DALLAS, TX, June 10 /CNW/ - Saxon Oil Company Ltd ("Saxon") (TSX VENTURE:
SXN) (FRANKFURT:SXN) (BERLIN:SXN) (PINK SHEETS:SXNOF) announced today that its
wholly owned subsidiary, Central Kansas Gas Gathering Company, LLC ("CKGG"),
has acquired an additional 125 miles of gas gathering systems in central
Kansas, bringing the total network of gathering systems to over 240 miles
effective July 1, 2008. Saxon does not want to disclose the purchase price of
the gathering systems at this time, because CKGG is currently negotiating
additional acquisitions and opportunities.
"These newly acquired gathering systems more than double the miles of
pipe CKGG owns in central Kansas," commented Steven D. Moore, president of
CKGG. "Unlike the first system we acquired, which was shut in when we took it
over in June 2007, these new systems are operational, generating cash flow
right now. As we announced earlier this month, CKGG is reactivating its first
system and will begin gathering gas under a new gas purchase contract within
the next 30 days."
The newly acquired gas gathering systems, totaling approximately
125 miles of pipe, are in Harvey, Kingman, McPherson, Pawnee, and Reno
counties. The largest 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 stretches across McPherson,
Rice and Barton counties
"Saxon's strategy to combine upstream E&P operations with the acquisition
and operations of gas gathering and processing systems will maximize the
profitability of both market segments," said Richard R. Green, president and
CEO of Saxon. "With gas prices where they are today, the opportunities for
Saxon and CKGG look even more attractive than they did a year ago when CKGG
made its first acquisition."
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 has a significant acreage position in
the Po Valley, Italy, as well as 100% of Central Kansas Gas Gathering LLC.
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: