LONDON, October 17 /CNW/ - Fox Petroleum Inc. (NASD OTC BB: FXPE - News)
(hereafter "FOX") is pleased to provide an operations update on its 22.5%
joint venture interest in the Spears Gas Unit 2, Well #1 in the Gomez Field of
Peco County, Texas.
Trius Energy LLP has confirmed that the drilling rig to be used on the
re-entry program for the Spears Gas Unit 2 Well #1 has been obtained ahead of
original schedule, and is expected to be on site October 29, 2007. Spudding of
the well is expected to occur on the same day. It is projected that the
work-over program will take between 3 and 4 weeks. Subject to the success of
the re-entry program, Trius Energy anticipates having the well in production
before the end of November 2007.
Richard Moore, CEO of Fox Petroleum states, "We are pleased to see this
program moving forward ahead of schedule. We anticipate a quick drilling
schedule with the possibility of being in production before December.
Realizing production revenue from our first drilling program would mark a
significant milestone for Fox Petroleum."
About the Spears Gas 2 Unit
The Spears Gas Unit 2, Well #1 has produced over 23BCF of natural gas,
which equates to $149,500,000 at current market prices. The Unit is currently
estimated to contain reserves of natural gas in excess of 16.7 Billion Cubic
Feet, worth roughly $108 million. According to evaluation by Trius Energy LLC,
in association with Stratco Operating Co. MC, the Spears Gas Unit 2, Well #1
could potentially produce up to 3,000 MCFGPD or greater, which is supported by
data review of the Composite Borehole Compensated Sonic Log, Gamma Ray &
Sidewall Neutron Porosity Log, extensive reservoir analysis and recent field
data. The Spears Gas Unit neighbours a number of leading world producers of
Oil and Gas including Chesapeake Energy (NYSE: CHK), Chevron (NYSE: CVX) and
Cimarex Energy (NYSE: XEC).
Numerous wells in the immediate area have been recently re-completed with
great success. Most of these wells that permeated the Fusselman & Devonian
zones have had initial production of 2,500 to 3,000 MCFG per day. The most
significant Fusselman well is the Cimarex Dewitt Parke #2 Well which is
approximately 3 miles NW of the Spears Gas Unit, and has a cumulative
production of 7.5BCF and producing 700 MCFGPD. The most significant Devonian
well is the Chesapeake Gomez South Unit which is approximately 2 miles west of
the Spears Gas Unit, with a cumulative production of 22 BCF, currently
producing 1,040 MCFGPD.
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).
The Company's shares are publicly traded on the NASD OTC BB under the ticker
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.
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.
For further information:
For further information: Fox Petroleum Inc. Investor Relations Alex
Craven, Vice President, Finance Toll Free:1-888-FOX-4744 (1-888-369-4744)