DALLAS, June 25 /CNW/ - Saxon Oil Company Ltd. ("Saxon") (TSX VENTURE:
SXN) (FRANKFURT:OVG) (BERLIN:OVG) (PINK SHEETS:SXNOF) announced today that
it's wholly owned subsidiary, Central Kansas Gas Gathering ("CKGG"), has
executed a letter of intent to develop a joint venture with American Energies
Pipeline LLC ("AEP") of Wichita, Kansas, which will allow joint operations in
more than 400 miles of natural gas gathering systems in central Kansas. The
joint venture, to be called Mid Kansas Gas Gathering ("MKGG"), will be
headquartered in Wichita. AEP will act as operator of the joint venture.
Besides the gathering systems, MKGG plans to purchase a gas processing plant
with throughput capacity of up to 10 million cubic feet per day of natural
gas. This plant will be mobilized to Kansas in the 4th quarter of 2008. Plant
operations are expected to commence in the first half of 2009.
"Saxon is delighted to joint venture with American Energies experienced
technical team on this exciting opportunity," stated Steve Moore, president of
CKGG. "AEP's on-the-ground presence and technical experience with gas
processing will expedite Saxon's entry into this market."
CKGG recently acquired an additional 125 miles of gas gathering systems
in central Kansas, bringing the total network of gathering systems CKGG
controls to over 240 miles effective July 1, 2008. The newly acquired gas
gathering systems are located in Harvey, Kingman, McPherson, Pawnee, and Reno
counties. The largest portion of the system is approximately 48 miles of pipe
and includes compression facilities. The systems are located just to the east
and west of Saxon's existing 100-mile gathering system, which is located in
McPherson, Rice and Barton counties.
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.
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: