April 3, 2000 PRESS RELEASE Trading Symbol on CDNX -- FEC
FOX COMPLETES ACQUISITION OF PRODUCING PROPERTY
Fox Energy Corporation announced that it has finalized the closing on March 31, 2000 of the purchase of a 20% interest in the Long Coulee Unit No. 2 located in southeastern Alberta for $1,500,000. The property comprises a number of producing wells, oil and gas processing facilities and water injection wells. The transaction has an effective date of November 1, 1999.
The Company's net share of daily production from the property is approximately 95 barrels of oil equivalent (BOE) per day. The project is under waterflood management designed to enhance the ultimate recovery of oil and gas reserves. The independent engineering firm of Paddock Lindstrom & Associates Ltd. has estimated the total proved plus probable reserves at 274,000 BOE for the 20% interest. Based on the Company?s internal proforma target, its working interest in the property is expected to generate $830,000 in cash flow over the next 12 months without any additional work programs. The project operator is proposing a number of recompletions of existing wells, drilling of new wells and other optimization strategies.
In the first quarter 2000, Fox participated in the drilling of five wells in other project areas resulting in one producing oil well, two cased gas wells and one dry and abandoned well. One well is currently being tested for commercial production. There are plans to tie-in the two gas wells for production after spring breakup.
The Company also reports that in respect to a news release issued on February 8, 2000 certain cash flow and production values represented corporate targets for the year.
For further information contact:
Donald R. Holding, President & C.E.O.
#1400, 444 ? 5th Avenue SW, Calgary, Alberta T2P 2T8
Telephone: (403) 265-3627 Facsimile: (403) 265-3628 Toll Free: 1-888-720-2108
E-mail: fec@foxenergy.com Website: www.foxenergy.com
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