New York-based Fox Petroleum Inc. (Pinksheets: FXPT) plans to create a new subsidiary focused on acquiring, developing producing natural gas mineral rights primarily in the Fayetteville shale play in Arkansas.

"The timing this week could not be better as we have been looking at the Fayetteville shale for some time," says Fox Petroleum president William Lieberman. "Chesapeake Energy just announced that it intends to unload its Fayetteville shale assets in the upcoming year, and we feel that the opportunities in natural gas could not be better."

Fox intends to launch a comprehensive review of current producing wells, and is looking to acquire distressed mineral rights in the play.

"We expect to have our first acquisition target lined up in the upcoming weeks, and we look forward to announcing the first of many acquisitions throughout the year," adds Lieberman.