VANCOUVER, British Columbia, Jan. 18, 2006 (PRIMEZONE) -- Steven Schurman, CEO, on behalf of the Board of Directors reports:
Running Fox (TSX-V:RUN) is completing a non-brokered private placement financing for $750,000 at 50 cents for a share and a warrant, with each warrant exercisable at 65 cents for one year and 75 cents in the second year. The private placement is subject to TSX-V approval. Proceeds are to be allocated to lower risk Alberta development gas well drilling. This will augment existing cash on hand of $630,000, and ongoing revenue from monthly natural gas production.
Update on Alberta operations:
The first well in the program was successfully completed and is producing on schedule into the natural gas gathering system and thereon to the sales line at a steady 3 Mmcf per day raw plus liquid condensates, although testing confirmed rates over 5 Mmcf raw per day plus condensates. Running Fox owns a 30% gross till full payout and 15% net interest in the well after payout.
This well has confirmed an independent fault block in an area with high pressures and high remaining reserves. As a result of this successful well, the Company and its partners are reviewing further exploitation of the Pincher Creek Gas Field with a 3D seismic program, and the drilling of two horizontal wells, the re-entry of two well bores and the re-completion of two other wells. Numerous other drilling targets have been identified and are being prioritized.
Running Fox's interest is in 28 sections of the known Pincher Creek Natural Gas Field, located in Southwest Alberta, west of Lethbridge.
The Company is actively reviewing additional Alberta oil and gas opportunities, primarily in Alberta, and expects to drill further low-risk development and down-spacing wells.
For further information visit www.foxgold.ca
On behalf of the Board of Directors, Steven Schurman.
The Company relies on legislation applicable to forward looking statements.