DALLAS, October 3 /CNW/ - Saxon Oil Company Ltd. ("Saxon") (TSX
VENTURE:SXN) (Pink Sheets: SXNOF) (FRANKFURT:OVG) (BERLIN:OVG) announced today
its participation in a new well in the Lasley Field area of Oklahoma. The
Lasley Field - which is one of Saxon's largest U.S. holdings in terms of
acreage, reserves, and production - has potential to increase Saxon's future
reserves and cash flow. Saxon currently owns working interests in 26 producing
wells in the Lasley Field, with four existing producers in the section being
drilled. Saxon expects drilling of the DG Williams 3-9 well to start in
November 2007 and anticipates additional developmental drilling in the Lasley
Field in 2008.
"This new well is in a great location, on trend with existing producers
and offsetting excellent Red Fork Sandstone production to the southeast and
northwest," said Richard Green, President and CEO of Saxon. "This is a
low-risk development well in which we are pleased to participate. With average
gross estimated ultimate recovery in the section of over 3 billion cubic feet
and current prices for gas and oil, this is an attractive development location
for our company and consistent with our goal to increase production and
Saxon has various working interests in four existing producing wells in
close proximity to the proposed well. According to Saxon's year-end 2006
reserve report prepared by the independent engineering firm of LaRoche
Petroleum Consultants, the gross estimated ultimate recovery of these four
wells average more than 3 billion cubic feet of gas and 9,000 barrels of oil.
The operator, Western Oil and Gas Development Corporation, anticipates
cost to drill and complete the DG Williams 3-9 well to be $2.4 million.
Drilling should start in November 2007 and take approximately 30 days to reach
the proposed target depth of 13,900 ft. Saxon currently owns a 1.6% working
interest in the proposed Williams 3-9 well.
Elsewhere, Saxon is currently drilling two wells in Texas - the TriC
Resources Jackson-Williams #3 well in Jackson County and the Comstock Arnold
Rust 2-3 in Rusk County. Both wells should reach target depth in mid-October.
Saxon has an 18.7% working interest in the Arnold Rust 2-3 well and 0.8%
working interest in the Jackson-Williams #3 well. Saxon also plans to
participate in the drilling of the Eumont State #1 well in New Mexico and
Arnold Rust 1-3 well in East Texas later this year. Saxon owns an estimated
20% working interest in the Eumont State #1 well and an 18.7% working interest
in the Arnold Rust 1-3 well.
With recent acquisitions in Kansas and New Mexico, Saxon now has working
interests in 106 wells. Saxon has doubled its daily oil and gas production in
the last three months.
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
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy and accuracy of this Release.
For further information:
For further information: Saxon Oil Company Patrice Nazareno,
877-515-7708 Email: firstname.lastname@example.org