DALLAS, November 2 /CNW/ - Saxon Oil Company Ltd. ("Saxon") (PINK
SHEETS:SXNOF) (TSX VENTURE:SXN) (FRANKFURT:OVG) (BERLIN:OVG) is pleased to
announce the completion of the new Arnold Rust 2-3 gas well in Rusk County,
Texas. The well's initial production tested at 966,000 cubic feet of gas per
day on a 24/64 choke with a flowing casing pressure of 1,040 lbs per square
inch. The well has been placed into production and is already generating
Saxon is the second largest working interest owner in the Rust 2-3 well
with approximately 18.7% interest. The Rust 2-3 well is Saxon's ninth
producing well in the North Tatum portion of Oak Hill field in Rusk County,
Texas. North Tatum is a prolific gas producing field with significant
historical production from the Cotton Valley limestone. Additional infill
locations appear to exist under Saxon interest leasehold and the company
anticipates additional development opportunities in this field, including
drilling of the Arnold Rust 1-3 well later this month. The success ratio in
Cotton Valley development wells is nearly 100% in Oak Hill field.
Richard G. Green, President and CEO of Saxon, said, "The strong initial
production data from this well is very encouraging, and the well should be a
very good gas producer. The initial production rates appear consistent with
prior Saxon interest wells in the area that have generated excellent economic
returns on investment."
The Rust 2-3 well is the second successful well Saxon has drilled in the
last 30 days. As previously announced, Saxon is in the process of completing
the Jackson-Williams #3 exploration well in the Morales East Field of Jackson
County, Texas. During the drilling process the well encountered reservoir
pressures in excess of 10,000 lbs per square inch.
With recent acquisitions in Kansas and New Mexico, Saxon now has working
interests in 108 wells. Saxon has doubled its daily oil and gas production in
the last three months. Besides the Arnold Rust 1-3 well, Saxon plans to drill
several more wells in the 4th quarter 2007.
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,