VANCOUVER, Nov. 24, 2005 (PRIMEZONE) -- Steven Schurman, CEO, on behalf of the Board of Directors reports that Running Fox Resource Corp. is pleased to announce the latest results from the farm-in Pincher Creek horizontal development well. Production rates of over 5 mmscf/d of raw production were achieved during the test period. In the opinion of the operator, after testing the well over a sustained period, the long-term raw gas deliverability is approximately 3 mmscf/d without compression. The flowing pressure during testing was 320 psig at the wellhead. In addition, the liquids yield varied between 10 and 30 barrels per million of raw gas during the test period. This represents between 30 and 90 barrels per day of condensate rich liquids. The net sales gas is calculated after taking 30% shrinkage on the gas due to the effects of CO2, H2S and liquids.
The remaining potential resource in place was estimated by the well operator at 30 to 45 billion cubic feet of raw gas based on down-hole pressure data (this is an internal potential estimate, not done by an independent engineer). The well will be shut in for a final build-up in preparation for a year-end reserve report.
This well has confirmed an independent fault block in an area with high pressures and high remaining reserves. This will reduce unit operating costs in the area and is also indicative of the under-exploited nature of this pool. As a result of this successful well, the well operator has plans for the further exploitation of the Pincher Creek Unit with the conduct of a 3D seismic program, the drilling of two horizontal wells, the re-entry of two well bores and the re-completion of two other wells.
Running Fox participated for 30% gross before payout and 15% net after payout on the initial test well Section. Following this, the company has the option to purchase an existing producing well bore on the same section, as well as earn a similar interest in 27 further Sections of the Pincher Creek Natural Gas Field, located in Southwest Alberta, west of Lethbridge.
The company will be discussing additional Pincher Creek opportunities with its partners.
On behalf of the Board of Directors Steven Schurman Running Fox Resources
The Company relies on legislation applicable to forward looking statements. We seek safe harbour.