Fox Petroleum Making ‘Strong Progress’ According To SISM Research
NEW YORK–(BUSINESS WIRE)–Ernest C. Schlotter, a senior analyst with SISM Research and a StarMine four-star analyst, notes the following regarding Fox Petroleum Inc.’s (OTCBB: FXPT) corporate activities:
Initial Comments:
“Fox Petroleum is making strong progress. Fox’s Bourbon prospect is estimated to have a prospective resource P50 (mid-case) of 94.2 million barrels of oil and an estimated recovery rate of forty-two percent, according to Aimwell Energy Ltd.”
5 for 1 Reverse Split and AMEX listing:
“The Company approved a 5 for 1 reverse stock split with a record date of April 16, 2008 to meet the listing standards of the American Stock Exchange. Subsequently, the stock symbol has been changed from FXPE to FXPT. Currently, the Company has 14,968,246 shares of common stock issued and outstanding. There is no assurance that the Company will meet the listing standards of AMEX, or that its securities will ever list on the AMEX exchange. In our view, the listing of Fox Petroleum’s common stock on AMEX will enhance shareholder liquidity and value as well as being the next step in the Company’s growth. Further to that, it is hoped to promote price stability, facilitate access to further capital from institutional investors and expedite the company’s growth.”
Operations Update:
“Fox Petroleum’s main focus is to achieve production and profitability in the near future. Just a few days ago, the Company announced that it had booked a drilling rig to drill its first well on the Bourbon prospect in the fourth quarter of 2008. The Bourbon Prospect is believed to be one of the lowest risk prospects remaining in the North Sea. Fox will pay 89% of the costs to drill a well to 10,300 feet to earn forty-six percent of the project. This prospect is estimated to have a total potential reserve P50 (mid-case) of 94.2 million barrels of oil and an estimated recoverable rate of forty-two percent. If successful, our heavily risked adjusted reserve potential for Fox Petroleum is valued at approx. US$182 million or approx. $12 per share.
“The Bourbon Prospect is located in a geological structure of the North Sea known as the Brent Sandstone in the southern part of block 211/17. The Brent Sandstone consists of tilted fault blocks that are favorable for trapping hydrocarbon deposits and is believed to be one of the lowest risk exploration styles in the North Sea. Royal Dutch Shell is the most active producer in close proximity to the Bourbon Prospect, as it owns and operates many producing fields in the area, including the Eider Field (211/16a & 211/21a), and the Magnus Field (211/12a), which have a potential reserve of 1.65 billion barrels. Other well established companies producing in the area include BP, Lundin Petroleum AB, Nexen Inc, and ConocoPhillips.”
Valuation:
“We have kept our Company valuation unchanged and have applied the same valuation parameters we have been used in our last report, dated March 3rd, 2008. We have calculated Fox Petroleum’s heavily risk-adjusted Appraised Net Worth to be $36.65/share, (reverse split adjusted) and our risk factors account for execution uncertainty, uncertainty about availability of capital as well as capital costs, and uncertainty as to the actual resource to be developed. We maintain our Speculative Buy/4 rating for Fox Petroleum and have arrived at a 12 to 18-month target price of $27.50, based on a twenty-five percent discount to our heavily risked Appraised Net Worth of $36.65.”
Fox Petroleum is a small, early-stage oil and gas company engaged in the exploration and production of oil and natural gas in Alaska, Texas, Kansas, and the North Sea in the UK. Complete information about this company is available at the company’s InvestorPower™ page accessible from http://www.investrend.com/company/list.asp?sPathParam=yes , and the company’s website is at http://www.foxpetro.com.
Anyone interested in receiving alerts regarding Fox Petroleum research should email contact@investrend.com or info@sism.com with “FXPT” in the subject line.
SISM Research, based in Zurich, Switzerland, is a private investment research firm offering high-quality, independent, fundamental research on public companies since 1995. SISM Research writes, publishes and distributes research coverage on micro- to small-cap public companies trading on the OTC, NASDAQ and AMEX.
SISM Research is being paid $1,750 per month by the company over a two-year period solely to ensure analyst coverage. SISM Research takes steps to ensure independence including setting fees in advance and utilizing analysts who must abide by CFA Institute Code of Ethics and Standards of Professional Conduct. Additionally, analysts may not trade in any security under coverage.
The Investrend Research Syndicate distributes reports published by sources dedicated to unbiased, reliable analytics and complete transparency. The primary measure for determining those sources is the “Standards for Independent Research Providers” (http://www.firstresearchconsortium.com/standards.html). The Investrend Research Syndicate is a proprietary entity of Investrend Communications, Inc., a financial intelligence and information firm, serving the financial community with neutral platforms and fundamentally-based material since 1996.
Please note that statements in this announcement that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as “expects,” “intends,” “plans,” “may,” “could,” “should,” “anticipates,” “likely,” “believes” and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results.