The increase in revenue was mainly the result of additional oil and gas production, transportation of third-party gas through its midstream operations, and positive commodity prices.
Revenue from oil and gas production for the year ended December 31, 2008 was $4,126,251. The company’s midstream gas gathering business, which began operations in July 2008, had revenue of $1,487,951 for the last six months of 2008.
2008 Operational Highlights:
— Saxon Oil’s first exploration well in Lea county, New Mexico, the Eumont State No. 1 well, was drilled in previous year and was concluded in May 2008. Throughout the year, the well flowed oil at stabilized pressures and rates exceeding 150 barrels of oil per day (bopd). Saxon Oil also drilled and completed the successful wells in Oklahoma and Kansas in 2008.
— Saxon Oil’s has doubled the size of its gas gathering systems to 220 miles through the acquisition of the Pawnee and West Wichita lines. Subsequently, the company formed a 50/50 joint venture with American Energies to operate above 400 miles of gas gathering systems in Kansas.
— Saxon acquired coal mine methane assets covering 239,000 acres in the principality of Asturias, Northern Spain in the fourth quarter 2008. The Spanish Company has been granted permits to extract hydrocarbons from six large coal mining complexes.
— AleAnna Resources LLC, in which Saxon Oil’s owns a 20% membership interest, commenced 3D seismic shooting in November 2008 in Italy and concluded the shoot in March 2009. AleAnna is now reviewing the 3d data and upon review of the processed data will begin filings for drilling permits for its first well.
