FOR IMMEDIATE RELEASE
August 28, 2008
Saxon Oil Announces Second Quarter 2008 Results
DALLAS, TX - Saxon Oil Company Ltd ("Saxon") (TSX VENTURE: SXN) (FRANKFURT:SXN) (BERLIN:SXN) today reported revenue of $1,372,851 for the three months ended June 30, 2008 compared to revenue of $426,115 for the three months ended June 30, 2008, an increase of 222%. The increase in revenues was due to higher product commodity prices and increased production from new and existing wells. The Company posted a net gain of $129,829 for the three months ended June 30, 2008, compared to a net loss of $505,560, for the three months ended June 30, 2007.
Revenue for the six months ended June 30, 2008 climbed to $2,283,515, compared to revenue of $904,451 for the six months ended June 30, 2007, a 152% increase. The Company had a net gain of $4,540 for the six months ended June 30, 2008, compared to a net loss of $864,709, for the six months ended June 30, 2007.
Saxon’s operational success continued throughout the first half of 2008. Most notably, the Eumont State No. 1 exploratory well in Lea County, New Mexico, completed in May 2008, continues to flow approximately 175 barrels of oil per day with little water. The operator has applied for a new field status with New Mexico regulatory authorities but no ruling has yet been announced. Cumulative oil sales for the first 90 days of production exceeded 18,000 barrels of oil. Saxon owns a 15% working interest and a 12.5% net revenue interest in this well and offset locations.
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:
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.
Saxon’s current oil and gas production comes 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.
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
Toll Free: 1 866 515 7708