Saxon Oil Announces Gas Gathering Joint Venture In Kansas



    DALLAS, Aug. 26 /CNW/ - Saxon Oil Company Ltd. ("Saxon") (TSX VENTURE:
SXN) (FRANKFURT:OVG) (BERLIN:OVG) announced today that its wholly owned
subsidiary, Central Kansas Gas Gathering ("CKGG"), signed a joint venture
agreement with Mid Kansas Gas Gathering LLP ("MKG") of Wichita, Kansas. The
50-50 joint venture, called Mid Kansas Gas Gathering JV ("MKGG"), will be
headquartered in Wichita, Kansas, with American Energies Pipeline, LLC (AEP)
acting as operator. The joint venture combines more than 400 miles of natural
gas gathering systems and includes the purchase of a 10 million cubic feet per
day natural gas processing plant to be located at a central processing and
sales point along the combined systems. MKGG's primary purpose is to provide
low btu natural gas producers in central Kansas with gathering, processing,
treating, and other natural gas services.
    The MKGG joint venture consists of CKGG's 230 miles of pipe and another
200 miles of pipe owned by MKG. MKGG's gathering systems are located in
McPherson, Rice, Barton Harvey, Kingman, McPherson, Pawnee, and Reno counties
of Kansas. The largest system is approximately 125 miles of pipe that stretch
east and west between Conway and Great Bend, Kan., across McPherson, Rice and
Barton counties, with secondary, perpendicular lines connecting to it. Another
large system, consisting of approximately 48 miles of pipe and compression
facilities, is located west of Great Bend, Kansas, in Pawnee County. In
addition to the gathering systems, MKGG has acquired a gas processing plant
with throughput capacity of up to 10 million cubic feet per day of natural
gas. This plant is being upgraded to handle nitrogen and helium extraction and
will be mobilized to Kansas later this year. Plant operations expected to
commence in the first half of 2009.
    "The joint venture with AEP's experienced technical team is an exciting
opportunity for CKGG and Saxon," stated Steve Moore, president of CKGG.
"Besides the joint venture of our gas gathering assets, American Energies and
Saxon will jointly explore for and produce natural gas along the existing
gathering systems."
    For more information on Mid Kansas Gas Gathering, please visit their web
site www.midkansasgasgathering.com

    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.
    Saxon currently has production totaling more than 245 bbl of oil
equivalent per day (boed) from wells located in Texas, New Mexico, North
Dakota, Oklahoma, and Kansas. In addition, Saxon owns a 20% membership
interest in AleAnna Resources LLC, which owns a significant acreage position
in the Po Valley of Italy, and will commence 3d seismic operations in the 4th
quarter of 2008.

    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
statements.

    
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy and accuracy of this Release.
    

    %SEDAR: 00005554E




For further information:

For further information: Saxon Oil Company, Patrice Nazareno, Toll Free:
1-866-515-7708

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Saxon Oil Company Ltd.

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