VANCOUVER, British Columbia, June 21, 2006 (PRIMEZONE) -- Steven Schurman, CEO, U.S. Professional Geologist, reports:
In order to address operational delays, excessive costs, and difficulty in locating qualified personnel and equipment for oil and gas field operations in the active western Canada energy sector, Running Fox (Pink Sheets:RFXRF) (TSX-V:RUN) has now completed the transaction whereby it has acquired a 100% interest in Claymore Field Services Ltd., as per the Toronto Stock Exchange-V Acquisition Approval Bulletin dated June 9, 2006.
Through this 100% owned subsidiary, Running Fox can now effectively carry out its gas pipeline tie-in, facilities construction, and servicing of natural gas wells in addition to the construction of field locations, gas plants, oil and gas battery facilities, etc., and to add revenues to Running Fox by contracting out the same services to other energy producers. Visit www.foxgold.ca for further information on Claymore.
Over the last 10 months, Claymore gross revenue was in excess of $3.6 million and due to the tax effective date of the acquisition being January 15, 2006, much of this revenue will be accretive to Running Fox's first and second quarters.
Subject to accounting adjustments and calculations, it is anticipated that approximately $1,278,000 gross revenues will be accretive to the Running Fox first quarter, ending February 28, 2006, (to be restated) and approximately $1,500,000 gross revenues will be accretive to the Running Fox second quarter, ending May 31, 2006, for a total accretive revenue to Running Fox of $2,778,000 for the first two quarters of 2006. Claymore continues to operate at full current capacity without any slowdown over the recent spring break-up.
Combining current natural gas sales and its energy sector field service revenues, Running Fox consolidated gross revenues are anticipated to grow each month, with significant profit margins, all prior to new wells being brought on stream and prior to planned organic growth.
The Company is well leveraged to natural gas prices and management believes that prices will strengthen by late summer. Additionally, Running Fox's 50% interest in the high-grade Brett Gold Project provides upside and leverage to the price of gold.
Further acquisitions and long-term cash flow developments will be announced in due course.
On behalf of the Board of Directors; Steven Schurman, CEO, U.S. Professional Geologist www.foxgold.ca
The Company relies on legislation applicable to forward looking statements, and seeks safe harbour. The TSX-V has neither approved nor disapproved of the contents of this news release.