Saxon Oil Co. Ltd.

Transaction Type
Sellers
Marketers
Post Date
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MM
Description

Saxon Oil Co. Ltd., Dallas, (Pink Sheets: SXNOF: Toronto Venture: SXN) has retained SMH Capital Inc. to seek strategic alternatives. "Saxon has a diverse portfolio of attractive opportunities in North America, Italy and Spain," says Saxon president and CEO Richard G. Green. "The engagement of SMH Capital will help Saxon focus on maximizing the value of several key assets." In the U.S., Saxon holds working interests primarily in Kansas, with additional interests in Louisiana, North Dakota, Oklahoma, Texas and New Mexico. Saxon owns 240 miles of gas-gathering systems in central Kansas, through its wholly opened operating subsidiary Central Kansas Gas Gathering System. The company has contributed the gathering system assets to a 50/50 joint venture between Saxon and American Energies Pipeline LLC, called Mid Kansas Gathering System. The system provides regional producers with gathering, processing, treating and other natural gas wellhead services. In Italy, Saxon owns a 20% membership interest in AleAnna Resources LLC, which holds an 800,000-plus acreage position in the Po Valley and Bradano Foredeep in Italy. The Italian Ministry of Economic Development has recently granted exclusive exploration permits for six years for several tracts in northeastern Italy. AleAnna has shot 3-D seismic in the Po Valley area to evaluate shallow gas potential with initial data processing indicating several large structures. The company is finalizing locations and plans to submit a drilling permit shortly. Saxon also owns 100% of Hidrocarburos Del Cantabrico in Spain, which grants Saxon the rights to all hydrocarbons produced from a licensed area, which includes abandoned coal mines with an estimated reserve potential of 27 billion cubic feet of coal mine methane. Total net proved reserves for U.S. assets as of Dec. 31, 2008, are 483,000 barrels of oil, 3 million cubic feet of gas, and 2,650 barrels of natural gas liquids. Total net possible reserves are 468,000 barrels of oil, 4 million cubic feet of gas and 3,220 barrels of natural gas liquids. Contact Sylvia Barnes, 713-220-5124, sylvia.barnes@smhcapital.com.