Saxon Announces Flowing Completion in Eumont No. 2 Development well



    DALLAS, Aug. 17 /CNW/ - Saxon Oil Company Ltd. ("Saxon") (PINK SHEETS:
SXNOF) (TSX VENTURE: SXN) (FRANKFURT: OVG) (BERLIN: OVG) announces the Eumont
State No. 2 development well in the Urssey Tank field of Lea County, New
Mexico was successfully completed as a flowing oil well on August 12, 2009.
During the first 24 hours, perforations at an undisclosed depth in the Seven
Rivers formation were gauged at various choke sizes and tubing pressures with
rates ranging from 11 to 52 barrels of oil per hour with no water. The
operator plans to decrease the choke size to maximize ultimate oil recovery
and produce this well at approximately 150 barrels of oil per day. Saxon has a
15 % working and 12.5 % net revenue interest in this well. First oil sales
have occurred and Saxon anticipates first revenue during the late third
quarter, 2009.
    Richard G. Green, President and CEO of Saxon said "We are pleased the
Eumont State No. 2 has been successfully drilled and completed as a flowing
oil well in Urssey Tank field. The Eumont State No. 1 well continues to
produce in excess of 120 barrels of oil per day and has averaged over 4,100
barrels of oil sales per month since original completion in May 2008. The
Eumont State No. 2 well gives Saxon and our partners another excellent
drainage point for this exciting field discovery. Our group will monitor the
performance of both Eumont wells to determine if additional drilling is
warranted. Saxon continues to develop our core domestic assets and increase
cash flow while simultaneously maturing our high potential European projects."

    
    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 United States Securities Exchange Act of
1934, as amended. All statements, other than statements of historical fact,
included herein, including without limitation, statements regarding plans for
completion, production potential, other targeted areas and expansion and
development plans and objectives of Saxon Oil Company Ltd. are forward-looking
statements that involve various risks and uncertainties. There can be no
assurance that such statements will prove to be accurate and actual results
and future events could differ materially from those anticipated in such
statements.

    
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy and accuracy of this Release.
    

    %SEDAR: 00005554E




For further information:

For further information: Saxon Oil Company, Patrice Nazareno, Toll Free:
1-866-515-7708, Email: quaycomm@shaw.ca

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Saxon Oil Company Ltd.

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