Running Fox Resource Corp.
TSX VENTURE : RUN
OTC Bulletin Board : RFXRF
FRANKFURT : C8Q

Running Fox Resource Corp.

December 14, 2006 09:00 ET

Running Fox Resource Corp.: Positive Test Results Demonstrate New Technology Prototype Nearing Commercialization

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 14, 2006) - Running Fox Resource Corp. (TSX VENTURE:RUN)(OTCBB:RFXRF)(FWB:C8Q) Trent Moore, VP, reports:

Further to news dated November 22, 2006 announcing that Running Fox's Claymore division has successfully designed and developed a new technology for recycling expensive oil-based drilling fluids, the Company is pleased to announce that the commercial-scale unit field demonstration was successful over continuous monitored12 hour, 24 hour and 48 hour test thresholds.

The unit, which is designed for both onshore and offshore drilling, is the first commercial scale working prototype known to exist anywhere in the world and is patent pending.

After 60 hrs of continuous rig-drilling and monitoring under worst-case scenario conditions, Running Fox can report their new technology prototype exceeded all performance objectives. "We are very pleased with the outcome of the trial. The unit exceeded expectations under conditions that normally would not be expected on a typical well as the drill cuttings were much finer than expected. Basically, we were able to recycle drill fluid and turn associated very fine sand drill cuttings into stackable material as quickly it was being generated" reports Trent Moore. Estimated drill fluid savings over the demonstration amount to approx. $7,000 over the 60 hour field demonstration. Effective solids separation was a bonus, in addition to benefits for the environment in that less material will be sent to landfill or disposal facility.

The trial was conducted over a 4,480 foot horizontal section. The well was drilled into a light oil producing dolomite formation known to generate particulates fine enough to be destructive to oil-based drill-fluid systems and conventional shale shakers. "From a solids control perspective, this type of formation certainly represents a worst-case scenario. With conventional systems, the material is so fine and pump rates are so high, that even the finest shaker screens continually blind off and fail during drilling of these wells, causing high surface losses of fluids worth $1,000 per cubic meter to replace", explains Moore.

"The trial clearly demonstrated that our design is not susceptible to the same factors that cause screen plugging and conventional shaker failure", denotes Moore. "As such, the only changes we have to make at this point are strictly durability and dimensional."

"Now that we have demonstrated the technology is capable of increasing drilling performance and reducing drilling costs by recovering fluids typically lost to cuttings, keeping mud tanks cleaner and sending less material to centrifuges, and to disposal sites". This successful unit is expected to be ready for another commercial application in January 2007, also to be located in Alberta, Canada.

The application is designed to be suitable everywhere wells are drilled for oil and natural gas using oil-based drill fluids both on and off shore. Running Fox intends to bring onstream further broader applications of this technology and other innovative ideas being planned and bench-scale tested.

Running Fox is an energy sector Canadian small cap company with three distinct divisions:

1. Oil and Natural Gas Exploration and Production;

2. Energy Sector Field Services, Construction, and Technology; and

3. Advanced High-Grade Gold Project in British Columbia.

The combined market cap for Running Fox's three divisions is currently less than $30 million Canadian. First nine months consolidated revenues were $5.150 Million, with net income prior to adjustments of $884,000. Visit www.foxgold.ca for further information.

Revenues from its service division may in the future include incremental revenues from each commercial scale unit to be rig-mounted and put to work. The potential market for this 100%-owned technology is quite large. Initially, units will be built in-house by the Company's team, but larger unit volumes will be handled by outsourcing the manufacturing.

On behalf of the Board of Directors:

Trent Moore, VP, Running Fox Resource Corp.

The Company relies on legislation applicable to forward looking statements, and seeks safe harbour.

The TSX-V has neither approved nor disapproved of this news release.

Contact Information

  • Running Fox Resource Corp.
    Trent Moore
    VP, Director
    (403) 742-0500
    Website: www.foxgold.ca