• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Fox Petroleum Inc. Announces Joint Venture With Trius Energy LLC, Hunt Oil and Lakehills Production, Inc.

Posted on: Thursday, 11 October 2007, 09:00 CDT

Fox Petroleum Inc. (OTC BB: FXPE - News) (hereafter "Fox Petroleum") is pleased to announce the signing of an agreement entering into a 22.5% joint venture interest in the Multi-Pay Gas Well called the Spears Gas Unit 2, Well #1 in the Gomez Field, Pecos County, Texas. In consideration for the 22.5% joint venture interest in the well, Fox Petroleum is paying US$500,000 to acquire 22.5% of the Trius 72.75% working interest in the Spears Gas Unit 2, Well #1.

Fox Petroleum has signed the agreement with Trius Energy LLC to partner with them, Lakehills Production, Inc and Hunt Oil among others, on the reopening of the Spears Gas Unit 2, Well #1 in the Gomez Field of Pecos County Texas, with an estimated spud of November 15th, 2007. The Spears Gas Unit neighbours a number of well known producers of Oil and Gas including Chesapeake Energy(NYSE:CHK), Chevron(NYSE:CVX) and Cimarex Energy(NYSE:XEC).

About the Spears Gas Unit 2

The Spears Gas Unit 2, Well #1 has produced over 23BCF of natural gas, which equates to US$149,500,000 at current market prices (Reference -- Trius Energy's Prospectus, September 7, 2007). According to evaluation by Trius Energy LLC, in association with Stratco Operating Co. MC, the Spears Gas Well could potentially produce 3,000 MCFGPD or greater (www.triusenergy.com), 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.

Richard Moore, CEO of Fox Petroleum states, "We are excited to be participating in this joint venture with US renowned partners who include Trius Energy and Hunt Oil. The Spears Gas 2 Unit has an impressive history of production, and is part of a well known and well understood gas producing trend that has experienced a very successful reactivation program over the last few years. We anticipate re-entry work to commence within this quarter, and look forward to the possibility of our first production well."

Alex Craven, Vice President, Finance said, "We see this as an excellent opportunity for Fox Petroleum to generate short term revenue, commence production and hopefully book reserves. Having the revenue potential to cover the investment in a matter of months makes this is a very significant venture for us. We hope to achieve the success of both our partners and neighboring oil and gas production companies."

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 Petroleum also has an operations office in Anchorage, Alaska. Fox Petroleum'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 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 OTC BB under the ticker symbol FXPE.

On behalf of the Board of Directors

FOX PETROLEUM INC.

"Alex Craven"

Alex Craven, Vice President, Finance

NASD OTC BB: FXPE

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.

Source: Business Wire

More News in this Category