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 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, 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 Bourbon prospect, which will be Fox’s primary target for exploration, is estimated to have a total potential reserve (mid case) of 167 million barrels of recoverable oil. The prospect is located in a geological structure of the North Sea known as the Brent Sandstone in the southern part of block 211/17.

Richard Moore, CEO of Fox Petroleum, said: We are very excited to be part of what we consider to be as good as any prospect in the North Sea, and the size of the project will help promote Fox as one the larger players in the region.