Feb 10 2011
Fox Petroleum Inc. (PINKSHEETS: FXPT) announced today that it is creating a new subsidiary that will be focused on acquiring, developing currently producing Natural gas mineral rights located on the Fayetteville Shale.
The Fayetteville Shale, located in North-central Arkansas, is currently the second most productive shale play in the U.S. and one of the nation's 10 largest natural gas fields of any type.
"The timing this week could not be better as we have been looking at the Fayetteville Shale for some time," said William Lieberman, President of Fox Petroleum. "Chesapeake Energy just announced that due to plans to reduce its debt it intends to unload 5 billion dollars worth of its Fayetteville Shale assets in the upcoming year and we feel that the opportunities in natural gas could not be better," he added.
Chesapeake Energy owns 487,000 net acres in the Fayetteville Shale (located in Arkansas), which produces net 415 thousand cubic feet per day (MMcf/d) and has net proved reserves of 2.26 trillion cubic feet equivalents (Tcfe) and risked non-proven reserves of 7.1 Tcfe.
Fox intends a comprehensive review of current producing wells, and is looking to acquire distressed mineral rights which where owners have debt or leverage issues.
"Post 2012 natural gas prices are expected to touch around $6 per Million British Thermal Units (MMBTU), and the production from Fayetteville Shale play would show an upward trend," said the report by Dublin, Ireland-based Research and Markets. "The production in the play is expected to gradually increase, reaching 872,387.8 MMcfe by 2020."
Lieberman added, "We expect to have our first acquisition target lined up in the upcoming weeks, and we look forward to announcing the first of many acquisitions throughout the year. We have a very long term outlook on natural gas and the assets located in the Fayetteville Shale."
In addition to creating new partnerships focused on oil and natural gas assets, the company is aggressively seeking additional acquisition targets in the plastics recycling market place to increase its processing capacity and the company is currently speaking to Fortune 500 companies in the automotive and beverage industries to process plastic waste streams and fulfill circular recycling streams.
Source: http://www.foxpetro.net/