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Fox Petroleum Provides Progress Report for Spears Gas Unit 2, in Pecos County, Texas

Posted on: Wednesday, 5 December 2007, 09:00 CST

Fox Petroleum Inc. (OCTBB:FXPE) is pleased to provide an overview of it's current operations and developments in the Gomez Field, in Pecos County Texas.

Drilling activities commenced ahead of schedule on November 1st, for the reworking of the Spears Gas Unit 2, Well #1. The area has been set, and all of the necessary equipment has been brought to location in order to re-complete the deep development well.

Fox Petroleum is pleased to announce that workover activities are reaching the final stages in anticipation of production. With operations beginning ahead of schedule, the operator has taken additional measures to ensure an exhaustive and comprehensive technical assessment of all aspects of the downhole conditions.

The operator has been able to move forward with confidence having confirmed our downhole situation and position, utilizing the original logs which have been calibrated and correlated to data from current downhole operations. Right now we are completing the extraction of the original tubing, milling through packers and thoroughly cleaning up the hole in anticipation and preparation for a smooth production completion when we reach target depth later this month.

The reworking of the Spears Gas Unit 2, Well #1 represents Fox Petroleum's inaugural exploration program. The team continues to make excellent progress on the project and the completion of reworking operations is expected to take place in the next 2-3 weeks.

With the potential for production before the end of the year, Fox Petroleum is looking forward to implementing an aggressive exploration program for the year 2008 with significant income streams in the short term, and the opportunity for additional projects in the area.

"This is a very exciting period for Fox Petroleum, as we begin the transition to the production stage of our operations; the value the company possesses has never been greater. Along with other major acquisitions that Fox has made in recent weeks, the Spears Gas Unit has provided an excellent opportunity for us to demonstrate the low risk, high return mentality that Fox encompasses" states Fox Petroleum's CEO Richard Moore.

The company will be providing additional information and updates as they are made available.

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 a 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 neighbors a number of leading world producers of Oil and Gas including Chesapeake Energy, Chevron, and Cimarex Energy.

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 is currently 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.

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 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). Fox has a 22.5% interest in JV of an onshore Texan gas well, and has also signed agreements to acquire roughly 14,000 acres on the North Slope and approximately 42,000 of land onshore in the Cook Inlet containing the Catcher's Mitt Prospect. 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, 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; 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; we will be granted rights to explore the all acreage from the relative governing bodies; the 211/17 south block is estimated to have a potential of over 500 million barrels of oil; the Bourbon prospect has potential of 167 mmbo; the Liassic/Triassic Statfjord, and the Triassic Cormorant sandstone total possible reserve of 30 mmbo; the Upper Jurassic Magnus, and the Ptarmigan sandstones, represent an additional total potential of 278 and 45 mmbo; Fox may be able to tie into existing infrastructure; an exploration well is planned on 211/17 South for 2008; Fox will be able to define a well location on the 9,000 acres and drill a well in the 2008-2009 season.

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, the 211/17 South JV, the Cook Inlet and North Slope lease acquisitions, and our ability to participate in the exploration of, and successful completion of development programs on all aforementioned prospects and leases. 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.

http://www.foxpetro.com

Source: Business Wire

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