, Jacobs Ladder is generating a considerable amount
of attention. Located 10 miles southeast of the giant Prudhoe Bay field, it is
an oil prospect in the Wahoo formation of the Lisburne group, with a potential
reservoir in eroded cavities deep in the Lisburne carbonate rocks. The
geological structure is said to replicate those found on the highly productive
Yates field in Texas.

    In October 2005, the State of Alaska approved the formation of the Jacobs
Ladder unit, which includes the Lisburne structure in the Ivishak formation of
the Sadlerochit, rocks equivalent to those in the reservoir of Prudhoe Bay.
The state Division of Oil and Gas said its geologists believe the Lisburne
(Wahoo formation) structure in the Jacobs Ladder Unit could yield a range of
20 million to 660 million barrels of oil equivalent and the Sadlerochit
(Ivishak formation) structure could yield a range of 50 million to 800 million
barrels of oil equivalent. (Source: Petroleum News)

    "Establishing our presence in the highly competitive North Slope region
of Alaska is essential if we are to compete with the major players in the
area. Fox's recent acquisition strengthens our presence and the acreage we
have gained shows considerable potential. Fox is determined to prove that we
are serious contenders in this prolific area, and our main focus will continue
to be to achieve production and profitability" - Richard Moore, President and
CEO. Fox Petroleum.

    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 infrastructures 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.

    "Establishing our presence in the highly competitive North Slope region
of Alaska is essential if we are to compete with the major players in the
area. Fox's recent acquisition strengthens our presence and the acreage we
have gained shows considerable potential. Fox is determined to prove that we
are serious contenders in this prolific area, and our main focus will continue
to be to achieve production and profitability" - Richard Moore, President and
CEO. Fox Petroleum.

    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 14,000 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; the 211/17 south block is estimated to have a potential of over 0.5
billion barrels of oil; the Bourbon prospect has potential of 167 mmbo; the
Liassic/Triassic Statfjord, and the Triassic Cormorant sandstone total
possible reserve of 30 mmbo; the Upper Jurassic Magnus, and the Ptarmigan
sandstones, represent an additional total potential of 278 and 45 mmbo; Fox
may be able to tie into existing infrastructure; an exploration well is
planned on 211/17 South for 2008; Fox will be able to define a well location
on the 9,000 acres and drill a well in the 2008-2009 season.

    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, the 211/17 South JV, the
Cook Inlet and North Slope lease acquisitions, and our ability to participate
in the exploration of, and successful completion of development programs on
all aforementioned prospects and leases. 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 www.foxpetro.com

Organization Profile

FOX PETROLEUM INC

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890