Subject: New Alberta Fernie Formation Black Shale Natural Gas Play
(Thomson Reuters ONE) - RUNNING FOX RESOURCE CORP.TSX-V "RUN" OTC "RFXRF" Frankfurt "C8Q"Subject: New Alberta Fernie Formation Black Shale Natural Gas PlayThursday October 8, 2009, Steven Schurman, CEO, US Prof. Geologist,Director, reports:Further to the Company's news release of July 30, 2009, a new blackshale, natural gas production opportunity appears to be developing insouthwest Alberta where Running Fox has an interest in the 28 squaremile Pincher Creek Natural Gas Project. Similar to many sedimentarybasins in the United States with black shale that are currentlyexperiencing extensive exploration drilling for natural gas, it hasbeen recognized that the Jurassic-age Fernie Group in Alberta alsocontains thick sequences of highly organic, shale, natural gassource rock.Since 2005, Running Fox has participated in the development of thePincher Creek project and since that time has been producing naturalgas and condensates. Over the years, the Pincher Creek project hasyielded average revenue of $1 million per year to Running Fox'sinterest from a conventional gas zone in the Livingston Formation.As with the U.S. black shale projects, the Fernie Group shale inAlberta is not only the source of the natural gas but also acts asthe reservoir rock for the natural gas. The presence of natural gasin shale formations has been known for many years but only in thepast decade have gas well completion techniques been developed thatcan successfully recover the natural gas from "tight" shaleformations in commercial quantities.Shales are tight, and gas typically flows through fractures, andadditional manmade frac operations can open new fractures in somecases over 2,000 ft from the well bore, as noted by global oilfieldservices giant Schlumberger Ltd.Some new technological advances for shale development are:* 3-D seismic in determining lateral length and placement;* Multilaterals (drilling several laterals from a single well pad);* Multiple frac stages within a lateral;* Real-time microseismic monitoring to image hydraulic-fracture treatments;* Simul-fracs (simultaneous hydraulic fracturing of offset parallel horizontal wells about 1,000 feet apart);* Seismic technology is playing an increasing role in shale gas appraisal and development.Generally, the industry has been driven by technological advances inhorizontal drilling and fracture stimulation techniques.In the U.S., some of the best known black shale natural gas producingformations include the Barnett Shale, New Albany and Bakkenformations where gas resources can be up to 100 Bcf per section. Therecognition that black shale is also present in the Canadiansedimentary basins has sparked strong interest in exploring Canadianshale formations such as the Fernie Group.Importantly, Shell Canada Ltd (Royal Dutch Shell) acquired DuvernayOil Corp which had a large block of land covering the Alberta MontneyShale in a deal worth $5.9 billion in cash and debt.In the Pincher Creek project area, the Fernie Group shale is from 300to 500 feet in thickness and when the initial Pincher Creek discoverywell was drilled in 2005 it was noted that there were numerous stronggas kicks and anomalies detected as the well logging tools passedthrough the Fernie Group shale. In 2005 the Fernie Group shale gasanomalies were an interesting natural gas occurrence but recent shalefracturing and well completion techniques developed in the U.S. shalegas plays suggest that the gas anomalies found in the Fernie Group inthe Pincher Creek project area may also be a strong candidate foreconomic gas development.Running Fox is now evaluating the extent of the Fernie Group shale inthe Pincher Creek project area and is formulating a path forward todetermine testing and development of shale natural gas in theProject.Additionally, there are financial incentives provided by the Albertagovernment that apply to the development of unconventional naturalgas from shale formations in Alberta.Significantly, the whole area is developed with existinginfrastructure, pipelines, and processing plants with excess capacitywhich will assist the economics of a new shale play in the area.Shale natural gas drilling and production in Alberta is also expectedto increase the need for oilfield services. Running Fox'ssubsidiary, Alberta-based Claymore Oilfield Services Group, is wellpositioned to benefit from any increase in natural gas drilling andproduction by providing technical expertise related to the Albertanatural gas and oil industry, manpower, and field equipment.The Company has upside leverage to important commodities includingoil and gas, uranium and gold.2008 revenues exceeded $9.3 million.Running Fox is a Canadian growth-oriented small cap companydeveloping four key divisions:* Uranium and Gold Exploration Mineral Projects* Oil and Natural Gas Exploration and Production* Energy Sector Oilfield Services and Technology, and* Environmental Services - Encapsulation and RemediationThe Company has approximately 41 million shares issued andoutstanding and trades on the Toronto Stock Exchange- Venture.On behalf of the Board of Directors:Steven Schurman, CEO, US Prof. Geologist, DirectorRunning Fox Resource Corp.Alberta (403) 742 0527 www.foxgold.caThe Company relies on legislation applicable to forward lookingstatements, seeking safe harbour.This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 08.10.2009 - 18:03 Uhr
Sprache: Deutsch
News-ID 6736
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