DALLAS, September 5 /CNW/ - Saxon Oil Company Ltd. ("Saxon") (TSX
VENTURE:SXN) (FRANKFURT:SXN) (BERLIN:SXN) (PINK SHEETS:SXNOF) has acquired a
100% working interest in the Pfannenstiel "B" oil and gas lease from Prairie
Resources Inc. of Hays, Kan., for an undisclosed amount of cash. The lease has
four producing oil wells and sufficient acreage for several development wells.
The lease is producing less than 10 barrels of oil per day (BOPD), but Saxon
has started a remedial workover program that should boost production
considerably. The Company also expects to carry out a 3-D seismic survey on
the Pfannenstiel lease and adjacent acreage to pinpoint the best locations for
potential development and exploratory wells in the area.
This transaction is separate from the Letter of Intent Saxon has signed
with Castle Resources Inc. of Schoenchen, Kan. to acquire working interests in
17 oil and gas leases in the same general vicinity as the Pfannenstiel lease
(see press release dated August 2, 2007). Saxon expects to close the Castle
"We think Kansas has some great potential for E&P companies like Saxon,"
commented Steven D. Moore, CFO of Saxon Oil, who is handling negotiations for
both transactions on behalf of the Company. "Both of these transactions fit
nicely into our portfolio of oil and gas assets."
Saxon will continue to look for assets in Kansas that complement its
existing assets and implement its growth strategy. Historically, Kansas ranks
fifth among states in the United States in cumulative production with over 30
trillion cubic feet of gas and over 6.6 billion barrels of oil produced to
date. Still, significant oil and gas reserves remain throughout central
Kansas. In addition, central Kansas holds some of the largest reserves of
helium in the world, a quickly depleting commodity that currently sells for
more than $70 per thousand cubic feet.
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
For further information:
For further information: Quayside Communications Patrice Nazareno,