Fox Petroleum Completes North Slope Acquisition
Fox Petroleum has successfully completed the acquisition of approximately 32,000 acres of prime land in Alaska's North Slope region in and near Prudhoe Bay.
Alaska's North Slope area is a prolific basin with 23 producing hydrocarbon fields that produce 16% of the domestic oil supply for the US, at a rate of over 800,000 barrels of oil per day. Prudhoe Bay, which adjoins the majority of Fox's leases, is the largest oil field in North America at over 200,000 acres, and with roughly 1,100 active well sites. Operated by BP, it has produced over 10 billion barrels of oil equivalent to date, and averages production in excess of 400,000 barrels of oil per day.
East Prudhoe Bay Prospect
The larger of Fox's two parcels of land, the East Prudhoe Bay Prospect, represents 26,789 acres of contiguous land in close proximity to major players such as Exxon Mobil, BP, Chevron and ConocoPhillips.
The area's hydrocarbon prospectivity is highly encouraging based on the production of two analog wells - the Delta State 2 Well producing oil within the Fox lease block, and Amoco's Foggy Island Bay State 1 Well producing oil and gas, which lies approximately one-half mile to the east of Fox's property.
Arco Pipeline Prospect
The Arco Pipeline prospect is a 5,701-acre parcel of land located near the key existing transportation infrastructure of the Trans Alaskan Pipeline and Alaska's all-weather Dalton highway. The Pipeline State 1 Well is located in the southeast corner of the Arco Pipeline Prospect, and has recorded oil and gas shows at three separate intervals between 7,800 and 10,400 feet. Fox's prospect is neighboured by ENI, Italy's largest energy company.
Report & Potential Reserves
Fox Petroleum engaged LAPP Resources, Inc. to prepare a geological report on the Alaska North Slope leases. Based on well production within and around Fox's Alaskan acreage, the April 2007 LAPP report estimated the leases could potentially represent up to 160 million barrels of oil or $9.92 billion at $62/barrel.
Fox is currently conducting a technical work program using the existing surface and sub-surface data from the region to facilitate a better understanding of its hydrocarbon potential. It is anticipated that the data analysis period will take 60 to 90 days. Fox expects to define several test well targets, which would hopefully be drilled in a timely manner commencing in the first part of 2008.
"Formal conclusion of this acquisition is an extremely important step forward for Fox, and we look forward to completing the technical work already underway with the focus on seeing these prospects fully appraised and drilled in the near future." says CEO, Richard Moore.
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