Fox Petroleum Provides North Sea Exploration Update

    LONDON, September 11 /CNW/ - Fox Petroleum Inc. (NASD OTC BB: FXPE -
News) is pleased to provide an overview of current operations and developments
in the United Kingdom's prolific North Sea region.

    With oil first discovered in the 1960's, the North Sea region off the
coast of the United Kingdom is home to one of the world's most prolific oil
and gas producing areas. Production of oil from this region peaked in 1999
with more than 6 million barrels being produced daily. Natural Gas production
surpassed 10 trillion cubic feet in 2001 and has been steadily increasing. The
North Sea is the home of the 500 million barrel reserve Buzzard Field, one of
the largest oil discoveries in the last 25 years.

    According to North Sea consultancy firm Hannon Westwood, North Sea
drilling activity for the years 2005-2006 was the highest on record since
1998, with no less than 116 well spuds occurring during that time. Their
report entitled "Special Report: 2005-2006 UKCS E&A Drilling Activity" reveals
that 'new entrant companies' are making the biggest impact progressing
discovered reserves through appraised wells, also noting that there has been a
significant increase in wildcat drilling by new entrants and majors alike. New
entrants actually drilled more than half of the 116 wells sunk on the UKCS in
2005-06, and played an especially important role in appraising discoveries.
Fox Petroleum is pleased to be joining the ranks of new entrants to the North
Sea, with exploration of its Anglesey Prospect.

    Highlights from this report indicate that the 116 exploration wells
between 2005 and 2006 found an estimated 1.2 billion barrels of oil, with and
average of 41 mmboe per successful well. The success rate was measured to be
between 41% - 79% for finding through exploration well and progressing through
appraisal wells, which is both competitive internationally and above
historical success rates. Most notably, finding costs were measured to be
approximately $1.30 per barrel of oil, a figure competitive on the worldwide
stage, and economical to develop with current prices of WTI and Brent Crude
being over $75. (

    Currently, the North Sea is being developed by companies such as British
Petroleum, ConocoPhillips, BHP, Shell Oil, Talisman Energy, Marathon Oil,
Apache Corp, Nexen and numerous independent groups. Talisman Energy has been
leading exploration activities with participation in 12 exploration wells and
41 development wells expected for 2007. The largest of these is the Tweedsmuir
development which has begun producing approximately 45,000 boe/d. Talisman
expects to produce 150,000 barrels of oil and 124 mmcf of natural gas per day
in 2007, while exploration and development investment is set to reach $1.2
billion in the North Sea area. (

    Nexen Inc., a crude oil and natural gas production company based in
Alberta Canada, has recently made a discovery in the Yeoman prospects, which
are in the adjacent quadrant (15b/18b) to Fox's license in the Central part of
the North Sea. Nexen is completing production results on this discovery and
plans to drill two additional wells; Stag, and Hounds in the early part of the
2008. Nexen produces approximately 100,000 barrels of oil per day from their
North Sea prospects, and are looking to continue investing in additional
programs in the historically prospective areas of the North Sea, where Fox
Petroleum has it's Anglesey prospect. (

    "The North Sea is a world class oil and gas region as the numbers clearly
illustrate. We are excited by the amount of interest and activity that is
occurring in the region, and we are definitely inspired by the levels of
success being experienced by independent companies and majors alike. We
eagerly anticipate the completion of the technical analysis from our recent
seismic work on our 37,000 acre Anglesey Prospect, and look forward to
establishing a work program for the area." stated Richard Moore, CEO of Fox

    Fox's Anglesey Prospect is a 33.33% joint venture interest in the Central
North Sea License P.1211, covering Blocks 14/9a and 14/14b. It is located
approximately 12 miles north of the 639 million barrel Claymore Field,
operated by Talisman Energy, who also operate block 14/14a where oil has been
discovered immediately south of Fox's P.1211 License. The Fox blocks cover an
area of 37,065 acres off the east coast of the United Kingdom. Fox received
approval from the Secretary of State for BERR (formerly DTI) in the UK to
enable North Sea exploration. As part of their Farm-In Agreement, Fox
Petroleum maintains an option to increase it's stake from 33.33% up to 60%
after completion and appraisal of the recently acquired seismic data.

    TRACS International Ltd were engaged to prepare a competent person's
report on the Anglesey Prospect, in April of 2007. The report estimated that
the Fox license could represent total potential reserves of up to 213 million
barrels of recoverable oil. At $60 per barrel, Fox's 33.33% interest could
potentially amount to over $4 billion. (

    As per Fox's joint venture agreement, we have recently completed the
acquisition of seismic data on the areas of interest in the license. This data
is currently being processed by Fugro, who are one of the world's leading
geophysical consulting companies in the oil and gas sector. The data
processing is being done in two phases. The first is a normal processing of
the 2D data (high density), which will be followed by GeoCube processing which
converts the data into a simulated 3D format. This is currently expected to be
completed by mid October. Thereafter, we will have our in-house and JV partner
experts evaluate and interpret the data with the intent of firming up any
resulting DHI (Direct Hydrocarbon Indicators) and determining our optimum
drilling location. (

    In parallel, the Anglesey JV partners are actively firming up North Sea
rig availability to drill the prospect once identified. Thus far, we have at
least three options available to us and we will examine each in detail before
going out to formal tender. Our intention is that we would drill and test the
prospect some time mid to late 2008, subject to partners' approval and
external service providers' availability.

    Fox is also currently preparing Farm-In offers/Bid consortium
arrangements relating to a number of other North Sea prospects, and is
actively seeking relationships with other like-minded Oil and Gas industry
companies, both within the E&P sector and the services sector. These
opportunities, although strictly covered by confidentiality agreements, are
mainstream Oil and Gas exploration, appraisal and production opportunities,
which could position Fox as a prominent force in the independent sector of the
North Sea.

    "We're really pleased with how the company is progressing in the North
Sea. With members of both our management and our advisory board having so many
years of specific experience relative to the North Sea, we feel well placed to
fully develop our current and future prospects, and maximize their potential.
Coupling this with strong partners and our available financing, we are hoping
to soon join the list of successful North Sea independents." stated Alex
Craven, Vice President, Finance of Fox Petroleum.

    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 or to sign up to
receive current and breaking news from the company.

    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

    FOX PETROLEUM INC. "Alex Craven"

    Alex Craven, Vice President, Finance

    Forward-Looking Statements

    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; the future development potential of our license in the North
Sea, and other possible future North Sea opportunities; and that we hope to
define a preliminary drilling program by late 2007 in the North Sea. 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)

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