DALLAS, TX, March 8 /CNW/ - Saxon Oil Company Ltd. ("Saxon" or the "Company") is pleased to announce a non-brokered private placement ("Private Placement"), which will provide the Company with sufficient capital to further develop the potential of its international and domestic oil and gas projects. The Company has agreed to issue 95,559,452 shares at a price of C$.10 per share for gross proceeds of C$9.56mm. Each Unit will consist of one common share of Saxon at a price of C$0.10 per unit and one share purchase warrant. Each Warrant shall be exercisable into one common share at a price of C$0.15 for a period of two years from the completion of the placement.
Funds have been advanced to Saxon under a loan agreement with Amigo Oil and Gas Holdings LLC ("Amigo") in the amount of US$1.5 million at an annual rate of 6 percent. The Loan will be evidenced by a promissory note from Saxon, and these funds will be converted into equity upon completion of the Private Placement.
Amigo unconditionally agrees to purchase all units not subscribed by other parties under the financing up to a maximum to 95,559,452 units. Amigo is controlled by Hank Swartout. From 1985 through 2006 on his retirement, Mr. Swartout held the position of Chairman and Chief Executive Officer of Precision Drilling Ltd., Canada's largest independent drilling rig and service company. In June 2009, Mr. Swartout became Chairman of BlackWatch Energy Services Corp.
The proceeds from the Private Placement will be used to reduce corporate debt, advance the Company's projects and ensure sufficient working capital for future growth. The Company will evaluate its assets and identify where to deploy capital to increase project values, which will result in increased shareholder value. Steven D Saxon, Interim CEO of Saxon commented "Saxon looks forward to the opportunity to work with Mr. Swartout. His team has extensive international and domestic experience which will create growth and help develop Saxon's existing assets to their full potential."
The Private Placement is subject to TSX-V acceptance and applicable securities laws in Canada and the United States.
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 international 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 statements.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this Release.
SOURCE Saxon Oil Company Ltd.
For further information: For further information: Saxon Oil Company, Patrice Nazareno, Toll Free: 1-866-515-7708, Email: firstname.lastname@example.org