Saxon Oil Announces Update on Italian Seismic Program



    DALLAS, TX, Jan. 12 /CNW/ - Saxon Oil Company Ltd. ("Saxon") (TSX
VENTURE: SXN) (FRANKFURT: OVG) (BERLIN: OVG) announced today that the 3D
seismic program on the Corte de Signori concession area in Po Valley of Italy
is being carried out by AleAnna Resources, LLC (AleAnna). Saxon owns a 20%
membership interest in AleAnna. The data acquisition began in early December
in the southern portion of the concession and is proceeding northward across
the region. Located south and west of Venice, this area of Italy is a
relatively flat agricultural region with numerous drainage canals. Initial
field processing is very promising and high quality information is apparently
being gathered despite some weather delays. Seismic acquisition is expected to
continue through January and February. Detailed interpretation is expected
after additional processing of the seismic information in the second quarter
of this year. Drilling could commence as early as the fourth quarter 2009.
    The Corte de Signori concession was the subject of that certain
Evaluation of Prospective Resources assessment by Chapman Petroleum
Engineering Ltd. (Chapman) dated January 8, 2008 and effective as of January
1, 2008, conducted in accordance with National Instrument 51-101. That
assessment concluded that Corte de Signori best estimate prospective gas
resource was 6,323 million cubic feet (MMcf) per prospect net to the Saxon
interest in AleAnna Resources in the permit area. The low and high net
prospective resource estimates per prospect were 1,439 MMcf and 30,103 MMcf
respectively. Economics run in that report at $10 per Mcf ($10,000 per MMcf)
gas price calculated a best estimate present worth discounted at 10% net to
the Saxon interest to be $25,712,000. The report assumed seismic would be shot
in late 2008 and that drilling would commence in 2009 and continue in 2010
with production commencing in 2012. Saxon believes the basic timing
assumptions have not changed.
    Prospective resources are defined as those quantities of oil and gas
estimated on a given date to be potentially recoverable from undiscovered
accumulations. There is no certainty that the prospective resources will be
discovered. If discovered, there is no certainty that any discovery will be
technically or economically viable to produce. As in all aspects of oil and
gas evaluation, there are uncertainties inherent in the interpretation of
engineering and geological data and any conclusions or estimates by Chapman
represent informed professional judgments only, not statements of fact.
    Richard G. Green, president and CEO of Saxon, stated: "The sophisticated
3D seismic information currently being gathered will allow us to evaluate the
shallow gas potential in this AleAnna permit area in the Po Valley of Italy.
The management of AleAnna Resources has done an excellent job of assembling an
experienced technical team to acquire the highest quality data on this
concession. Our initial indications are the data is of high quality and may
exceed expectations. We believe our attractive concession positions and
ongoing seismic work program in Italy coupled with our recently announced
acquisition of coal mines for gas extraction in Spain place Saxon in an
excellent position to supply energy to Europe within the next several years.
Given the recent turmoil in the European energy markets and recently announced
gas contracts in the Po Valley exceeding $14 per Mcf, Saxon's positions in
Europe are highly strategic and accretive to the value of the company."

    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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