Saxon Holds Lease Position in Emerging Bossier/Haynesville Shale Play



    DALLAS, July 9 /CNW/ - Saxon Oil Company Ltd. ("Saxon") (PINK SHEETS:
SXNOF) (TSX VENTURE: SXN) (FRANKFURT: OVG) (BERLIN: OVG) announces the company
has 1273 gross acres located within the published area of the rapidly emerging
Lower Bossier/Haynesville Shale resource play of North Louisiana and East
Texas. Saxon interest acreage is operated by Comstock Resources and is located
in Panola and Rusk Counties Texas in portions of the Oak Hill, North Tatum and
Carthage Northwest Fields. The eleven producing Saxon wells produce from the
Cotton Valley Limestone which overlies Bossier/Haynesville Shale and Saxon's
working interest varies in those wells from 18 to 23 percent.
    The Jurassic-age Bossier Shale was considered the source rock for much of
the Cotton Valley gas well production in Northeast Texas and is contiguous
with the Haynesville Shale in North Louisiana. Until recently the Bossier
Shale was not considered a target for exploration and exploitation drilling.
The Bossier/Haynesville shale play is now the target for intensive leasing and
horizontal drilling activity by such prominent industry operators as
Chesapeake, PennVirginia, Petrohawk, El Paso, EnCana, and XTO. Increased gas
prices plus utilization of horizontal drilling and massive multiple fracture
stimulations have made this an emerging resource play. These wells are
completed in a similar fashion to the more mature Fayetteville, Woodford and
Barnett Shale resource plays. Area acreage prices have reportedly increased
from $100 per acre to as much as $17,000 per acre and twelve rigs are
currently drilling in this rapidly expanding exploration play. The spacing of
the horizontal wells is assumed to be approximately 80-acres per well but very
few specific well results have been made public. At least ten horizontal wells
have been drilled and completed to date across a fourteen county region of
East Texas and North Louisiana. (Source: Tristone Capital Company Energy
Research Report of 6/20/2008).
    Recently announced Bossier Shale discoveries include the Penn Virginia
Corporation (PVA) Fogle 5H in Harrison County, Texas which reported on May 30,
2008 initial gas production of eight million cubic feet(MMcf) per day with
flowing casing pressure of 5,000 psi. The well is reportedly producing even
though currently constrained by pipeline capacity of 5MMcf. PVA has publicly
announced six additional horizontal Bossier Shale wells in Harrison County
planned for 2008 and is currently drilling. Saxon interest leasehold is
located approximately 15 miles west and southwest of the Fogle 5H well. Other
announced discoveries and lease acquisitions by Chesapeake and Petrohawk are
farther east in the Louisiana portion of the Bossier/Haynesville play and all
have been announced in the last five months. Multiple public companies have
recently made announcements concerning lease acquisitions in both Louisiana
and Texas. Original Gas in Place (OGIP) per section was estimated to be
200-245 billion cubic feet (Bcf) in public disclosures made by GMX Resources
and Cubic Energy and Petrohawk has indicated recoverable gas could be 44-55
Bcf/section implying recovery efficiency of 18-27% and reserves of over 5.6
Bcf per well (Source: Tristone Capital Company Energy Research Report of
6/20/2008).
    Saxon does not have production or any proven or probable reserves in the
Bossier Shale in the 12/31/2007 reserve report and has not received any
specific well proposals to date from Comstock Resources, our operator. Due to
the distance from existing gas production, Saxon management does not believe
any proven or probable reserves net to our interest in our leasehold exist at
this time. Since our acreage is held by production from the Cotton Valley
wells, Saxon and Comstock could allow the play to continue to mature in both
the number of wells and reported data. Assuming the reported 80-acre spacing
is correct, at least eleven horizontal wells could ultimately be drilled on
Saxon interest leasehold. Saxon management will continue to monitor the
Bossier/Haynesville drilling activity in the area and will make participation
decisions on wells proposed, if any, based on sound economics.

    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:
1-877-515-7708, Email: quaycomm@shaw.ca

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Saxon Oil Company Ltd.

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