DALLAS, March 12 /CNW/ - Saxon Oil Company Ltd. ("Saxon") (TSX
VENTURE:SXN) (FRANKFURT:OVG) (BERLIN:OVG) is pushing ahead with development
plans for Italy. Earlier this month Chapman Petroleum Engineering, Ltd.,
www.chapeng.ab.ca ("Chapman"), completed a National Instrument 51-101
compliant report on the prospective resources of Saxon's twenty percent (20%)
interest in the Corte dei Signori and Ponti Dei Grilli permits in Italy.
Prospective resources are defined as those quantities of oil and gas estimated
on a given date to be potentially recoverable from undiscovered accumulations.
There is no certainty that the prospective resources will be discovered. If
discovered, there is no certainty that any discovery will be technically or
economically viable to produce.
Richard G. Green, president and CEO of Saxon, stated, "After an in-depth
review of the Chapman report, I'm even more excited about our opportunities
for developing gas reserves in Italy. Each of our permit areas contains
multiple potential prospects - and each prospect in these license areas
statistically could contain net reserves equivalent to the current proven
reserves of the Company."
Chapman's report assigns a best estimate undiscounted cumulative cash
flow of $50 mm USD net to Saxon's interest for each field discovered within
the prospect areas. Each permit area could contain multiple fields. Saxon
acquired these interests in June 2007 through the acquisition of 20%
membership interest in AleAnna Resources LLC ("AleAnna"). The estimated values
disclosed do not represent fair market values but represent the undiscounted
future cumulative cash flows for the prospective resource estimates in each
Chapman's 51-101 report evaluates the prospective resources of only two
of eleven permit applications submitted by AleAnna. The Corte dei Signori and
Ponti dei Grilli permits evaluated by Chapman are included in AleAnna's Phase
I development plan. Chapman's report indicates that new gas fields discovered
on these prospects are estimated to range in size from 8.5 to 200 Billion
cubic feet ("BCF") of recoverable sales gas with the best estimate for a new
field discovery being 41 BCF of recoverable sales gas.
In mid-February the Company released the independent third party reserve
report of Saxon's domestic producing properties prepared by LaRoche Petroleum
Consultants Ltd. assigning a Present Value discounted 10% of $18.5mm to
Saxon's existing domestic reserves as of 12/31/07. This report contained no
values for Saxon's interests in Italy or for Saxon's wholly owned subsidiary
Central Kansas Gas Gathering Company ("CKGG"). Saxon owns working interests in
102 producing wells.
The Company's audited yearend financials will be released no later than
April 29, 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
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,