Hi all,

Saxon Oil Company (SXN.V) made a big announcement today and reported their 51-101 on their prospective resources in Italy. The 51-101 reported is based on only 2 of their 11 O&G permits in Italy and we can expect more 51-101's on the other 9 permits in the near term. SXN's exposure to Italy is through a 20% interest in AleAnna Resources (www.aleanna.us), which SXN is trying to get a bigger piece of.

AleAnna is a private company and in terms of exploration acres in the Italy Po Valley is ranked 4th among companies with greater then 100,000 acres having 766,047 acres. This puts them ahead of some of the majors like Shell and Forest. Not a one trick pony either. SXN has lots going on in New Mexico in the Permian Basin basin with results pending on their Eumont well. Also, they have various interest in 102 producing wells in Texas, Oklahoma, North Dakota (Bakken Field), Lousiana & Kansas.

SXN continues to acquire pipelines within 2 miles of where they and other companies are going to drill in Kansas. Essentially if acquisitions of addtional piplelines are successful (we already have 100 miles of pipe) Saxon will control the area which has the "potentail" for 1.8 TCF of low BTU Gas.

The most interesting thing about Kansas is that because the gas is low BTU it has been ignored by many other companies. It needs to be refined in order to meet BTU requirments to enter 1 of 4 transcontiental pipelines nearby. So SXN has been albe to pick up leases and the pipelines in the area for pennies on the dollar and continue to do so.

Why would they want to control a LOW BTU gas area, if they will have to refine the LOW BTU gas to meet requirements to enter the MAJOR pipelines?

Opportunity or Threat?

SXN has two options with the LOW BTU GAS:
1) Add or mix higher BTU Gas
2) Strip the nitrogen and helium

The answer is option #2 and its an opportunity IMO !!!

There is technology available to SXN, which they have been looking into for the past few years to strip the gas of the nitrogen and Helium, which will raise the BTU to meet requirments. SXN is looking to install such a plant to refine the gas and other 3rd party gas entering the pipelines SXN controls. Not only will they earn revenue from their own production, but they will gather 3rd party gas and refine it as well and hope to see 10mmcf/day through their pipelines once fully operational.

But there is more...

I dunno if any of you follow the price of Helium, but compared to the price of natural gas Helium sells for over $100/mcf and is in short supply. Whats really interesting is with gold heading higher Helium happens to mirror Gold and other PM's. (See Page 21 of PDF below)So, if SXN is successful at controlling the area, there is the "potential" for 1.8 BCF of Helium as the low BTU gas is refined.

You may have already seen it, but after market and when the news was released there was an Infostock Blast and Stockwatch eBlast sent out on SXN. Whether or not it generates any interest is hard to say, but I guess will find out, and IMO its only a matter of time.

Here are the key points you get via e-mail to entice you to find out which company they are talking about by signing-up:

- Projected Earnings Estimated to Skyrocket to $2.50 EPS
- Revenues NOW!From 102 Producing Wells
- STOCK TRADING WELL BELOW POTENTIAL EARNINGS – 17 CENTS

Here is the link so you can sign up and see for youself.
http://www.infostockbiz.com/contact404.html \

Here are some links of interest:

http://www.saxonoil.com/pdfs/saxon_nyc_october_2007.pdf 

http://www.povalley.com/

http://www.cygamenergyinc.com/operations-italy.html

 As Always DD's first!!

Cheers,

cvac01