Saxon Holds Lease Positions in Bakken Shale Resource Play



    DALLAS, July 10 /CNW/ - Saxon Oil Company Ltd. ("Saxon") (TSX VENTURE:
SXN) (FRANKFURT: OVG) (BERLIN: OVG) announced today it has engaged the
third-party engineering firm of LaRoche Petroleum Consultants (LPC) to
determine the reserve potential of the Company's lease holdings in the Bakken
play in North Dakota. The Bakken formation is classified as an unconventional
resource play and is currently being developed using extended reach horizontal
drilling with multi-stage fracture stimulations. Significant oil production
from the Bakken formation has been recently established in numerous areas of
the Williston Basin on both the Canadian and United States portions of the
region. In April 2008 the United States Geological Survey characterized just
the United States portion of the Williston Basin as having estimated mean
undiscovered volumes of 3.65 billion barrels of oil and 1.85 trillion cubic
feet of associated gas, with most of the potential coming from the Bakken
formation. Saxon has interest in approximately 1,800 gross acres in six
separate 640-acre sections within the area of the widely publicized Bakken
Shale play. The Saxon interest leasehold is located in two separate field
areas of North Dakota separated by approximately 60 miles.
    The first and most northerly area is in Ambrose Field in Sections 14 and
15 of T163N, R99W in Divide County, N.D., and operated by Whiting Oil & Gas
Corporation. The two existing Saxon wells produce oil from the Duperow
formation, the traditional pay horizon in Ambrose field. Saxon has a 7%
working interest in Section 14 and a 17% working interest in Section 15 in
these producing wells. Three producing horizontal Bakken wells in Ambrose
Field, all drilled by Samson Resources Company in the last two years, are
approximately two miles southeast of the Saxon interest acreage. LPC estimated
the ultimate recoverable oil reserves in these nearby Bakken completions to
range from 37,000 to 111,000 bbls of oil and to average 63,000 bbls of oil
with 44 million cubic feet (MMcf) of associated gas.
    The second area of Saxon interest acreage, operated by Newfield
Exploration Company, is in the Catwalk Field area where Saxon owns working
interests in Sections 20, 27, 28, and 29 of T154N, R100W, Williams County,
N.D.. The Saxon working interests range from 7% to 27% in these four producing
wells and existing production is from the Madison Limestone. One horizontal
Bakken well operated by Tri-C Resources was completed in 2006 in the Catwalk
Field area in Section 16, several miles north of the Saxon interest leasehold.
LPC estimated the ultimate recoverable oil from that Bakken well to be
57,000 bbls of oil and 29 MMcf of associated gas.
    No proven or probable Bakken reserves are currently included in the Saxon
reserve report as of December 31, 2007. Saxon management will monitor the
Bakken activity in North Dakota and make decisions based on sound economics
should a Bakken well be proposed. The actual reserves recovered and the
revenues from any potential Saxon interest well completed in the Bakken, if
any, could vary substantially from the LPC estimates and area averages
discussed above.

    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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