UK North Sea Oil Find in Close Proximity to Fox Petroleum’s 211/17 Bourbon Prospect
Fox Petroleum Inc (OTCBB:FXPT) is pleased to have received news of the announcement by Dana Petroleum PLC of the discovery of the East Rinnes Oil Field in Block 210/24a in the UK Northern North Sea. The discovery is roughly only 15 miles from Fox Petroleum’s Block 211/17 Bourbon Prospect.
“We are pleased to see the new information pertaining to oil discoveries near our Block 211/17 Bourbon Prospect,” said Fox CEO Richard Moore. “While we continue to assess our property and analyze the results of third-party reports, the Bourbon Prospect’s future becomes clearer. So far the results we’ve seen have been positive.”
Dana Petroleum has reported that the East Rinnes discovery well, 210/24a-11z, was drilled to a total measured depth of 6,935 feet (6,144 feet true vertical depth subsea) and encountered a full Brent reservoir sequence. Early analysis asserts that the East Rinnes oil is similar to the high quality crude discovered at West Rinnes which flowed at an equipment-restricted rate of 7,800 barrels per day (bopd), and to that being produced by Dana at the nearby Hudson oil field. The East Rinnes well encountered excellent quality sands in the Lower Brent reservoir with the Upper Brent less well developed.
The latest Dana discovery adds to other recent discoveries in the area such as Causeway and Kerloch in block 211/22, which adjoins 211/17 immediately to the south.
Recent wells drilled on Causeway include:
211/23d-17Z: tested 14,500 bopd from the Brent formations
211/22a-6: tested 6,300 bopd from the Brent formations
211/22a-7A: not tested but similar rates are expected to those measured in 22a-6 (6000 – 7000 bopd)
In addition, other wells on Antrim’s Causeway structure have tested 8,100 bopd (suspended in 1992) and 5,500 bopd (abandoned in 1984). Cumulative test rates from the structure now exceed 35,000 bopd with an expected additional 6000 – 7000 bopd from the untested 22a-7A well. Antrim’s next step is expected to be the submission of a Field Development Plan (FDP) to the UK authorities, complete the Causeway development drilling in 2008 and start production facility construction on approval of the FDP, also expected in 2008.
The Dana operated Kerloch well, 211/22a-10 was drilled to a total depth (TD) of 12,282 feet in December 2007 and encountered a full Brent reservoir sequence, as predicted prior to drilling. The top of the Brent sandstone section came in approximately 60 feet high to prognosis. The well discovered an oil column of some 116 feet in the Ness Formation and a number of oil samples were taken. The crude oil gravity is around 32 degrees API with a gas-oil ratio in line with other discoveries in the area. The Kerloch well was designed as a slim-hole finder well with a long open hole section being drilled to TD. Given the successful gathering of comprehensive data, including cores, wireline logs, reservoir pressure measurements and fluid samples, the joint-venture group decided not to carry out a drill stem test in this well as there have been a considerable number of tests of the Brent sands in neighbouring wells in the area, including the Causeway wells.
Fox Petroleum, through its wholly-owned UK subsidiary, Fox Energy Exploration Limited, has a farm-in agreement with Valiant Petroleum Limited and Petrofac Energy Developments Limited on License P1455 pertaining to the 211/17 South block, adjacent to Dana and Antrim’s Block 211/22. Under the agreement, Fox will be entitled to a 46% share in the southern section of 211/17 block by paying 89% of the cost of drilling a well on the structure which should commence before December 31, 2008. A letter of commitment has been signed with Senergy Drilling Services, an international rig operating company, to utilise the Byford Dolphin rig for up to a 22-day slot in November of 2008.
“These three significant discoveries in such close proximity to our Bourbon Prospect show further evidence of the potential we’re looking forward to tapping on our Block,” added Richard Moore. “By year end, we should have results of our own to announce regarding the further development of the proposed Bourbon field.”
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 Independent Oil and Gas Exploration and Production Company headquartered in London, England, the financial capital of Europe, with a further operations office in Anchorage, Alaska. Fox is focused on exploration and production in the USA (Alaska’s North Slope and Cook Inlet, Texas and Kansas), and also on the UK’s North Sea. The Company’s shares are publicly traded on the NASD OTC BB under the ticker symbol FXPT.
On behalf of the Board of Directors
FOX PETROLEUM INC.
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 in this press release include that we are very optimistic for our appraisal well later this year; drilling a well on the structure which should commence before December 31, 200; that Senergy Drilling Services will utilize the Byford Dolphin rig for up to a 22 day slot in November of 2008; and that the proximity of the Dana discovery is positive for our project. .
Actual results may differ materially from those currently anticipated due to a number of factors. 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 that successful discoveries in the region of our property are not necessarily an indicator that we will have the same success. Other factors 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, 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.
This press release contains information about adjacent properties on which we have no right to explore. We advise U.S. investors that the United States Securities and Exchange Commission’s oil and gas guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that the oil and gas deposits on adjacent properties are not indicative of oil and gas deposits on our properties.
Cautionary Note to U.S. Investors
The United States Securities and Exchange Commission (“SEC”) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this news release, such as ” recoverable reserve potential” and “reserves of natural gas” that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our annual report on Form 10-KSB and quarterly reports on Form 10-QSB available from us or the SEC.”