One of the best penny stock picks is Fox Petroleum Inc. Fox Petroleum recently announced the completion of a major acquisition of land assets for the purpose of oil exploration on Alaska's North Slope near Prudhoe Bay.
Alaska's North Slope contains 23 active hydrocarbon fields that supplies the US with 16% of all its needs. This amounts to 800,000 barrels per day.
Prudhoe Bay is operated by BP and covers over 200,000 acres. It is North America's largest oil field and has just under 1,100 active wells. Prudhoe Bay produces over 400,000 barrels a day and has produced over 10 billion barrels to date.
Fox Petroleum obtained leases to mine 2 parcels of land. The larger parcel is the East Prudhoe Bay Prospect. It represents 26,789 acres and is next neighbours such as Exxon Mobil (XOM), BP, Chevron and ConocoPhillips.
Fox Petroleum's Arco Pipeline Prospect is a 5,701 acre parcel of land located near the important transportation infrastructure of the Trans Alaskan Pipeline and the all-weather Dalton highway.
Arco's Pipeline State 1 Well is located in the south-east corner of the Arco Pipeline Prospect, and has recorded oil and gas at different levels between 7,800 and 10,400 feet. The Arco prospect is neighboured by ENI, Italy's largest energy company.
Fox Petroleum has hired out a firm to prepare a report on the Alaska North Slope. Based on current production levels within and around Fox's acreage, it has been estimated as recently as in April 2007, there could 160 million barrels of oil.
Fox is currently doing a study using existing data for the region in order to assess the potential. The study is estimated to take 60 to 90 days. If the study goes well several test wells will be drilled by the first quarter of 2008.
Disclosure: I am currently not holding any positions.
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