DALLAS, March 8 /CNW/ - Saxon Oil Company Ltd. ("Saxon") (TSX
VENTURE:SXN) is pleased to announce that it has signed a letter of intent with
AleAnna Resources, LLC ("AleAnna") to acquire a 20% working interest in
AleAnna's Italy and West Texas/New Mexico Projects. AleAnna is a privately
held company based in Houston, Texas. AleAnna's principal shareholder is
Mickey McGhee, a geologist with 33 years of experience.
AleAnna has obtained approval from the Italian Ministry of Economic
Development (General Directorate for Energy and Mining Resources, National
Mining Office for Hydrocarbons and Geothermics) for five "Application for
Exploration Permits" totaling 368,745 acres and has filed one environmental
impact assessment study with the local government officials. 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.
AleAnna is currently pursuing additional licenses in which Saxon will own a
20% working interest.
Italy has been a major gas producing region in Europe since the late
1940's with over 4,300 wells drilled in several geologic provinces. The Po
Valley is the most prolific gas basin in Italy with over 45 trillion cubic
feet of gas recovered from high quality sandstone reservoirs. AleAnna plans to
employ state-of-the-art 3-D seismic to explore and exploit potential
stratigraphic traps and identify significant anticlinal structural features.
Each area for which AleAnna has applied has the potential to yield multiple
exploration targets in multiple reservoirs. AleAnna will continue as Operator
of the Italy project focusing on execution of the 3-D program with drilling
planned for late 2008.
The Permian Basin Project - New Mexico/West Texas
AleAnna has reserves under 2,160 gross acres (1,600 net acres) in the
Permian Basin of West Texas and New Mexico which are being reviewed by an
independent third party for compliance with TSX reporting requirements. More
importantly, AleAnna has licensed 3,000 sq miles of 3-D seismic data
throughout the Permian Basin. This data will be used to generate geological
prospects and identify leasehold acquisition targets. Saxon will operate the
existing Permian Basin production and prospects to be drilled. Mr. McGhee and
his team will use 3-D seismic to identify prospects and Saxon expects to drill
10 to 12 wells in this area over the next 12 months.
Terms of Transaction
Under the terms of the letter of intent, Saxon will acquire a 20% working
interest in AleAnna's Italian Project and the Permian Basin Project, subject
to certain conditions, in consideration of 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.
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: Quayside Communications for Saxon Oil Company
Patrice Nazareno, 877-515-7708 Email: email@example.com or Saxon Oil Company
Sioux Sinnott, 214-234-0552