DALLAS, June 4 /CNW/ - Saxon Oil Company Ltd ("Saxon") (TSX VENTURE: SXN)
(FRANKFURT:SXN) (BERLIN:SXN) (PINK SHEETS:SXNOF) announced today that its
wholly owned subsidiary, Central Kansas Gas Gathering Company, LLC ("CKGG"),
is activating its 100-mile gas gathering system in central Kansas and will
begin delivering natural gas within the next 30 days. In accordance with the
terms of the gas purchase contract, CKGG will deliver up to 2 million cubic
feet per day. Revenues from the gathering system should initially increase
Saxon's gross revenues by as much as 20%.
CKGG acquired the gathering system and associated compression facilities
in June 2007. "We're thrilled about reactivating the gathering system,"
commented Steven D. Moore, president of CKGG. "We've worked hard over the past
twelve months preparing to turn on the system and are excited about the
revenue, reserves and opportunity this asset will contribute to Saxon."
In late 2006 many Kansas gas producers and their connecting gas gathering
systems, including the system CKGG purchased, were adversely affected by the
unexpected shut-down of a major transport system. During the months since
purchasing the system, CKGG has diligently searched for markets for low BTU
gas in central Kansas before entering into this gas contract. Prior to the
gathering system being shut in, the system handled about 600,000 cubic feet of
gas per day, all of it coming from third-party producers. The system has an
estimated capacity in excess of 5 million cubic feet per day. Saxon plans to
increase throughput by drilling and producing gas wells.
Saxon currently has production totaling more than 245 bbl of oil
equivalent per day (boed) from over 100 wells located in Texas, New Mexico,
North Dakota, Oklahoma, and Kansas. In addition, Saxon owns a 20% membership
interest in AleAnna Resources LLC, which has a significant acreage position in
the Po Valley, Italy.
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, Patrice Nazareno, Toll Free: