Fox Petroleum Inc announced that it has now completed the purchase of the 3 Kansas leases and has secured the services of AA Drilling of Wichita, Kansas. AA Drilling will drill Fox's proposed development project in the Geneseo-Edwards Field located in Ellsworth County. The ten-well drilling program is set to commence in August 2008 with the potential for up to four more wells to be added in the future.
The new contract replaces a previous contract with a different contractor who would have set the drilling schedule back to December 2008. Through AA Drilling, Fox has secured the use of the National T12 rig, which comes with a 12-man staff and will be operating 24 hours a day. The rig has been officially secured for August 12, 2008.
Richard Moore, Fox's Chief Executive Officer said, "We are pleased to have secured a drilling rig ahead of schedule. Commencing drilling operations in August puts Fox in a position to exceed it's deadlines and will shorten the amount of time before Fox can potentially produce the 7,000 barrels per month projection that was recently approved by Ryder Scott for our ten-well program."
On the location, other parts of the drilling operation have been secured. The site's surveyor has confirmed that the first of ten wells and leases will be staked by the end of July, 2008. Filing the registration of properties belonging to Fox Petroleum with Ellsworth County's Courthouse is expected to be concluded within 48 hours. Furthermore, Fox is currently filing intent to drill with the Kansas Corporation Commission (K.C.C.), which is also hoped to be completed within a matter of days.
Fox's Chief Operating Officer, William MacNee, is currently in the field near the well locations securing well-site, distribution, processing and storage equipment for Fox's drilling program. Fox is presently awaiting rates from three different companies looking to buy the oil from the properties upon completion.
William MacNee, said, "This contract with AA Drilling will move our drilling schedule forward into the summer. The fortuitous signing of the new contract is beneficial to Fox and its shareholders in both financial savings, timing and should bring cash-flow in sooner than originally anticipated."
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