Fox Petroleum Inc. has completed a license application to become the designated "Exploration Operator" for an onshore UK license. This license application includes 4 blocks which are located in the southeastern region of the United Kingdom. Fox's bid includes a work program comprising a new seismic survey (Estimated cost $500,000) with a follow up "Drill or Drop" exploration drilling program within a 3-year period.

Fox intend to operate the license but will outsource the drilling and sub surface management. Fox will retain control and direction of all activities on the exploration acreage.

Planning and execution of this operational activity will be conducted by the Fox Management and Advisory board. As part of its strategy Fox intends to engage a qualified contractor to provide license operations management, drilling and development expertise, and guidance on environmental regulations and health and safety matters.

Alex Craven, Vice President, Finance noted, "If awarded this exploration acreage we would be very pleased as it continues to show our commitment to highly prolific prospects in a stable environment - the core strategy of the company. These four blocks are located in historically proven hydrocarbon producing areas, and the license would complement our existing UK Licenses and further increase Fox's position as an exploration company in the region. Furthermore, onshore drilling will have distinct financial advantages over offshore drilling in these times of inflated rig rates."

Fox Petroleum Inc. has engaged Aimwell Energy Ltd. to conduct the technical appraisal of the sub surface potential of the blocks.

Aimwell Energy will determine the potential resources of the exploration blocks. Aimwell Energy Ltd is headed by Mike Rose and Bob Frost both of whom have extensive experience and success, most notably with Wimbledon Oil and Gas.

Mike Rose is a geologist with an excellent hydrocarbon-finding record. He specializes in prospect generation, petrophysics and project management. Mike has held a number of technical and managerial positions over a 25-year period in oilfield exploration, development and operations. He has particular experience with the UK Continental Shelf (UKCS), working for a number of companies such as Amoco, Enterprise Oil, Hardy Oil & Gas and Petrobras. Other experience includes working on projects in Holland, Italy, Australia and India. Mike is also a Non-Executive Director of Rheochem PLC.

Bob Frost is a geophysicist with an outstanding North Sea hydrocarbon-finding record. He generated the concept, prospect and mapping that led to the discovery of the Gryphon, Bruce East and Hudson fields. Specializing in prospect generation and production geophysics, he has published a number of influential papers. Bob has worked for a number of international oil companies that include: BP, Getty, Kerr McGee, Enterprise, Petrobras, Norsk Hydro, Sipetrol, Phillips, Maersk, Sun and Ranger.

Fox’s CEO Richard Moore stated, "Aimwell Energy have first class track record and bring a very specific skill set to the Fox E&P team. I am very confident Mike and Bob’s current and past achievements will go a long way in taking Fox to the next stage in the advancement and management of this exciting new set of prospects. Major oil and gas trends are not limited solely to offshore UK - look at Palmer's Wood. There are structures and sands which extend into and under the UK onshore areas too, the likes of which can be drilled and developed for production quickly."

Palmers Wood is the closest analog field to our license application with a strong presence of hydrocarbons extracted over the past 15 years. During 1991 the Palmers Wood field had a high production of 1400 BOPD, with the reserves being located within the upper Jurassic rocks of the Corallian Bed.

Tags: Fox Petroleum Inc