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

Running Fox Resource Corp.

November 08, 2006 09:00 ET

Running Fox Working Commercial-Scale Prototype for New Technology

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 8, 2006) - Running Fox Resource Corp. (TSX VENTURE:RUN)(OTCBB:RFXRF)(FWB:C8Q) Trent Moore, VP, reports:

Running Fox is pleased to report that its subsidiary, Claymore Field Services, has successfully designed and developed a new technology for recycling expensive oil-based drilling fluids used during the well drilling process. A fully-working commercial-scale prototype has now been built and is being readied for field use with applications everywhere wells are drilled for oil and natural gas using oil-based drill fluids.

The technology is designed to compliment conventional drilling rig equipment (shakers, centrifuges, dryers, etc) to make expensive drilling operations not only more environmentally friendly but also more cost effective by recycling and re-using oil-based drilling fluids typically destined for landfills or disposal sites. Further broader applications of this technology and other innovative ideas are being planned and bench-scale tested.

"What impresses me most about this technology and our development success" says Trent Moore, President, Claymore Field Services, "is how it was designed with a clear economic endpoint and technical application in mind. The cost savings in drilling fluid alone will more than cover the operating expense of the system. On an average well, it is estimated that this unit will retain an extra two cubes of drilling fluids, saving on average $2,000 per day of fluid, and saving further manpower and backhoe/vacuum truck costs. The savings for a deep well or a long drill program will be significant. These units can be manufactured and sent around the world after penetrating the Alberta and BC drilling markets where our immediate contacts are."

Any oil company drilling with invert or oil-based drilling fluids carries the burden of rising oil prices into their drilling operations. Oil-based fluid prices have steadily climbed from $350 per cu. meter in 1998 to well over $1,000 for the same volume in today's market. It is estimated that in 2007 there will be 2,200 wells drilled with oil-based fluids in Alberta and BC alone, spending in excess of $110 Million to recover fluids using man or dryer-based systems. Running Fox's new technology is expected to significantly reduce the costs involved in recovering the oil-based drilling fluids, while reducing landfill or hazardous facility disposal costs and associated effects on the environment.

Designed for both onshore and offshore drilling, the first unit will be rig-ready for applicable field testing on rig location by the month end.

Running Fox is an energy sector Canadian small cap company. It is exploring, developing and producing oil and natural gas interests in Canada, and is active in the oilfield service sector, earning revenues from gas pipeline tie-in, facilities construction, construction of field locations, gas plants, and oil and gas battery/field facilities. 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.

On behalf of the Board of Directors:

Trent Moore, VP

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
    (403) 742-0507
    Website: www.foxgold.ca