Hi all,

I don't have much of an update to report except that the company is VERY happy with the Eumont and excited about the Jackson and other Rust Well. Financials should be out shortly and Italy is moving along with no snags. It is a lengthy process in Italy for any company and I am trying to piece together a bunch of information on Italy to figure out the types of wells we are going after. My DD so far is leading me to believe we are looking at Multi-Billion Cubic Feet gas targets, but I wish we owned 100% of AleAnna.

So, if I was Rich I would buyout AleAnna 100% or at least grab 30% more. Not only for Italy, but New Mexico looks like its going to be good in short order. We only got a 20% interest and i would like to see at least 50% interest, but Italy and New Mexico isn't everyting. The prospects (Kansas and Texas) that SXN is working on its own is no joke either, in fact they have "company maker" potential on their own.

When is the market going to wake up?? I will continue to accumulate as much as I can and I have already started to shuffle funds from other VERY promising investments, because I feel SXN is the real deal and I understand the play the most and have the most confidence in it and management. We just need to tell the story!!! PROMOTION is a must in the junior O&G sector.

Having said that, moving forward we got well results on the Jackson, Rust, Eumont and a bunch of workovers and targets to drill in Kansas. We also continue to acquire pipelines in Kansas to connect to our 92 miles and we are essentially creating a supply of billions of cubic feet if not trillions of cubic feet of gas with 1-5% Helium that WE (Saxon) will strip and sell the Helium. So we will be drilling low cost wells in Kansas and tie into our own pipelines, we will strip OUR helium, and strip OTHER PEOPLES Helium in our pipelines and to top it all off we get paid to transport 3rd party gas. Can you say cash cow???

Cearly the subsidiary can operate on its own, but why are we not getting any credibitly in the market?? In addition to Kansas we have New Mexico, Texas, and Italy.

Texas and New Mexico is self explanatory moving forward: Well results!!

As for Kansas Moving Forward I see:
1) Acquire More Pipelines
2) Drill some Targets and possibly acquire additional producing wells to bring onstream to strip helium
3) Acquire or build a unit that will strip the Helium from the menthane

What is so special about Helium? It sells for $120/mcf vs. the Methane (which is what the gas is before the helium is striped) which sells for about $7/MCF.

So Kansas is looking good, we are getting good resuts out of New Mexico, and our Texas drilling is also looking VERY good.

The news flow should start coming soon and it might take the new year to get this thing going, because of tax loss selling, etc, but we will have our day and it is near. I know I have said that before, but its coming. Patience is key in speculative markets like the TSXV.

Some Italy Info and how AleAnna came about acquring the land it did and why the state company (Eni) would ever give up such prospective and promising acreage. I am putting together a bunch of information on this and will provide further DD on the Italy play in the near future.

"From 1953 until 1997 the Po Basin was the exclusive preserve of the state company Eni but is now open to competition in compliance with EU law. That process saw Eni relinquish 75% of its exploration areas in a region with numerous gas fields and several light oilfields, in an area where that previous dominance resulted in the establishment of a sizeable gas pipeline infrastructure."

Cheers,

cvac01