DALLAS, Aug. 20, 2014 (GLOBE NEWSWIRE) -- Gray Fox Petroleum Corp. (OTCQB:GFOX) (herein after "Gray Fox," and/or "the Company") is pleased to provide a corporate and operational update on its West Ranch Prospect project (100% Working Interest; 82% Net Revenue Interest).
Gray Fox has engaged Dawson Geophysical Company ("Dawson Geophysical"), to undertake its Butte Valley 2D (Two Dimensional) seismic recording program.
Dawson Geophysical will manage and record approximately 22 lineal miles of 60 fold-2D seismic data on the Company's 32,723-acre West Ranch Prospect (100% Working Interest; 82% Net Revenue Interest). The prospect is comprised of 22 leases from the Bureau of Land Management in the Butte Valley Oil Play Region of north-central Nevada, located in Elko and White Pine Counties, 50 miles north of Ely, Nevada.
In order to locate specific drilling areas and commercial accumulations of oil and gas, Dawson Geophysical will place a string of six geophones every 110 feet (approximately 1,056 receiver points) over a pre-designated 22 mile area of geological interest, as defined by prior geological mapping and geophysical work. Data obtained from this string will be used in conjunction with information obtained through prior exploratory work, including geo mapping and seismic data, as well as logs obtained from the two test wells drilled to date. In addition, the Butte Valley 2D seismic recording program will allow Gray Fox to identify the area in which to conduct a 3D (Three Dimensional) program over expected fault trap locations. This 3D program will, in turn, allow the Company to pinpoint potential drilling locations.
Dawson Geophysical Company (Nasdaq:DWSN) is a leading provider of onshore seismic data acquisition services in the lower 48 states of the United States and Canada.
In addition, Gray Fox intends to acquire an additional 13.75 miles (running North-South) of 2D seismic data from seismic brokerage firm, American Geophysics Corp. This data will be used in conjunction with information obtained through prior exploratory work.
International Reservoir Technologies, Inc. (IRT)
On August 6, 2014 Gray Fox engaged International Reservoir Technologies, Inc. (IRT) to assist in the design, implementation and quality control monitoring (acquisition and processing) of the upcoming 2D seismic program. IRT will also interpret the 2D seismic data.
IRT offers a full range of services and employs experienced reservoir and production engineers, geophysicists, geologists, petrophysicists, software professionals, and contract professionals who provide advanced reservoir management solutions for all aspects of a project from seismic interpretation to integration of subsurface evaluations with surface facilities requirements or constraints.
IRT's client base includes British Petroleum (BP), Questar, Oxy and Kuwait Oil Company (KOC) and it is currently involved in reservoir management projects and integrated studies on some of the world's largest oil fields, and some of the most promising exploration and development areas. These include the Prudhoe Bay Field and Endicott Field in Alaska, the Akal Field (Cantarell Complex) of Mexico, the Berkine Basin of Algeria, North Kuwait, Bahrain, and the Cupiagua/Cusiana Fields of Colombia.
This engagement is a significant step forward for the Company in implementing its 8-phase exploration plan designed to systematically reduce risk and optimize selection of one or more new drilling targets.
Appointment of CFO
On May 29, Gray Fox appointed Randall Newton to the position of Chief Financial Officer (CFO).
Mr. Newton is the managing member of Newton Collaboration, LLC, a consulting firm he founded in 2002. Newton Collaboration, LLC provides SEC financial and reporting services to small cap companies. Prior to this, Mr. Newton was the divisional controller for Nabors Drilling and oversaw the company's statutory financial reporting. Prior to that, Mr. Newton spent five years in Russia working for three oil and gas joint ventures. While in Russia, he served as the chief financial officer of Permtex JV, a Snyder Oil joint venture. He also developed natural gas resources in Russia for Northgas JV, a Bechtel Energy Resources joint venture, and worked for White Nights Joint Venture, a project of Occidental Petroleum Corporation.
Mr. Newton has a Bachelor's of Business Administration from the University of Texas at San Antonio and is a certified public accountant.
Lease Amendment
On July 1, Gray Fox implemented an amendment to its Lease Purchase Agreement, originally dated July 5, 2013, between the Company and FFMJ, LLC, a Nevada Limited Liability Company. Under the original lease agreement, Gray Fox agreed to drill a test well at a depth of 6,000 feet, with a surface and bottom hole location, on the leases for the purpose of hydrocarbon exploration and production, on or before July 5, 2015.
Under the new amendment, Gray Fox has agreed to drill a test well with a surface and bottom-hole location on the leases for the purpose of hydrocarbon exploration and production. The well must achieve a depth of 6,000 feet, or as otherwise agreed to by the parties in writing. The Company also agreed to file an application for permit to drill and pay the requisite bond with United States Bureau of Land Management (BLM) on or before July 5, 2015 and that it will commence drilling with a rig capable of total on or before November 5, 2015.
This amendment is highly beneficial to the Company's exploration plan in that it allows additional time for Gray Fox's technical team to utilize information obtained through prior exploratory work, including geo mapping and seismic data, to locate specific drilling areas and commercial accumulations of oil and gas on the West Ranch Prospect.
Additional Leases
Gray Fox has filed an Expression of Interest with the BLM for a total of 20,079 acres in leases surrounding its current landholding in the Butte Valley Oil Play Region of north-central Nevada, located in Elko and White Pine Counties, 50 miles north of Ely, Nevada. The Company will provide updates in relation to these leases accordingly.
Lawrence Pemble, CEO and President of Gray Fox, commented: "It has been an extremely productive period for the Company, highlighted by the addition of Dawson Geophysical and IRT to its exploration program."
"Gray Fox has recorded rapid progress in relation to its exploration program, and coupled with the addition of Randall Newton to the corporate team, the Company has been able to streamline its efforts to provide maximum shareholder value. The West Ranch Prospect project continues to move forward at an impressive rate and management remains focused on one day bringing this project to production."
FOR ADDITIONAL INFORMATION
Read more about the West Ranch Prospect, and additional information about the Company and its latest press releases, at Gray Fox's corporate website: http://www.grayfoxpetro.com.
ABOUT GRAY FOX:
Gray Fox Petroleum Corp. (OTCQB:GFOX) is a domestic oil and gas exploration and development company, which is focused on expanding the 135+ year tradition of Western U.S. energy production by engaging in the acquisition and exploration of oil and natural gas properties in the Western U.S. The Company implements this business focus by pursuing interests in oil and natural gas properties through strategic lease acquisition activities.
This press release contains statements that are forward-looking and which involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements in question are based on Gray Fox's current expectations and projections about future events, based on information currently available. The forward-looking statements found in this press release may also include statements relating to Gray Fox's anticipated financial performance, business prospects, new developments, strategies, and similar matters. Gray Fox provides no assurance regarding the actual outcome of the events contemplated by any forward-looking statements included in this release. Gray Fox disclaims any obligation to update any of its forward-looking statements, except as may be required by law.
Cautionary Note to U.S. Investors
The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as resource potential, reserve potential, probable resources, possible resources, contingent resources, prospective resources, exploration target size, measured resources, indicated resources, and inferred resources. The SEC guidelines strictly prohibit us from including these terms in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K, which may either be secured from us or from our website at http://www.grayfoxpetro.com.