DALLAS, June 18 /CNW/ - Saxon Oil Company Ltd ("Saxon") (TSX VENTURE:SXN)
(FRANKFURT:SXN) (BERLIN:SXN) (Pink Sheets: SXNOF) is pleased to announce that
it has acquired from AleAnna Energy LLC ("AleAnna") a 20% membership interest
in AleAnna Resources LLC, which has oil and gas interests in Italy, and a 20%
working interest in AleAnna's West Texas and New Mexico production and future
projects. To acquire these combined interests, Saxon made a cash payment of
$100,000 USD in earnest money and a further payment of $1,400,000 USD by way
of the issuance of 4,115,652 shares of Saxon stock issued at $0.40 CDN per
share. At closing Saxon received a cash payment of $676,470 USD from a
third-party entity who is also acquiring a portion of AleAnna's interests. As
a result, Saxon's total investment in the AleAnna transactions is valued at
"The AleAnna acquisitions put Saxon in great market positions, not only
in the United States, but in Europe, as well," said Richard G. Green,
president and CEO of Saxon. "We are acquiring proven oil and gas reserves in
the Permian Basin of West Texas and New Mexico, as well as a number of
additional prospects where we can carry out exploration and production
activities. AleAnna is on track to become one of the largest leaseholders of
exploration acreage in Italy, which will give us huge opportunities in Europe
for many years to come."
Michael "Mickey" McGhee will continue as president of AleAnna Resources
LLC. Mr. McGhee was previously vice president of geology for Plantation
Petroleum Holdings. He holds two degrees in geology from Texas A & M
University and has over thirty years of oil and gas geological and geophysical
experience. AleAnna has offices in Houston, Tex., and Ferrara, Italy.
"AleAnna is delighted to have Saxon as a partner in our Italy and Permian
Basin ventures," said Mr. McGhee. "We have put together an excellent team to
carry out the work. The combination of exploration and development activities,
both in the United States and Italy, make this an exciting opportunity for
everyone involved in it."
In Italy, AleAnna has five "Applications for Exploration Permits"
totaling 368,745 acres approved by the Italian Ministry of Economic
Development (General Directorate for Energy and Mining Resources, National
Mining Office for Hydrocarbons and Geothermics). Three of the exploration
permit applications, totaling 225,840 acres, are located in the Po Valley in
northern Italy, and two exploration permit applications totaling 142,905 acres
are located in the Bradano Foredeep area in southern Italy.
Italy has been a major gas producing region in Europe since the late
1940s with over 4,300 wells drilled in several geologic provinces. The Po
Valley is the most prolific gas basin in Italy with gas recovered from high
quality sandstone reservoirs at shallow depths. AleAnna has secured an
excellent position in the Po Valley and is currently performing environmental
studies. AleAnna plans to employ state-of-the-art 3-D seismic to identify
significant undrilled features. AleAnna plans to shoot seismic in the first
quarter of 2008 and to commence drilling as early as the fourth quarter of
AleAnna has reserves under 2,160 gross acres (1,600 net acres) in the
Permian Basin of West Texas and New Mexico which have been reviewed by an
independent third party for compliance with TSX reporting requirements. In
addition, AleAnna will use advanced seismic techniques to identify and develop
prospects throughout the Permian Basin.
About Saxon Oil Company Ltd:
Saxon Oil Company is a Tier One Texas-based Canadian company, trading on
the TSX Venture Exchange under the symbol SXN. The Company is an independent
oil and gas company engaged in the acquisition, development and production of
oil and natural gas reserves. The Company seeks to deliver strong shareholder
returns through an effective exploration and development program that
incorporates sound business practices with the latest oil field technologies.
The goal is to steadily increase proven reserves of oil and natural gas -
which, in turn, will lead to enhanced cash flows and earnings per share.
This press release includes certain "Forward-Looking Statements" within
the meaning of section 21E of the United States Securities Exchange Act of
1934, as amended. All statements, other than statements of historical fact,
included herein, including without limitation, statements regarding plans for
completion, production potential, other targeted areas and expansion and
development plans and objectives of Saxon Oil Company Ltd. are forward-looking
statements that involve various risks and uncertainties. There can be no
assurance that such statements will prove to be accurate and actual results
and future events could differ materially from those anticipated in such
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy and accuracy of this Release.
For further information:
For further information: Saxon Oil Company Ltd Patrice Nazareno,