The acreage consists of four lease blocks, three of which are next to the border of the BP operated Badami unit. Fox plans to complete a technical appraisal of the acreage, with the hope of defining a minimum of one well location for drilling in the 2008 to 2009 season.
The Badami unit has proven oil reserves and is located in close proximity to the Prudhoe Bay oilfield. The Badami unit has seen production since the mid 1980s. During an 18 month timetable, BP spent more than $312 million in development on the Badami field, a reservoir estimated to contain 120 million barrels of oil.
Richard Moore, president and CEO of Fox Petroleum, said: Establishing our presence in the highly competitive North Slope region of Alaska is essential if we are to compete with the major players in the area. Fox is determined to prove that we are serious contenders in this prolific area, and our main focus will continue to be to achieve production and profitability.
