Saxon Extends Kansas Gas Gathering System

DALLAS, Oct. 8 /CNW/ - Saxon Oil Company Ltd. ("Saxon") (PINK SHEETS: SXNOF) (TSX VENTURE: SXN) (FRANKFURT: OVG) (BERLIN: OVG) announced today an 11-mile extension of the Ellsworth gas gathering system, a part of the Mid Kansas Gas Gathering (MKGG) joint venture. MKGG is a joint venture between Central Kansas Gas Gathering (CKGG), a wholly owned subsidiary of Saxon, and American Energies Corporation. MKGG began the project in June and completion is scheduled for early November. The extension will connect a newly discovered gas field, drilled on a large, shallow-depth structural feature covering over 20,000 acres, to a Northern Natural interstate pipeline.

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.

Steven Moore, president of CKGG, commented, "The extension of our gathering system in Ellsworth County opens a new area for natural gas exploitation. The acreage along our gathering system is highly prospective for these shallow gas reservoirs and we are well placed to gather and sell these resources."

    
    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.
    

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SOURCE Saxon Oil Company Ltd.

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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