Saxon Oil Company Ltd announced that AleAnna Resources LLC, 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)". 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.
In March, 2008, Saxon released results of a resource evaluation completed on the Corte Dei Signori area. Chapman Petroleum Engineering, Ltd., completed a 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 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. AleAnna has an additional ten Applications for Exploration Permits in Italy totaling 744,037 acres approved by the Italian Ministry of Economic Development. 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 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.
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."
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