Fox Petroleum Inc. is pleased to announce that it has signed an agreement to acquire approximately 9,000 acres of prime land to the west of the prolific Badami Unit on Alaska's North Slope, adding to the sizeable acreage already leased by Fox.
Fox will gain a 100% working interest on the leases. The acreage consists of four lease blocks, three of which are contiguous to the border of the BP operated Badami unit. Fox plans to complete a technical appraisal of the acreage, with the hope of defining a minimum of one well location for drilling in the 2008-2009 season.
The Badami unit has proven oil reserves, and is located in close proximity to the Prudhoe Bay oilfield, which is known to be the largest oil and gas discovery in North America. The Badami unit has seen production since the mid 1980s. During an aggressive 18-month timetable, British Petroleum spent more than $312 million in development on the Badami field, a reservoir estimated to contain 120 million barrels of oil. BP recorded peak production on the Badami Field of more than 18,000 barrels of oil per day during the late 1990s. Badami contains a complete existing transportation infrastructure system, and would be critical in the development of any discovery.
The surrounding areas are considered highly productive, and contain known fields such as the Point Thomson Unit, which was originally leased by operator ExxonMobil and partners Chevron and BP. It is the second largest oil field after Prudhoe Bay. The unit contains significant oil reserves, but the real potential lies in the gas reserves that are considered to be in the range of 9 trillion cubic feet of natural gas (Source: New York Times). These estimates account for more than a quarter of the known natural gas in all North Slope fields.
"Fox is determined to prove that we are serious contenders in this prolific area, and our main focus will continue to be to achieve production and profitability," Richard Moore, president and CEO of Fox Petroleum, said.
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