Third-Party Report: Fox 'Significantly Undervalued'

Fox Petroleum Inc. has received positive feedback in a new third-party analyst report released on Tuesday by SISM Research & Investment Services. Authored by analyst Ernest C. Schlotter, the report ran under the title "We Believe Fox Is Currently Significantly Undervalued."

"Despite encouraging fundamental improvements within the Company as well as record high oil prices, the stock of the Company came heavily under sell pressure and currently trades at $0.87, which is only 0.12 times our calculated heavily risked-adjusted Appraised Net Worth of $7.33 per share," wrote Schlotter. "Despite a sharp price correction during the last four months we maintain our Speculative Buy/4 rating for Fox Petroleum and have arrived at a 12 to 18-month target price of $5.50, based on a 25% discount to our heavily risked Appraised Net Worth of $7.33."

In line with Schlotter's statements, the price of oil hit another record high yesterday, with crude oil for April delivery rising $4.89, or 4.9 percent, to $104.41 a barrel at close. The inflation-adjusted price of oil surpassed the 1981 record of $92.50 in today's dollars in October of 2007.

Richard Moore, Chief Executive Officer, responded by saying, "With yesterday's surge to a record high in the price of oil, we are pleased with the timeliness of the SISM report. We were previously aware of the sell-side pressure on our price, but were pleasantly surprised at the outside acknowledgement of our significant under valuation. The 12-month forecast by Mr. Schlotter gives us a positive goal that we feel is attainable with the 2008 program we have in place."


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