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 Saxon Oil Company (SXN.V)

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cvac01
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PostSubject: Re: Saxon Oil Company (SXN.V)   Fri Sep 12, 2008 8:40 am

Saxon Oil Announces Signing of Binding Letter of Intent with Energy (CG) Ltd. and Non-Brokered Private Placement

Last Update: 9/8/2008 3:26:37 PM

DALLAS, Sep. 8, 2008 (Canada NewsWire via COMTEX) -- Saxon Oil Company Ltd ("Saxon") (SXN) (FRANKFURT:SXN) (BERLIN:SXN) today announced it has entered into a binding letter of intent ("LOI") dated September 5, 2008, with Energy (CG) Ltd. ("Energy"), a private British Virgin Island company, to purchase 100% of the issued and outstanding shares (the "Proposed Acquisition") of Picogina Holdings BV ("Picogina"), a private Dutch company and a wholly-owned subsidiary of Energy. The assets of Picogina consist of 100% of the participations (shares) of Hidrocarburos del Cantabrico S.L. ("HDC"), a private company incorporated under the laws of Spain, which holds a 100% interest in five hydrocarbon exploration licences (the "Licences") covering approximately 237,000 acres in the Asturias region of Spain. Saxon also wishes to announce a non-brokered private placement to raise gross proceeds of a minimum of $4,050,000 to a maximum of $6,000,000 (the "Offering") as discussed below.
The areas covered by the Licences are the subject of a National Instrument 51-101 ("NI 51-101") compliant report concerning their prospective resources prepared by Chapman Petroleum Engineering, Ltd. ("Chapman") of Calgary, Alberta. The purpose of their report was to independently determine the feasibility of HDC undertaking the development of the prospective resources in the Central Asturian Coal Basin and to determine the magnitude of the prospective resources and the economic value before and after the consideration of risk. The project area was deemed to have sufficient potential to justify the expenditure to seal the existing coal mines and begin the extraction of methane to be used for the generation of electricity. Chapman's report assigns a best estimate unrisked potential resource of 27,020 MMscf yielding an estimated present value discounted at 10% of US$66,389,000 ($2.12/share fully diluted by warrants). Under risk the present value discounted at 10% is estimated at $34,141,000 ($1.20/share fully diluted by warrants). The best estimate of future net revenue unrisked was US$189,138,000 and US$122,428,000 under risk. Chapman, an independent engineering firm, is independent to Saxon and responsible for the preparation of the technical disclosure and has reviewed and approved the contents of this news release.
Richard G. Green, President and CEO of Saxon stated "The Spanish coal mine methane project adds another very large, economically attractive venture to the diverse Saxon portfolio in the European market. This is complimentary to Saxon's existing exploration operations for natural gas in Italy and comes with a seasoned operational team in Spain to develop and manage this large, but relatively low risk project. This increases Saxon's natural gas focus in Europe at a time when international tensions are focusing European governments on the need for internal supplies instead of relying on potentially risky Eastern European supply sources."
Pursuant to the terms of the LOI, as consideration for the Proposed Acquisition, Saxon intends to issue a total of 17.5 million units of Saxon (the "Acquisition Units") to Energy. Each Acquisition Unit will be comprised of one common share of Saxon and one common share purchase warrant of Saxon. Each warrant will be exercisable to acquire one additional common share of Saxon at a price of $0.45 per share for a period of 24 months from the date of the closing of the Proposed Acquisition. Completion of the Proposed Acquisition is subject to due diligence by the parties, execution of a definitive purchase and sale agreement, approval by the TSX Venture Exchange and shareholder approval. Upon the completion of the Proposed Acquisition, the board of directors of Saxon will be re-structured so that it shall consist of nine directors of which six will be nominees of Saxon and three will be nominees of ECG.
Saxon also today announced that it is proposing to sell a minimum of 13.5 million units ("Offering Units") and up to a maximum of 20 million Offering Units at a purchase price of $0.30 per Offering Unit for gross proceeds of a minimum of $4,050,000 and up to a maximum of $6,000,000 (the "Offering") by way of a non-brokered private placement. Each Offering Unit will be comprised of one common share of Saxon and one half of one common share purchase warrant of Saxon. A full warrant will be exercisable to acquire one additional common share of Saxon at a price of $0.45 per share for a period of 24 months from the date of the closing of the private placement. It is intended that the Offering will close in one or more tranches. Up to US$2,000,000 of the net proceeds of the Offering will be released to Saxon upon execution of the definitive purchase and sale agreement and the balance will be released to Saxon upon completion of the Proposed Acquisition.
Under no circumstances shall this press release constitute an offer to purchase or the solicitation of an offer to sell the Offering Units or any other securities of Saxon. It also is not a solicitation of consents to the proposed transaction. No recommendation is made as to whether holders of Saxon securities should give their consent to this transaction. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offering, solicitation or sale would be unlawful.
All securities to be issued in conjunction with the proposed acquisition and offering, will be subject to a standard four-month hold period. In addition the securities that comprise the Acquisition Units may also be subject to escrow requirements and or other resale restrictions of the TSX Venture Exchange.
The following cautionary language is required under the NI 51-101 guidelines in regards to the definition of prospective resources. 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 prospective resources will be discovered. If discovered, there is no certainty that any discovery will be technically or economically viable to produce. The potential resource values stated are estimates only and not statements of fact. The estimated values disclosed do not represent a fair market value.
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.
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Bobwins01
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PostSubject: Hyanesville   Thu Jul 10, 2008 11:10 am

CRK has a pretty big position in the Haynesville shale. The Saxon wells appear to be on a small section. I would guess it's pretty unlikely that CRK will move very quickly on this but if Haynesville shale acreage continues to move up in value, Saxon could have some valuable land. 17K/acre is the latest price paid. If their land is prospective for Haynesville and they have 18 to 23% of 1273 acres X $17K= 3.8 to 5 million net to Saxon. So it's material for this little company. Bobwins
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cvac01
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PostSubject: Re: Saxon Oil Company (SXN.V)   Wed Jul 09, 2008 9:27 am

Saxon Holds Lease Position in Emerging Bossier/Haynesville Shale Play

DALLAS, July 9 /CNW/ - Saxon Oil Company Ltd. ("Saxon") (PINK SHEETS:
SXNOF) (TSX VENTURE: SXN) (FRANKFURT: OVG) (BERLIN: OVG) announces the company
has 1273 gross acres located within the published area of the rapidly emerging
Lower Bossier/Haynesville Shale resource play of North Louisiana and East
Texas. Saxon interest acreage is operated by Comstock Resources and is located
in Panola and Rusk Counties Texas in portions of the Oak Hill, North Tatum and
Carthage Northwest Fields. The eleven producing Saxon wells produce from the
Cotton Valley Limestone which overlies Bossier/Haynesville Shale and Saxon's
working interest varies in those wells from 18 to 23 percent.
The Jurassic-age Bossier Shale was considered the source rock for much of
the Cotton Valley gas well production in Northeast Texas and is contiguous
with the Haynesville Shale in North Louisiana. Until recently the Bossier
Shale was not considered a target for exploration and exploitation drilling.
The Bossier/Haynesville shale play is now the target for intensive leasing and
horizontal drilling activity by such prominent industry operators as
Chesapeake, PennVirginia, Petrohawk, El Paso, EnCana, and XTO. Increased gas
prices plus utilization of horizontal drilling and massive multiple fracture
stimulations have made this an emerging resource play. These wells are
completed in a similar fashion to the more mature Fayetteville, Woodford and
Barnett Shale resource plays. Area acreage prices have reportedly increased
from $100 per acre to as much as $17,000 per acre and twelve rigs are
currently drilling in this rapidly expanding exploration play. The spacing of
the horizontal wells is assumed to be approximately 80-acres per well but very
few specific well results have been made public. At least ten horizontal wells
have been drilled and completed to date across a fourteen county region of
East Texas and North Louisiana. (Source: Tristone Capital Company Energy
Research Report of 6/20/2008).
Recently announced Bossier Shale discoveries include the Penn Virginia
Corporation (PVA) Fogle 5H in Harrison County, Texas which reported on May 30,
2008 initial gas production of eight million cubic feet(MMcf) per day with
flowing casing pressure of 5,000 psi. The well is reportedly producing even
though currently constrained by pipeline capacity of 5MMcf. PVA has publicly
announced six additional horizontal Bossier Shale wells in Harrison County
planned for 2008 and is currently drilling. Saxon interest leasehold is
located approximately 15 miles west and southwest of the Fogle 5H well. Other
announced discoveries and lease acquisitions by Chesapeake and Petrohawk are
farther east in the Louisiana portion of the Bossier/Haynesville play and all
have been announced in the last five months. Multiple public companies have
recently made announcements concerning lease acquisitions in both Louisiana
and Texas. Original Gas in Place (OGIP) per section was estimated to be
200-245 billion cubic feet (Bcf) in public disclosures made by GMX Resources
and Cubic Energy and Petrohawk has indicated recoverable gas could be 44-55
Bcf/section implying recovery efficiency of 18-27% and reserves of over 5.6
Bcf per well (Source: Tristone Capital Company Energy Research Report of
6/20/2008).
Saxon does not have production or any proven or probable reserves in the
Bossier Shale in the 12/31/2007 reserve report and has not received any
specific well proposals to date from Comstock Resources, our operator. Due to
the distance from existing gas production, Saxon management does not believe
any proven or probable reserves net to our interest in our leasehold exist at
this time. Since our acreage is held by production from the Cotton Valley
wells, Saxon and Comstock could allow the play to continue to mature in both
the number of wells and reported data. Assuming the reported 80-acre spacing
is correct, at least eleven horizontal wells could ultimately be drilled on
Saxon interest leasehold. Saxon management will continue to monitor the
Bossier/Haynesville drilling activity in the area and will make participation
decisions on wells proposed, if any, based on sound economics.

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.
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cvac01
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Number of posts : 253
Registration date : 2008-03-29

PostSubject: Re: Saxon Oil Company (SXN.V)   Fri Jul 04, 2008 1:18 am

Hey Bobwins,

Some nice comments on the pipeline news and I fully agree. The story is getting told and there still aren't many listening. Success in Kansas and Italy will blow the lid of this little junior IMO.

Cheers,

cvac01

P.S. Its nice to see insiders buying in the open market as well

------------------------------------------------

Saxon Oil Company Ltd. (SXN)

As of July 2nd, 2008
Filing Date Transaction Date Insider Name Ownership Type Securities Nature of transaction # or value acquired or disposed of Unit Price
May 30/08 May 15/08 Moore, Steven Direct Ownership Common Shares 10 - Acquisition in the public market 27,000 $0.209
May 19/08 May 15/08 Green, Richard Direct Ownership Common Shares 10 - Acquisition in the public market 75,000 $0.160
Apr 29/08 Apr 23/08 Green, Richard Direct Ownership Common Shares 10 - Acquisition in the public market 27,500 $0.130
Apr 16/08 Apr 15/08 Green, Richard Direct Ownership Common Shares 10 - Acquisition in the public market 7,500 $0.130
Apr 16/08 Apr 11/08 Green, Richard Direct Ownership Common Shares 10 - Acquisition in the public market 40,000 $0.130
Jan 30/08 Jan 29/08 Green, Richard Direct Ownership Common Shares 10 - Acquisition in the public market 50,000 $0.175
Oct 03/07 Oct 03/07 Green, Richard Direct Ownership Common Shares 10 - Acquisition in the public market 15,000 $0.280
Oct 03/07 Oct 03/07 Green, Richard Direct Ownership Common Shares 10 - Acquisition in the public market 10,000 $0.275
Sep 12/07 Aug 25/07 Saxon, Bill D Direct Ownership Common Shares 10 - Acquisition in the public market 1,000 $0.270
Sep 12/07 Aug 23/07 Saxon, Bill D Direct Ownership Common Shares 10 - Acquisition in the public market 500 $0.270
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Bobwins01
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Number of posts : 25
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PostSubject: pipeline   Tue Jul 01, 2008 9:36 am

I liked this announcement for a couple of reasons. This hooks Saxon up with an established pipeline company. Their combined pipeline can service a broader geographic area but more importantly, brings in experience and credibility to the operations. This will be important when the JV goes to finance the purchase and construction of the treatment facility that is the key to the whole operation. The removal of the CO2 and helium raises the btu of the gas to national pipeline standards and creates a secondary income for the pipeline JV. This operation suddenly makes lots of shut in gas wells in Central Kansas viable production wells. The rising gas prices make it even more appealing.

I was worried that Saxon was spread too thin and wouldn't be able to pull off their multiple segments but this JV solves a few problems and hopefully leads to implementation of the Central Kansas pipeline system. Bobwins
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cvac01
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PostSubject: Re: Saxon Oil Company (SXN.V)   Wed Jun 25, 2008 8:49 am

Saxon Oil Signs Letter of Intent in Kansas

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.
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cvac01
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PostSubject: Re: Saxon Oil Company (SXN.V)   Tue Jun 17, 2008 5:47 pm


SAXON OIL COMPANY LTD.
Transmitted by CNW Group on : June 17, 2008 14:31


Saxon Oil - Midyear 2008 Operational Update

DALLAS, June 17 /CNW/ - Saxon Oil Company Ltd ("Saxon") (TSX VENTURE:
SXN) (FRANKFURT:SXN) (BERLIN:SXN) (PINK SHEETS:SXNOF) has several noteworthy
projects that will continue lead to improving cash flows, improved financial
performance and increased shareholder value in the second half of 2008. Saxon
currently has production totaling more than 251 bbl of oil equivalent per day
(Boepd) from wells located in Texas, New Mexico, North Dakota, Oklahoma, and
Kansas, compared to 80 Boepd at the beginning of 2007. Saxon, through its
wholly owned subsidiary, Central Kansas Gas Gathering System, now owns 240
miles of gas gathering systems in central Kansas. In addition, Saxon owns a
20% membership interest in AleAnna Resources LLC ("AleAnna"), which has a
significant acreage position in the Po Valley, Italy.
In May 2008, Saxon announced the successful completion of the Eumont
State No. 1 exploratory well in Lea County, New Mexico. The well flowed at
daily rates exceeding 500 barrels of oil per day (bopd) with no water through
a 48/64-inch choke during the first 24 hours of sustained production through
perforations from 3,962 to 3,968 ft in the Seven Rivers formation. The well
continues to flow at more than 200 bopd through a smaller 16/64-inch choke.
Saxon has a 15% working interest in this well, which has oil sales of over
8,000 barrels in the first 30 days of production.
Saxon is pleased with this oil discovery, not only with the initial high
flow rate, but because it is flowing oil to the surface under its own
pressure. Typically in New Mexico a newly completed oil well immediately
requires some type of artificial lift to bring the oil to the surface. The
Eumont well opens up a whole new area of exploration and development
opportunity for Saxon. Saxon has identified at least three offset locations
for development drilling.
In Oklahoma, the Williams 3-9 well was originally drilled and completed
in January 2008 in the Red Fork F sand. The well was recompleted into the
primary objective, the Red Fork D sand, in June 2008. The well is now
producing more than 2.4 MMcfd of natural gas and 20 Bopd. Saxon owns a 4.4%
working interest in the well. The operator plans to commingle production from
the D and F sands in the near future. At least two offset locations have been
identified for development drilling.
In Kansas, the Castle Resources Cheney No.4 re-entry well has been
successfully completed. The well has been steadily increasing in oil
percentage and rate and currently has stabilized production of 7 bopd. The
well was completed with coiled tubing horizontal laterals that Saxon has
successfully used in its Walker and Stull wells in Kansas. Saxon owns a 25%
working interest in the Cheney well, which is located in Gove County near
existing producing Saxon properties. Saxon is continuing to monitor the
performance of the wells completed with the laterals and anticipates
additional workovers in existing Saxon-operated Kansas wells.
Also in Kansas, Saxon Oil, through its wholly owned subsidiary, Central
Kansas Gas Gathering Company, LLC ("CKGG"), 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.
Acquired in June 2008, the new 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.
These newly acquired gathering systems more than double the miles of pipe
CKGG owns in central Kansas. Unlike the first system Saxon acquired, which was
shut in when Saxon took it over in June 2007, these new systems are
operational, generating cash flow. In addition, CKGG is reactivating its first
system and will begin gathering gas under a new gas purchase contract within
the next 10 days.
Saxon's strategy combines upstream E&P operations with the acquisition
and operations of gas gathering and processing systems will maximize the
profitability of both market segments. 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.
In May 2008, AleAnna (of which Saxon owns a 20% membership interest)
received formal approval from the Italian Ministry of Economic Development for
the Corte dei Signori exploration application. The granting of this official
decree by the Ministry of Economic Development is a major step for AleAnna.
Plans are underway to shoot 3d seismic this fall with drilling to follow after
evaluation of the seismic data.
In March 2008, Saxon released results of a resource evaluation on the
prospective resources of Saxon's interest in two permitted areas in Italy.
Chapman Petroleum Engineering, Ltd., completed a Canadian National Instrument
51-101 compliant report on the prospective resources of Saxon's 20% interest
in the Corte Dei Signori and Ponti Dei Grilli permits in Italy. Chapman's
report assigns a best estimate undiscounted cumulative cash flow of
$50 million (USD) net to Saxon's interest for each field discovered within the
prospect areas.

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.
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cvac01
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PostSubject: Re: Saxon Oil Company (SXN.V)   Tue Jun 10, 2008 8:03 pm

Hi all,

Just found a stockwatch eblast in my inbox sent out at around 2pm. Guess which company they are talking about??

Yup Saxon (SXN.v)

Cheers,

cvac01

------------------





  • Company Now Owns Over 240 Miles of Gas Pipelines
  • Revenues Expected to Increase by as Much as 40%
  • Proven Track Record for Oil and Gas Production
  • Producing Now in 5 States - MUST SEE!

Click here for TODAY'S NEWS and
More Information on this Company!


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cvac01
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PostSubject: Re: Saxon Oil Company (SXN.V)   Tue Jun 10, 2008 8:02 pm

Hi all,

I told you to hang on and those who listened were rewarded again with some more great news. Things are just getting going IMO and there is still lots more to come. Get the cheapies while you can. IMO anything under .50 if your not in yet is a bargain and you will get the opportunity to take 1/2 your position of the table at $1 or more and ride some freebie shares to see what Rich Green and his management team can do.

I have done my DD on SXN and follow things closely. I got my fill of SXN shares for now, unless Italy goes gangbuster then I'll have to buy some more. For now I am building a new position in big winner and will be sure to roll SXN profits into it at $1 or more to top up and ride the next one. This game takes time, but once you get the hang of it, its like your own ATM.

Keep up the good work Rich!!

Cheers,

cvac01

------------------------------------------------------------------


SAXON OIL COMPANY LTD.

Transmitted by CNW Group on : June 10, 2008 16:05
Saxon Oil Doubles Gas Gathering Capabilities

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.
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cvac01
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Number of posts : 253
Registration date : 2008-03-29

PostSubject: Re: Saxon Oil Company (SXN.V)   Wed Jun 04, 2008 9:33 am

Hi all,

Just as suspected news out on the Kansas Pipelines. Hope the few that are registered here took advantage of the % gains since bringing this one to the board. This is the first of many.

OCO.V is next IMO

Cheers,

cvac01

---------------------


SAXON OIL COMPANY LTD.
Transmitted by CNW Group on : June 4, 2008 11:22


Saxon Oil Activates Gas Gathering System

DALLAS, June 4 /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"),
is activating its 100-mile gas gathering system in central Kansas and will
begin delivering natural gas within the next 30 days. In accordance with the
terms of the gas purchase contract, CKGG will deliver up to 2 million cubic
feet per day. Revenues from the gathering system should initially increase
Saxon's gross revenues by as much as 20%.
CKGG acquired the gathering system and associated compression facilities
in June 2007. "We're thrilled about reactivating the gathering system,"
commented Steven D. Moore, president of CKGG. "We've worked hard over the past
twelve months preparing to turn on the system and are excited about the
revenue, reserves and opportunity this asset will contribute to Saxon."
In late 2006 many Kansas gas producers and their connecting gas gathering
systems, including the system CKGG purchased, were adversely affected by the
unexpected shut-down of a major transport system. During the months since
purchasing the system, CKGG has diligently searched for markets for low BTU
gas in central Kansas before entering into this gas contract. Prior to the
gathering system being shut in, the system handled about 600,000 cubic feet of
gas per day, all of it coming from third-party producers. The system has an
estimated capacity in excess of 5 million cubic feet per day. Saxon plans to
increase throughput by drilling and producing gas wells.
Saxon currently has production totaling more than 245 bbl of oil
equivalent per day (boed) from over 100 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.
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PostSubject: Re: Saxon Oil Company (SXN.V)   Fri May 30, 2008 11:12 am

cvac01 wrote:
Hi all,

I am expecting some news from SXN on two fronts in the near term, possibly even this week.

1) Earnings
2) Kansas news regarding ther pipelines.

We'll see what the market thinks. This is a long term hold for me and I got a lot of it.

Cheers,

cvac01
Saxon Oil Announces First Quarter 2008 Results
SAXON OIL COMPANY LTD SXN
5/30/2008 12:46:51 PM

DALLAS, May 30, 2008 (Canada NewsWire via COMTEX News Network) --
Saxon Oil Company Ltd ("Saxon") (TSX VENTURE: SXN) (FRANKFURT:SXN) (BERLIN:SXN) (PINK SHEETS:SXNOF) today reported revenue of $910,664 for the quarter ended March 31, 2008, compared to revenue of $478,3556 for the quarter ended March 31, 2007, an 107% increase. The increase in revenues is the result of higher product commodity prices and increased production from new and existing wells. Net loss for the quarter ended March 31, 2008 was reduced to $140,754, or $0.00 per fully diluted share, compared to a loss of $357,306, or $0.01 per fully diluted share, for the quarter ended March 31, 2007.
Saxon is off to a strong start in 2008, with the Company successfully drilling and completing several prominent wells. Most recently, Saxon announced the successful completion of the Eumont State No. 1 exploratory well in Lea County, New Mexico, which, as of this release, continues to produce at a stabilized rate of over 300 bbl of oil per day with no water. In addition, the Company has committed to participate in the drilling of two new development wells - the Williams 4-9 well and the Oklahoma State 5-13 well - in the Lasley Field in Caddo County, Oklahoma. Saxon currently owns working interests in 27 producing wells in the Lasley Field.
Saxon has production totaling more than 245 bbl of oil equivalent per day from 103 wells located in Texas, New Mexico, North Dakota, Oklahoma, and Kansas. Saxon, through its wholly owned subsidiary, Central Kansas Gas Gathering System, owns 100 miles of gas gathering systems in Central Kansas. In addition, Saxon owns a 20% membership interest in AleAnna Resources LLC, which has a significant acreage position in the Po Valley, Italy.
Selected Financial Information
The following table sets forth selected consolidated financial data for Saxon which has been derived from consolidated financial statements in accordance with Canadian GAAP. The following financial data is expressed in United States dollars:
<<
-------------------------------------------------------------------------
Quarters Ended March 31
2008 2007
-------------------------
Revenue $ 910,664 $ 478,356
Net Loss $(140,754) $(357,306)
Net Loss per share basic and diluted $(0.00) $(0.01)
-------------------------------------------------------------------------
>>


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 statements.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy and accuracy of this Release.
%SEDAR: 00005554E
SOURCE: Saxon Oil Company Ltd.
Saxon Oil Company, Patrice Nazareno, Toll Free:
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PostSubject: Re: Saxon Oil Company (SXN.V)   Thu May 29, 2008 8:05 am

Hi All,

I missed posting this news release in between the last two on March 4 and May 21

Cheers,

cvac01
-------------------------------------------------------------------------------------

May 13, 2008

Italy Project Receives Ministry Approval To Shoot 3D Siesmic

DALLAS, TX - Saxon Oil Company Ltd ("Saxon") (TSX VENTURE: SXN) (FRANKFURT:SXN) (BERLIN:SXN) (PINK SHEETS:SXNOF) is pleased to announce that AleAnna Resources LLC ("AleAnna") www.aleanna.us, of which Saxon owns a 20% membership interest, received formal approval from the Italian Ministry of Economic Development for its 248 sq.km. (62,000 acre) Corte dei Signori exploration application. The decree was published in the April 2008 “Bollettino Ufficiale degli Idrocarburi e della Geotermia (B.U.I.G)” a copy of which can be found here. The application grants AleAnna the exclusive right to explore for oil and natural gas for a period six (6) years within the permit boundaries. The Corte dei Signori permit is located in the Emilia-Romanga region of the Po Valley approximately 20 km east of the town of Ferrara.

In March, 2008, Saxon released results of a resource evaluation completed on the Corte Dei Signori area. Chapman Petroleum Engineering, Ltd., ("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. 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. Chapman's report assigns a best estimate undiscounted cumulative cash flow of $50 million (USD) net to Saxon's interest for each field discovered within the prospect areas.

AleAnna will proceed immediately with plans to acquire 3d seismic data on the Corte dei Signori permit in the 4th quarter of 2008 with the intent to drill the 1st well in 2009. “The granting of this official decree by the Ministry of Economic Development is a major step for AleAnna” stated Mickey McGhee, President of AleAnna. “We are finalizing discussions with a premier international 3d seismic acquisition contractor and intend to start acquisition of 3d seismic data this fall. Formal approval of the Corte dei Signori decree secures AleAnna within the ranks of permit holders in Italy and demonstrates AleAnna’s continuing commitment to the country of Italy. AleAnna would like to thank the Ministry of Economic Development for their professionalism and assistance throughout this lengthy approval process”. This decree marks the beginning of AleAnna’s active development program and sets the stage for receiving approval of additional permits in the near future. The approval of this first application will assist AleAnna in formalizing the other applications it currently holds. In Italy, AleAnna has an additional ten "Applications for Exploration Permits" totaling 744,037 acres approved by the Italian Ministry of Economic Development (General Directorate for Energy and Mining Resources, National Mining Office for Hydrocarbons and Geothermics). Eight of the exploration permit applications, totaling 602,790 acres, are located in the Po Valley in northern Italy, and two exploration permit applications totaling 141,247 acres are located in the Bradano Foredeep area in southern Italy.

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 gas recovered from high quality sandstone reservoirs at shallow depths. AleAnna has secured an excellent position in the Po Valley.

Richard G. Green, president and CEO of Saxon, stated, "Saxon is very excited about the 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. This is a major accomplishment for AleAnna to receive the official decree and Saxon is ready to assist AleAnna as its development program moves forward in 2008. This will be an exciting year for Saxon and AleAnna as our international efforts progress from the planning phase to an active development phase.”

In addition to its interest in AleAnna in Italy, Saxon currently has production totaling approximately 207 BOED from 102 wells located in Texas, New Mexico, North Dakota, Oklahoma, and Kansas. Saxon, through it’s wholly owned subsidiary, Central Kansas Gas Gathering System, CKGGS, owns over 100 miles of pipeline, 18 leaseholds, and 30 wells across Central Kansas.

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.
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PostSubject: Re: Saxon Oil Company (SXN.V)   Wed May 28, 2008 6:49 pm

Hi all,

I am expecting some news from SXN on two fronts in the near term, possibly even this week.

1) Earnings
2) Kansas news regarding ther pipelines.

We'll see what the market thinks. This is a long term hold for me and I got a lot of it.

Cheers,

cvac01
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PostSubject: Re: Saxon Oil Company (SXN.V)   Wed May 21, 2008 10:53 am

Hi all,

Really nice move on SXN so far with a high of .345 reached today. Trading data right now is: 0.27 0.06 28.57% 716,700

Cheers,

cvac01


Transmitted by CNW Group on : May 21, 2008 11:50


Saxon Announces New Mexico Oil Discovery

DALLAS, May 21 /CNW/ - Saxon Oil Company Ltd. ("Saxon") (TSX VENTURE:
SXN) (FRANKFURT: OVG) (BERLIN: OVG) (PINK SHEETS: SXNOF) announces the
successful completion of the Eumont State No. 1 exploratory well in
Lea County, New Mexico. The well was perforated from 3,962 to 3,968 ft in the
Seven Rivers formation and initially flowed over 88 barrels of oil within two
hours. The well was shut-in to move the rig off location and secure additional
onsite storage tanks. The well flowed at daily rates exceeding 500 barrels of
oil per day (bopd) with no water through a 48/64 inch choke during the first
24 hours of sustained production. Subsequently, the well choke size was
decreased to 20/64 inch and the well tested at a stabilized rate of over
300 bopd with no water at over 150 lb per sq inch (psi) of tubing pressure.
Saxon has a 15 % working interest in this well.
"We are extremely pleased with this oil discovery," said Richard G.
Green, president and CEO of Saxon, "not only with the initial high flow rate,
but because it is flowing oil to the surface under its own pressure.
Typically, in this part of the world, a newly completed oil well immediately
requires some type of artificial lift to bring the oil to the surface. The
Eumont well opens up a whole new area of opportunity for Saxon. We have
identified at least four offset locations for development drilling. To say the
least, this is a very exciting exploration discovery for Saxon and its
partners."
Saxon currently has production totaling more than 245 bbl of oil
equivalent per day (boed) from over 100 wells located in Texas, New Mexico,
North Dakota, Oklahoma, and Kansas. Saxon, through its wholly owned
subsidiary, Central Kansas Gas Gathering System, owns 100 miles of gas
gathering systems in Central Kansas. In addition, Saxon owns a 20% membership
interest in AleAnna Resources LLC, which has a significant acreage position in
the Po Valley, Italy.

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
statements.

The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy and accuracy of this Release
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PostSubject: Re: Saxon Oil Company (SXN.V)   Tue Apr 22, 2008 9:47 am

Part 4

Part 4 was to be on Italy and the potential there, but prior to finishing part 4 a company report on Italy and since then an April 2008 Operational Update have come out.

Cheers,

cvac01

---------------------------------------

March 4, 2008

Saxon Announces 51-101 Report on Italy

DALLAS - Saxon Oil Company Ltd. ("Saxon") (TSX VENTURE:SXN) (FRANKFURT:OVG) (BERLIN:OVG) Saxon Oil Company Ltd. ("Saxon") is pleased to announce that Chapman Petroleum Engineering, Ltd., www.chapeng.ab.ca ("Chapman") has prepared 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 prospects 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.

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 prospect 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 field.

Chapman's 51-101 report evaluates the prospective resources of only two of eleven prospect applications submitted by AleAnna. The Corte dei Signori and Ponti dei Grilli prospects 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.

The Summary of Saxon's prospective resources and economics net to Saxon's appraised twenty percent (20%) interest in fields, before risk, discovered within the Corte dei Signori Permit and the Ponte dei Grilli prospects as prepared by Chapman Petroleum Engineering Ltd are:



On February 14, 2008, 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.

Richard G. Green, President and CEO of Saxon stated "Saxon is pleased with the work done by Chapman and we are excited by the resource potential in Italy. Each of our permit areas contain multiple potential prospects which will be evaluated by 3-D seismic prior to drilling activity. Each prospect in these license areas statistically could contain net reserves equivalent to the current proven reserves of the Company".

Saxon's 51-101 report will be filed with the TSX Exchange. The Company's audited year end financials 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 such statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this Release.

Contact:

Saxon Oil Company
Patrice Nazareno
www.saxonoil.com



----------------------------------------



Operational Update



April 15, 2008

DALLAS - Saxon Oil Company Ltd. ("Saxon") (PINK SHEETS: SXNOF) (TSX VENTURE: SXN) (FRANKFURT: OVG) (BERLIN: OVG) is moving ahead with several noteworthy projects in the first half of 2008 that should continue to lead to improving cash flows, improved financial performance and increased shareholder value. Saxon remains active in its drilling and completion program throughout the first quarter of 2008. The company’s midstream gathering gas system in central Kansas, held in Saxon’s wholly owned subsidiary, Central Kansas Gas Gathering (CKGG), should begin service in the 2nd quarter of 2008. In Italy, AleAnna Resources LLC, of which Saxon holds a 20% membership interest, is progressing on the process to obtain government approval for a 3d seismic survey scheduled for fall 2008.



In the 4th Quarter of 2007 and 1st Quarter of 2008, Saxon successfully drilled and worked over a number of wells in Texas, Oklahoma and Kansas. Saxon is currently producing more than 200 barrel of oil equivalent per day (boepd), with production equally divided between crude oil and natural gas. A year ago, Saxon was producing approximately 80 boepd, with virtually all production being natural gas.



In January 2008, Saxon worked over the Saxon Oil Walker No. 1 well in Rush County, Kansas. Prior to this work the well was non-commercial, producing less than 1 bopd. After the completion the well has been producing 4 bopd. Following the workover of the Walker well, Saxon began work on the Stull No. 1 well, also in Rush County, Kansas. Prior to the workover, the well was producing less than 2 bopd with more than 400 bbl of water per day. The well is now producing 8 bopd, a four-fold increase from prior production rates, with a dramatic reduction in water production. In a similar operation, Saxon is participating in the reentry and recompletion of the Castle Cheney No. 4 well in Gove County, Kansas. Two potentially productive zones will be tested for 90 to 120 days. Saxon owns a 25% non-operating, working interest in the well.



All three wells in Kansas were recompleted using coil-tubing conveyed, 1-inch horizontal lateral holes that extend 300 ft or more into the formation. The technology is proving to be an inexpensive but effective way to boost oil production, and Saxon is studying the economic viability of using it on other wells in surrounding area. In addition, Saxon is looking to drill three to six new development wells on acreage it currently holds in Kansas.



In Louisiana, Saxon has a 10% working interest in the exploratory Kepco Hailey No. 1 well. This well tested oil, gas and water with excessive amounts of sand from the Wilcox objective sand and is now being completed using a gravel pack to control the sand influx. The Hailey with its adjacent salt water disposal well should commence production in the next several months.



As previously announced in late 2007, Saxon is participating in the completion of the Eumont State No. 1 well in New Mexico. The well had electric log and oil sample shows from multiple intervals, however, drilling and completion problems persist. Initial operations in one potentially productive interval have concluded with no commercial oil recovery. Saxon is currently evaluating proposals for testing several other intervals in this exploratory well. Saxon owns a 15% working interest in the Eumont well.



The recently announced Tri C Jackson-Williams No 3, Comstock Rust Estate 2-3 and Western Williams No. 3-9 wells drilled in south Texas, east Texas and Oklahoma, respectively, continue to produce at attractive rates. The east Texas well is cashing flowing and Saxon expects revenue from the other wells to commence in the next several months. Further development activity in both east Texas and in Oklahoma is expected in 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
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PostSubject: Re: Saxon Oil Company (SXN.V)   Tue Apr 22, 2008 9:37 am

Part 3 (Contd)

When Rich came on board he sat down with is management team and decided they weren't going to continue in the direction the company was headed. For those of you who have been with the company for awhile you understand the reasoning for this (it wasn't working!!).

Anyways, Rich and his team decided not to continue drilling one well after another with small % ownership in wells Texas and Oklahoma. They were going to look for bigger plays that would push the production and reserves up much quicker and have greater upside potential in terms of exploration. IMO this is what investors look for (growth) and it wasn't what we were getting with these so called foundation wells. It was not the exponential growth I look for. IMO SXN (previously SCV.V) was being run like a private company and I think we still see a little bit of that today, but its getting better.

KANSAS:


Kansas History:
The Hugoton Natural Gas Area is an accumulation of large natural gas fields in Kansas of which the largest is known as the Hugoton Field. It is believed to be the largest natural gas field in North America and was first discovered in 1922. Over 10,000 wells produce gas and oil in the Kansas portion of the Hugoton area today, and thousands of miles of pipeline carry Hugoton gas to many parts of the United States. Of these 10,000 or so wells approx. 8,000 wells produce gas from the Chase Group in the Hugoton Field.

Why is the field important to SXN?:
We are in Central Kansas and so is our pipeline. The Hugoton Field is in SW Kansas? So it doesn't make much sense to acquire leases ad pipelines in central kansas and perhaps why there isn't much competition in the area? Well, apparently SXN management and others have seen some independent studies, well logs, etc that show the Chase Formation extending further east towards our pipelines and leases and does not stop at the Hugoton Field. According to these findings it actually passes right under where SXN has been acquiring and continues to acquire pipelines and lease acres to drill.

So why nobody else is on to this?:
From what I gather there are others but not many doing this, and are mostly small private companies and are not trying to control the area like SXN, and want to drill targets in the area because of their high success ratios. Also, not many have drilled for the Chase formation because it is an oil producing area which has seen a lot of oil production and deeper gas from deeper formations. Thus, companies in search of this O&G just drilled through the Chase Formation because it was lower BTU gas. However, with higher gas prices and the technology to increase the BTU gas by addition or subtraction, the opportunity exists to go after this Chase Formation (low BTU & Pressure gas). SXN is going to strip the gas and where things get intersting is with the Helium selling at over $100/mcf which will be a byproduct of this striping of the low BTU gas.

How are we to control the area and what is our strategy based on?:
It is based on the majors strategy who were in the area in better times (ie higher gas prices).Their strategy was to control the area with their pipelines and drill along their pipelines. However, gas prices went down and the majors decided to look elsewhere for value. They bascially picked up and left, leaving infrastructure and data behind. So i guess you could say SXN isn't the first to think of this strategy, but perhaps the first to do it the right way IF they are successful with their visions and strategy.

Current Area Conditions:
Right now from what I understand the area in and around our pipeline and leased acres is spread among many small (mostly private) companies. However, the potential of this formation is so big that 1,000's of wells will have to be drilled in order to realize the true potential and we will continue to acquire acres within 2 miles of our pipelines. So, even if we only acquire XX acres of land to explore and drill, as long as we are acquiring pipelines we will control the production from these 1,000 of wells in the area via 3rd party gas that needs to be refined (at our plant) to enter the main pipelines in the area because it is low BTU gas. Our own gas from the wells we drill is IMO important for cashflow in the early stages of development to avoid excessive dillution through PP etc. However, with the success ratios as high as they are on these wells, we will continue to drill these low cost wells and EVENTUALLY more and more companies will catch on and start to develop the area with us, which we will control.

Why were we able to pick up these pipelines for pennies on the $?:
We picked up our first pipeline from Enbridge which was shut-in and are acquring 2 more which will I would suspect will be announced in March sometime. From what I understand they are all shut-in because of the low BTU Gas and I am assumeing their are no plants (shut down) to send the gas to and strip nitrogen. Hence, the reason why SXN is building their position as a leader in the area. TO CONTROL IT

The costs moving forward in the area and expected production?:
Its shallow gas (1,500' - 2,000') with avgerage reserves of 150 MMcf/well and completed well costs of around $150-$200k per well. The area will cover over a 1,000 square miles and possibly 10,000 or more wells will be needed to develop the nearly 2 TCF of methane reserves and neaerly 2 Bcf of Helium. So essentially it is going to be a HUGE PLAY that will be controlled by companies that control the gas gathering systems which we are currently trying to acquire. Additionally, these types of wells are low risk with success ratios higher than 90%. So not a "sexy" story that will stir up a lot of interest, but that is why we have Italy and Kansas is the icing on the Cake the type of play that sneaks up on you. WE HAVE DEFINETLY BEEN IN STEALTH MODE Smile

More Specific on our focus in Kansas:
From what I gather the company is going to be very active in Kansas and we have some great upside potential with "company maker" assets. Currently, the majority (64% of US Reserves) of SXN's assets are in Kansas as a result of recent acqusitions in August 2007 and I think in such a short period of time it show the potential we have in Kansas. The purchase was good for many reasons, but two main reasons standout. It reduced our risk by giving us a better balance between Oil & Gas (now approx 50/50) and also provided us with an opportunity to control the entire area before interest is shown in the low BTU gas by other companies. Because as it stands right now the low BTU gas is not high enough to run it through the Transcontinental Pipelines which are nearby and we need to strip gas, which gives us the Helium upside, that gives Kansas a little "sex appeal" IMO.
SO how do we strip it, when do we do it and what does it cost?:

How:
Nirtogen Rejction Units Among other ways (google it and share with us what you find)
When: We should have a plant build in the next 1-1.5 years and hope to have about 10mmcf/day going through the the plant stripping the low BTU gas and getting it ready for the transcontinental pipelines. Don't forget the Helium upside in their too.
Cost: Thats a good questions let me know if you find out Smile

In summary:

In Kansas we our going to be a jack of all trades and do it all. Not just a driller for gas, but transport the gas as well. The barriers to entry are high (nobody is going to build a pipeline beside us), good infrastructure in already in place with major pipelines nearby and we should see 4-8 wells being drilled in 2008 & 2009. There not going to be sexy results, but will begin the development of the area with the high success ratios that will hopefully attract others to the area once we our positioned. We are conducting workovers, 3D seismic shoots and have acquired over 100 miles of pipeline with more acquisitions in the works and coule be announced in March or early April. These pipelines will eventually be linked together to send our gas, and 3rd party gas to our plant at a rate of 10mmcf/day and then onto the Transcontinental Pipelines of which 4 are nearby. IMO with time, we will control the area and whats good about Kansas right now is it is in Rich Greens backyard (Kansas State Alumni), not overrun with competition (YET), its low risk, and low cost, and we have Italy to give us our "sex appeal".

Cheers,

cvac01
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PostSubject: Re: Saxon Oil Company (SXN.V)   Tue Apr 22, 2008 9:34 am

Part 3

So now we have a brief understanding of the history of SXN and a pretty good understanding of where we are as a result of the merger, so lets get into the interesting stuff.

But first, while putting together part 3 I found it quite funny that when Sovereign Chief (SCV.V) is talked about it is referred to as a "shell" company. Maybe thats why we have seen a revaluation of our share price?? For those unfamiliar with this term it is basically a corporation that files and reports and does the necessary work to maintain their interests in leases, etc, but essentially "shells" are just that, shells of a company with no "company maker" assets.

Foundation:

Long story short we didn't really have much prior to the merger, and IMO not much after the merger with respect to "company maker" assets. Rich soon changed that and his vision is not based on hype, it is based on proven reserves in areas with infrastructure to bring wells on-line quickly and he has already doubled production and looks to quadruple production by Feb 2008.
Currently we have working interests in about 110 wells of which approximately 30 we are operator's on. Workovers in both fields in New Mexico have been going very well and we have increased production from basically nothing to something worth collecting revenue from. This combined with currently producing wells, other ongoing workovers and completion efforts I think we are sitting slightly higher then 200BOE/day (not including the recent wells as per News release).
The issue seems to be with our working interests and the back-in rights on many of our older wells by Western O&G. Is Rich going to hit his target of 320BOE/day by month end? I think he has a good chance, but the 2nd cotton valley well isn't going to be drilled until Q2 08 and we only a few more wells to complete (Bittel (10.9%) Eumont (20%)).
Of the remaining completions, the Eumont sounds the most promising from the 3D seismic data they were using and I am expecting good things from this well and future offset wells of which 6 have been identified already. There is also the North Echols in New Mexico which produced 100BOE/day but due to mechanical failure prior to acquisition by SXN it was taken offline. SXN is going to use the casing already in place and sidetrack at nearly a horizontal entry (70 - 80') to get things back up and running.

Additional info on Foundation:


Cotton Valley: (ie Arnold Rust wells)

The Cotton Valley in Texas is low risk with great success rates on wells drilled (nearly 100%). SXN currently owns working interest in eight producing wells (now 9) in this field, all operated by Comstock. They will be drilling another in Q2 08 and I expect similiar results to the last one.
An example of lower risk, low-key “drill bit” profitibility is Goodrich Petroleum. Goodrich is years ahead of Saxon as it develops gas wells in the Texas Cotton Valley trend and this area is not SXN's focus, but it is a great example of what can be accomplished in this field. When Goodrich started drilling at the Cotton Valley in 2003 its shares were around $2. They are now at $34.
As of June 2007 Goodrich Petroleum Corporation has drilled 203 wells in the Cotton Valley Trend with 99.5% success, with the only miss being a mechanical/technical failure and not a geological one.
The Cotton Valley formation is predominately natural gas with 8% to 10% porosity. Wells drilled in the Cotton Valley Trend typically exhibit the following characteristics:

  • Predominately natural gas
  • High probability of success
  • Significant development potential and repeatability
  • Additional upside in the Pettit and Travis Peak

For the wells completed to date in the Cotton Valley Trend by Goodrich, the average initial gross production rate per well was approximately 1,700 Mcfe per day.
(Check for "links" to additional Cotton Valley info on left hand side that I will post shortly)

Permian Basin Info:

There are many companies out there within the permian basin, but since Saxon took at 20% stake in AleAnna I played close attention to all activity in the area and came across one very interesting company with some Helium (like SXN in Kansas) upside to it, and also found a HUGE deal in the area interesting as consolidation starts to take place.
Enhanced Oil Resources (EOR.V) - I'll post about it in more detail in the off topic forum, but have a look at their website and latest presentation. Very interesting strategy and in a way similar to what SXN is doing with our pipeline system in Kansas, but they are doing it with Co2, which they will be shipping to the Permian Basin for stimulation of depleted fields that they are picking up for pennies onteh dollar. http://www.enhancedoilres.com/
The $3.6 billion deal that sparked my interest was with Plains Exploration & Production Company (NYSE: PXP) merging with POGO. Normally I don't follow the largecap stuff, but I was following the permian basin closely and Pogo had drilled 57 fourth quarter wells in the Permian Basin and Texas panhandle areas, completing 54 of them as producers.
"Following the acquisition, pro forma PXP will have a proved reserve base of approximately 635 million barrels of oil equivalent and a total estimated reserve potential of 1.4 billion barrels of oil equivalent (proved, probable and possible). At year-end 2006 pro forma for asset sales, Pogo reported 219 million barrels of oil equivalent proven reserves."

Clearly there is upside potential in the areas SXN's foundation is built upon and maybe we can continue to take small % working interests like we have been to slowly build up cashflows. Because at the end of the day it is ITALY and KANSAS that are the "company makers"


Kansas & Italy:



Cheers,

cvac01
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PostSubject: Re: Saxon Oil Company (SXN.V)   Tue Apr 22, 2008 9:31 am

Part 2

So maybe we paid too much for "OLD" Saxon? Maybe the put option is no big deal (still to find out) and maybe there is still good production to come from the properties we acquired in the merger?
With time we will know forsure, but for now the best we can do is make educated decisions and have all the facts laid out before us, but IMO this will all be small potatoes to what Rich Green has going on now, but nontheless still a good merger when looking at the properties on a synergy basis.

POST MERGER:

Taking a close look at the merger it is easy to see there is a good mix, because the two companies had a lot of the same projects and as a single entity doubled up their working interests on these projects and also picked up a 10% interest in a small drilling company based in Texas.

So why the continous downtrend in share price and market cap since the merger?

First of all, shareholders were overconfident (I was one of them) about the merger and felt like we had a great company with good management (pre Rich Green) that were well connected and would surely start to promote their company to their wealthy contacts. Looking at a stock chart tells us much of the opposite and I am glad to see Rich at the helm now!! At the time of the merger we had a market cap of just under $30 million on BOE/day production of under 100 BOE. What were we thinking as investors? Did we have that much promise in our properties for future production? Id say no, because they haven't proved much more production since then and if it weren't for Rich, IMO we would be much much lower in market cap! Yet month after month our market cap went down further and further, while our BOE stayed the same? Clearly, people were starting to realize how overvalued the company was.

DEC 8TH,2006 SAXON ANNOUNCES RICH GREEN AS PRESIDENT EFFECTIVE JAN 1, 2007:

Commenting on his new appointment, Mr. Green said, “Saxon Oil is a well positioned business with a good foundation. I am delighted to accept the challenge to build a team to efficiently develop and produce oil and gas reserves and enhance shareholder value.”
Just after Rich came on board we had basically hit our lowest market cap for as long as I can remember, but perhaps we were still being re-valued in the market to what we should be priced at with under 100BOE/day production? But when Rich started to increase our BOE/day drastically in a short period of time I started to question the valuation. Since becoming president Rich has more then doubled production and hopes to exit Februrary 2008 at minimum 320 BOE/day and by year end who knows? Yet we still trend lower???? Are we still overvalued? I would say NO and we have much more promise in the properties we have now then we ever did.

What Rich has Done:

He went to work quick and likes private companies, because of his days as Co-Founder and Senior VP of LaRoche Petroleum Consultants and I would be suprised if he hadn't spoken with Alenna or done some sort of consulting for someone close to the company prior to the 20% acquisition.
He likes private companies, has lots of contacts in the industry, went to school in Kansas and conducted reserve reports for 1,000's of public ad private companies as a partner in his consulting firm.

So what's his plan?

First, he goes out and acquires 20% of AleAnna, which shows some very good growth prospects for SXN. Secondly, he goes to work in his backyard (Kansas) where he no doubt knows many and is working hard to get a strangle hold on the entire area of interest and most interestingly is the Helium component found in Kansas. These are the 2 main assets of SXN and IMO the rest is a good foundation.
Rich has a strategy and is either holding his cards close to his chest for good reason? Or the story just needs to be told properly? we will soon find out and I think 2008 and into 2009 is when shareholders are significantly rewarded!

Cheers,

cvac01
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PostSubject: Saxon Oil Company (SXN.V)   Tue Apr 22, 2008 9:28 am

Hi all,

I have been following Saxon Oil for quite a few years and I have posted these summaries on other discussion boards and basically want to give a complete overview of the company here so updates make sense for new followers and to have a reference point for myself.


Part 1

Saxon Oil Company:

Formerly known as Sovereign Chief Ventures (SCV.V), the company was renamed Saxon Oil Company after a merger in April 2006. The company is currently being run by Richard Green (as of Jan 2007) and IMO he has done a phenomenal job since coming on board and hes just getting started and a big reason why the company is going to be successful moving fwd.

History:

Prior to the merger in April 06, past president Bill O. Wood resigned in January 2005 and Bill D. Saxon who had served on the board since 2002 was appointed President and CEO.

Bill Saxon has deep pockets, is well connected (industry and US Government) and has been actively engaged in all aspects of the business since 1954 as an independent oil operator. In 1980 he took his private oil and gas company public and in 1985 the oil and gas reserves and all its drilling funds were rolled into a Master Limited Partnership, "Saxon Oil Development Partners L.P.", and listed on the American Stock Exchange.

Bill Saxon's tenure as President and CEO was short lived (4 months). He resigned in May 2005 but continues to pursue O&G prospects for the company as Chairman of the Board. Steven D. Saxon (his son) was appointed President of the company at that time and has significant experience in the industry from his duties as Executive VP of Saxon Oil, which was the 2nd private O&G company his family started up in 91' after his father rolled the 1st Saxon Oil company into the Limited Partnership. IMO investors were mixed about Steven taking over for his father, but Bill was in his 70's and we soon found out that the whole situation was setting up Sovereign Chief to merge with Private Saxon Oil to form the current Saxon Oil Company (SXN.V)


MAKES ME WONDER IF A 3RD PRIVATE O&G COMPANY IS IN THE WORKS AND WHY HE DECIDED TO SELL TO SOVEREIGN?


LETS TAKE A LOOK AT THE MERGER:
We issued 16,873,375 shares for 100% of "OLD" Saxon Oil
What was also in that deal was a put option/ right of 1st refusual?
Which basically says that the "OLD" Saxon Shareolders (ie Bill Saxon, his family, etc) have the right to put all or any of the 16,873,375 shares value to the "New" Company (SXN.V) for repurchase. Now this can be settled by SXN.V by issuing common shares of SXN.V with an equivalent value of the orginal purchase price or a cash payment.

So what was the orginal purchase price and its breakdown?

Cost of Acquisition: $6,048,992


  • Working Capital 158,044
  • Property & Equipment 7,840,544
  • 10 % Investment in Preset Drilling 1,240,053
  • Bank Debt (465,000)
  • Note Payable (641,517)
  • Future Income Tax Liabilty (2,083,132)


So at $6 million dollars for Saxon Oil we issued 16 million shares at a cost of about $0.36 for what?
Clearly, we took over some debt that SAXON had outstanding and a $2million tax liability. As for the property and equipment, looking at their production numbers as of April 06 (date of merger) we had under 100 BOE/day, so we must have paid a lot IMO for future production (which we haven't see yet from those properties) or we got a lot of equipment. We also got 10% of Preset Drilling, which I would assume is making money and perhaps once the rigs are not contracted out, we could use them? Still IMO, we paid a lot for SAXON OIL, but perhaps there is something I am missing?

What exactly does that put option mean
?
In plain english, its a long-term liabilty on the Balance sheet.
So thats how we became Saxon Oil (SXN.V) and some things that needed to be mentioned to paint the clearest picture moving forward. I am not want to talk about only the good things of a company and I want to tell EVERYTHING about a company. Whether its good or bad I want to paint the clearest picture for fellow investors.
Having said all that, Rich is now the man in charge and we are a completely different company with a different direction and strategy. Moving forward I would still like to know more about the Put Option and the properties we paid over $6 million for.

Cheers,

cvac01


Last edited by cvac01 on Tue Apr 22, 2008 9:32 am; edited 1 time in total
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