MKGG will gather gas from third-party gas wells, which tested at combined rates exceeding 4 million cubic feet per day (MMcfd) and are expected to produce at settled rates of 3 MMcfd. MKGG has signed a Percentage-of-Proceeds (POP) gas contract with the operator for these wells and all planned development wells. These wells should effectively double the gas throughput in the MKGG gathering systems. Eventually, gas from this field, as well as adjacent gas fields, will be committed to a cryogenic gas processing facility owned by MKGG and planned for installation in 2010. The plant will process the gas which contains a significant percentage of helium, a valuable, hard-to-find commodity.
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
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this Release.
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For further information: Saxon Oil Company, Patrice Nazareno, Toll Free: 1-866-515-7708, Email: [email protected]
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