LONDON, August 14 /CNW/ - Fox Petroleum Inc. (NASD OTC BB: FXPE - News)
is pleased to announce that it has successfully completed the acquisition of
approximately 32,000 acres of prime land in Alaska's North Slope region in and
near Prudhoe Bay.
Alaska's North Slope area is a prolific basin with 23 producing
hydrocarbon fields that produce 16% of the domestic oil supply for the US, at
a rate of over 800,000 barrels of oil per day. Prudhoe Bay, which adjoins the
majority of Fox's leases, is the largest oil field in North America at over
200,000 acres, and with roughly 1,100 active well sites. Operated by BP, it
has produced over 10 billion barrels of oil equivalent to date, and averages
production in excess of 400,000 barrels of oil per day.
East Prudhoe Bay Prospect
The larger of Fox's two parcels of land, the East Prudhoe Bay Prospect,
represents 26,789 acres of contiguous land in close proximity to major players
such as Exxon Mobil, BP, Chevron and ConocoPhillips.
The area's hydrocarbon prospectivity is highly encouraging based on the
production of two analog wells - the Delta State 2 Well producing oil within
the Fox lease block, and Amoco's Foggy Island Bay State 1 Well producing oil
and gas, which lies approximately one-half mile to the east of Fox's property.
Arco Pipeline Prospect
The Arco Pipeline prospect is a 5,701-acre parcel of land located near
the key existing transportation infrastructure of the Trans Alaskan Pipeline
and Alaska's all-weather Dalton highway. The Pipeline State 1 Well is located
in the southeast corner of the Arco Pipeline Prospect, and has recorded oil
and gas shows at three separate intervals between 7,800 and 10,400 feet. Fox's
prospect is neighboured by ENI, Italy's largest energy company.
Report & Potential Reserves
Fox Petroleum engaged LAPP Resources, Inc. to prepare a geological report
on the Alaska North Slope leases. Based on well production within and around
Fox's Alaskan acreage, the April 2007 LAPP report estimated the leases could
potentially represent up to 160 million barrels of oil or $9.92 billion at
Fox is currently conducting a technical work program using the existing
surface and sub-surface data from the region to facilitate a better
understanding of its hydrocarbon potential. It is anticipated that the data
analysis period will take 60 to 90 days. Fox expects to define several test
well targets, which would hopefully be drilled in a timely manner commencing
in the first part of 2008.
"Formal conclusion of this acquisition is an extremely important step
forward for Fox, and we look forward to completing the technical work already
underway with the focus on seeing these prospects fully appraised and drilled
in the near future." says CEO, Richard Moore.
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 or to sign up to
receive current and breaking news from the company.
About Fox Petroleum
Fox Petroleum Inc. (OTCBB:FXPE) 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 projects 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 a
33.3% ownership stake in a 37,000+ acre UK North Sea block which could
potentially hold up to 213 million barrels of oil (TRACS International Ltd).
The Company's shares are publicly traded on the NASDAQ OTC BB under the ticker
On behalf of the Board of Directors
FOX PETROLEUM INC.
Alex Craven, Vice President, Finance
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, including, but not
limited to, the Company's belief that we can participate in the exploration of
those properties, and that we will maintain our management team. 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 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,
competition for equipment, inability to obtain drilling permits, potential
delays or obstacles in drilling operations and interpreting data, and the
likelihood that no commercial quantities of gas are found or recoverable.
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)