Fox Petroleum Inc. Announces Major Acquisition of Leases in Alaska's Prolific Gas Region, The Cook Inlet

    LONDON, October 25 /CNW/ - Fox Petroleum Inc. (OTCBB: FXPE - News)
(hereafter "FOX") is pleased to announce it has signed an agreement to acquire
approximately 42,000 acres containing the Catcher's Mitt Prospect located in
the Cook Inlet region on the south coast of Alaska, adding to their existing
32,000 acre Alaskan North Slope exploration portfolio.

    Fox has signed an agreement to acquire a 100% working interest in
approximately 42,000 acres of high impact gas prospects in the Kenai Peninsula
region of Alaska's Cook Inlet. Fox Petroleum's 8 new leases are located
onshore, and are in close proximity to many major production sites. Two wells,
the BA Bell Island well and the Unocal Figure Eight well, drilled on the
structure down-dip demonstrated gas shows.

    "This major acquisition provides us with a unique opportunity to have
immediate impact in the Cook Inlet. The region has a proven gas history, an
existing transportation infrastructure and a pressing industrial gas shortage
that demands further development and production occur. Fox Petroleum is
confident that we can take advantage of the situation to quickly move our
development plan forward" states CEO, Richard Moore.

    About the Cook Inlet

    The Cook Inlet is a large ocean opening that stretches 180 miles from the
Gulf of Alaska to Anchorage in south-central Alaska. The area is home to over
20 producing fields with proven reserves of over 1.6 TCF of gas as of 2006.
The Cook Inlet is home to the majority of commercial and residential energy
demand in Alaska, with over 330,000 natural gas consumers in the area and
growing demand. Recent natural gas supply shortages have encouraged
exploration and drilling companies to expedite their development programs,
resulting in renewed interest and investment in the region. Agrium, a leading
global producer and marketer of agricultural nutrients, industrial products
and specialty fertilizers has recently expressed interest to obtain long term
gas supply contracts as they have unfortunately been forced to shut down
operations at their Kenai plant due to lack of consistent natural gas supply.
ConocoPhillips, Aurora Gas, Pioneer Natural Resources, Marathon Oil,
Renaissance Alaska LLC and Unocal make up just a few of the region's explorers
and producers.

    About The Catcher's Mitt Prospect

    The Catcher's Mitt leases are large high impact multi layered gas
prospects located on the east coast of the Cook Inlet, West of Anchorage
Alaska. The area is experiencing a recent renaissance in infrastructure
development and exploration activity. The jointly owned Kenai Kachemak
Pipeline developed by Marathon Oil and Chevron (formerly Unocal) runs directly
through the property from the city of Kenai, 32 miles south to Ninilchik, with
a capacity of 260mmcfd of gas. Recently, the pipeline was extended inland 15
miles to the southeast to connect with Chevron's Happy Valley gas field.
Escopeta Oil, an E&P company based out of Texas, has recently extended the
distribution infrastructure in their adjacent North Alexander Unit, which they
have recently permitted for drilling.

    Exploration Plans

    Fox has contracted a Certified Petroleum Geologist named Jerry Hodgden of
Hodgden and Associates (Geoscientists) to complete a technical report on the
Catcher's Mitt prospect using the existing surface and sub-surface data from
the region, in order to facilitate a better understanding of its hydrocarbon
potential. It is anticipated that the data analysis period will take 30 to 45
days. Fox hopes to define several test well targets, which could be permitted
for drilling in 2008. Given the large amount of activity currently taking
place in the surrounding area leases, Fox Petroleum is also considering joint
venture drilling opportunities and cost-saving consecutive drilling programs
with neighboring gas exploration and drilling companies.

    Jerry Hodgden stated "Fox Petroleum's Catcher's Mitt Prospect area first
came to my attention over three decades ago as a pair of large anticlinal
structures with good gas shows at reasonable depths in nearby wells. As the
production from the aging Beluga and Kenai Gas Fields is in sharp decline,
there is a strong need for new gas reserves in the area, and the Catcher's
Mitt structures are in close proximity to a pipeline to Anchorage and to other
nearby cities and plants where there is growing demand for this diminishing
product. What could be better? A big anticlinal structure close to a pipe line
to take gas directly to a ready market where gas is selling for record

    Further Information

    Shareholders and prospective investors are encouraged to visit Fox
Petroleum's website: 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
symbol FXPE.

    On behalf of the Board of Directors


    Alex Craven, Vice President, Finance


    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 book able 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.

    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)

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