Fox Enters Purchase Agreement for 10-Well Drilling Program in Kansas

Fox Petroleum Inc. has entered into a purchase agreement for 3 lease blocks over which a 10 well drilling program is planned. The program pertains to three leases totaling 320 acres in the Geneseo-Edwards field located in Ellsworth County, Kansas. An estimate on the cost of the program pegs each well at $182,000, for a total cost of $1.82 million. Fox plans to implement the program through 2008.

Targeting the Arbuckle formation, Hodgden and Associate estimate the 10 well program will yield in excess of 50,000 barrels per well. They have estimated a reward to risk ratio at approximately 22.5 to 1.

Richard Moore, CEO stated that "This program fits in with our strategy of low risk, secure oil and gas exploration and production and sits well with our other onshore US properties. It will be instrumental in increasing both production and revenue for the company."

Alex Craven, Vice President, Finance noted, "This multi-well program should establish quick cash flow for Fox Petroleum. The Arbuckle formation program is about as low risk as can be found, with a high payoff potential. As infield development goes, there are very few programs that one could call lower risk than this. Implementation of the program should further establish Fox as a viable and serious member of the oil and gas community."