Gray Fox Petroleum Corp. Engages Technical Advisor and Completes Phase II of Prospect Assessment

DALLAS, April 25, 2014 (GLOBE NEWSWIRE) -- Gray Fox Petroleum Corp. (OTCBB:GFOX) (herein after "Gray Fox," and/or "the Company") is pleased to announce it has engaged Gaffney, Cline & Associates (GCA) as Technical Advisor, furthermore the company wishes to also announce GCA's completion of Phase II on the Prospect Assessment of the company's flagship West Ranch Prospect project. GCA is a worldwide petroleum consultancy with over 50 years' experience in providing independent technical, commercial and strategic solutions to international oil and gas companies, national oil companies, governments, financial institutions and the petroleum service and support sectors.

Appointment of GCA as Technical Advisor

Gray Fox has engaged Gaffney, Cline & Associates (GCA) as Technical Advisor to its flagship West Ranch Prospect project. GCA will offer technical assistance in designing and monitoring exploration and future development activities, planning and organizing data, interfacing with Gray Fox staff and contract personnel, and to participate as a technical advisor in meetings. To that end, GCA's engagement is structured into multi-phase activities operating in parallel - an outline of the proposed phases follow:

• Phase 1 – West Ranch Asset (WRA) Exploration Strategy – Scoping Economics
• Phase 2 – Initial Working Scope (Data management)
• Phase 3 – West Ranch Asset Exploration Planning & Operations
• Phase 4 – Field Development planning
• Other Work Scoping (as below):

GCA will be Gray Fox's Technical Advisor for any related issues that may arise. These issues may include, but not be limited to; recommendations on operations, reviewing new regulations, recommendations on facilities and production infrastructure, analysis of CAPEX/OPEX expenditures, new ventures and other exploration/development activities.

Completion of Prospect Assessment

GCA has completed Phase II of the "Assessment of the West Ranch Acreage (WRA) Elko and White Pine Counties Nevada" – an overview of the oil and gas exploration potential of the Company's West Ranch Prospect. The prospect is comprised of 22 Federal leases over 32,723 acres in the Butte Valley Oil Play Region of north-central Nevada, located in Elko and White Pine Counties, 50 miles north of Ely, NV.

GCA prepared a Phase I report in February 2014 consisting of a review of data available from both Gray Fox and public sources, prior to commencing the analysis that is contained in its Phase II report. Phase II consisted of an independent technical due diligence report to help assess the oil and gas potential for the West Ranch Prospect.

The Assessment was based on data made available by Gray Fox, public domain data, the Marlin Federal 1-4 and 1-5 wells (Federal 1-4 and 1-5 wells) on the West Ranch Prospect and Grant Canyon -1, -3 and -4 and Blackburn-10, -14 and -16 wells, located approximately 110 miles and 60 miles, respectively, from the prospect.

It concludes the Guilmette carbonate, the most prolific reservoir in the Railroad and Pine Valleys fields and accountable for ~87% of Nevada's total production is considered the main target objective in the West Ranch Prospect. It highlighted that although it was not penetrated in the Federal 1-4 and 1-5 wells, it is present in outcrops within the prospect.

GCA adds that three structural highs (Lead A, Lead B, Lead C) have been identified by the most recent residual gravity data within the WRA, the data also shows a large residual gravity high outside the WRA (Upside Lead) - this anomaly is mapped and linked to Lead B, in the residual gravity map, although in GCA opinion it could be fault separated - Gray Fox has expressed its interest in this area for lease.

GCA's approach to developing a conceptual structural model in the WRA area was based on field analogs in the Eastern Great Basin (EGB), published surface geological maps and the newest residual gravity data and the seismic line acquired by Gray Fox.

Thermal maturity data in the Federal 1-4 and 1-5 well and regional data in the Butte Valley indicate that West Ranch Acreage is gas-to-wet gas prone with a less-likely case for oil.

The results of this model are tabulated below:

Table 1 – Unrisked Most Likely Case-Gas
Estimated Unrisked Prospective Resources
Original Gas In Place (OGIP) and Estimated Ultimate Recovery Gas (EUR gas)
As of April 25, 2014

Results of Probabilistic Monte Carlo Simulation

GCOS: Geological Chance of Success – this is the estimated chance of finding hydrocarbons in each formation and each lead.

Notes:

(1) Prospective Resources provide an unrisked estimate of volumes that might be recoverable from the leads based on the range of estimated undiscovered petroleum initially in place (UPIIP). There is no certainty that any portion of the resources referred to in the table above will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of these resources.

GCA analysis resulted in a Less Likely Oil Case with the following results

Table 2 – Unrisked Less Likely Case- Oil
Estimated Unrisked Prospective Resources
Original Oil In Place (OIIP) and Estimated Ultimate Recovery of Oil (EUR Oil)
As of April 25, 2014

Results of Probabilistic Monte Carlo Simulation

GCOS: Geological Chance of Success – this is the estimated chance of finding hydrocarbons in each formation and each lead.

Notes:

(1) Prospective Resources provide an unrisked estimate of volumes that might be recoverable from the leads based on the range of estimated undiscovered petroleum initially in place (UPIIP). There is no certainty that any portion of the resources referred to in the table above will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of these resources.

Further to the release dated 9 December 2013, Gray Fox is currently in the third phase of an 8-phase exploration plan designed to systematically reduce risk and optimize selection of one or more new drilling targets.

The remaining phases of exploration involve further acquisition of seismic data, the commencement of a well permitting process and the outlining of an effective drilling strategy. GCA noted that Gray Fox plans to acquire a seismic program is reasonable and could result in a drillable location(s).

GCA's Phase II report made a number of recommendations including the acquisition of close spacing 2D high resolution seismic over the residual gravity leads, drilling of an exploration well to the Guilmette in the shallowest structure to maximize the finding of liquids and in the event the Chainman sandstone is oil-bearing that Gray Fox considers the viability of fracking.

Lawrence Pemble, CEO and President of Gray Fox Petroleum Corp., commented: "I am extremely pleased with the addition of GCA to the Company's technical team, as well as the outcome of this assessment. To have a globally recognized independent agency such as GCA involved in this project represents a significant step forward for Gray Fox Petroleum.

"Management will use this data as it moves towards the fourth phase of the Company's exploration program – the further acquisition and conducting of seismic. This assessment is critical to not only outlining the potential of the West Ranch Prospect, but also provides Gray Fox present and future shareholders with a clear understanding of the prospect's potential."

FOR ADDITIONAL INFORMATION

Read more about the Company and the Gaffney, Cline & Associates Assessment of the West Ranch Acreage on Gray Fox's corporate website: http://www.grayfoxpetro.com.

ABOUT GRAY FOX:

Gray Fox Petroleum Corp. (OTCBB: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 United States of America. 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 Petroleum Corp'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 Petroleum Corp's anticipated financial performance, business prospects, new developments, strategies, and similar matters. Gray Fox Petroleum Corp. provides no assurance regarding the actual outcome of the events contemplated by any forward-looking statements included in this release. Gray Fox Petroleum Corp. 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.