Fox Petroleum Enters Farm-In Agreement Expanding North Sea Holdings
Fox Petroleum has signed a farm-in agreement to acquire a 46% working interest on Block 211/17 South, in the UK North Sea, in a joint venture with Petrofac Energy Developments and Valiant Petroleum, a well funded privately held company. After farm-in, which is dependant on Fox drilling an exploration well on the block during 2008, the partnership ownership percentages will be; Fox Energy Exploration Ltd 46%, Petrofac 24% and Valiant 30%.
Under a separate agreement, Fox will transfer a 4.6% carried interest (10% of its acquired interest) to Aimwell Energy Ltd, in recognition of Aimwell's experience and technical support in defining and developing the prospect. The beneficial owners of Aimwell are members of the Fox Petroleum Advisory Board, but will receive no cash or stock payment, other than the carried interest.
The FIA covers the southern half of block 211/17 in the UK North Sea and comprises of 3 prospects that are believed to have a combined total potential reserve (mid case) of over 0.5 billion barrels of recoverable oil. The joint venture project provides a significant opportunity for Fox Petroleum to work amongst experienced North Sea Exploration companies, and adds roughly 24,500 acres to build upon their existing 37,000 acres in the Central North Sea. Fox's primary target for an exploration well will be the Bourbon Prospect.
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Company: Valiant Petroleum more info
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Company: Fox Petroleum Inc. more info
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