Saxon Oil, a Tier One Texas-based Canadian company, is an independent oil and gas company engaged in the acquisition, development and production of oil and natural gas reserves. Saxon 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.
Saxon is led by Richard G. Green, President and Chief Executive Officer and Steven D. Moore, Chief Financial Officer, and Sioux Sinnott. All three have extensive business experience in the oil and gas industry. Saxon’s management team is committed to making sound business decisions based on solid geology, engineering and economics.
Saxon currently has production totaling more than 245 bbl of oil equivalent per day from wells located in Texas, New Mexico, North Dakota, Oklahoma, and Kansas. Saxon, through its wholly owned subsidiary, Central Kansas Gas Gathering System, owns 240 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.
Saxon Hits Big in New Mexico
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. 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."
Eumont State No. 1 well’s production facilties are handling more
than 300 bll of oil per day.
Saxon’s Italian Gas Play Heating Up
Prospects for Saxon in Italy through its 20% membership interest in AleAnna Resources, which Saxon acquired in June 2007, are very encouraging. In May 2008 AleAnna 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).” The application grants AleAnna the exclusive right to explore for oil and natural gas for a period six 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.
AleAnna is proceeding 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 first well in 2009. The granting of this official decree by the Ministry of Economic Development is a major step for AleAnna, who is finalizing discussions with a premier international 3D seismic acquisition contractor and intends 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. 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.
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. 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.
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:
Saxon Oil Doubles Gas Gathering Capabilities
In June 2008, 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.
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.
“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.”
“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.”
CKGG’s natural gas gathering systems are located in central Kansas’ natural gas
producing region. The gathering systems are comprised of approximately 230 miles of
pipeline, compression capabilities, and are connected to dozens of wellhead delivery points.
Saxon Oil Company Management Team
| Richard G. Green – President /CEO | |
| • | 33 years of extensive domestic and international experience in geology, petrophysics, and engineering |
| • | Co-Founder and Senior Vice President of LaRoche Petroleum Consultants, Ltd, from 1996 until his employment by Saxon |
| • | Worked with the petroleum consulting firms of Netherland Sewell & Associates and DeGolyer & MacNaughton, as well as Shell Oil Company |
| • | Geology degree from Kansas State University |
| Steven D. Moore – CFO | |
| • | 32 years of oil and gas technical, managerial and financial experience |
| • | Communications Director and Strategic Planning Director for Halliburton Company |
| • | Editor and Publisher of Petroleum Engineer International Magazine |
| • | Engineering and MBA degrees from Southern Methodist University |
| Sioux Sinnott | |
| • | 34 years of oil and gas international experience in E & P, drilling and manufacturing |
| • | Co Founder and President HRI from 1997-2003, EVP Saxon Oil 2005-2006 |
| • | Previous International Experience with Exxon, ARCO and Petrosakh |