DALLAS, October 9 /CNW/ - Saxon Oil Company Ltd. ("Saxon") (Pink
Sheets:SXNOF) (TSX VENTURE:SXN) (FRANKFURT:OVG) (BERLIN:OVG) has agreed to
participate in an exploratory oil well in Ellis County, Kansas and the
re-entry and workover of a well in Gove County, Kansas. The operator of both
wells, Castle Resources, Inc of Schoenchen, Kansas, anticipates operations to
begin in October 2007.
The Bittel #1 well, with a target depth of 3,900 ft, is an exploratory
test of Arbuckle and Lansing-Kansas City (LKC) reservoirs trapped in
structural closures which were identified in a recently completed 3-D seismic
survey. Historically, the carbonate Arbuckle and LKC reservoirs are prolific
oil producers in the central Kansas typically from subtle structural closures.
Saxon will have a 10.9375% working interest in the Bittel well which has an
estimated gross dry hole cost of $154,000. Gross completed well cost is
estimated to be $310,000.
The Cheney #4 well is a re-entry and workover of a temporarily abandoned
well originally drilled in 1982, completed in the deeper Mississippian
limestone and produced until a recent casing leak forced temporary
abandonment. Castle Resources purchased the Cheney well from another Kansas
producer because the electric logs originally run in the well show an untested
and unproduced oil productive interval in "J" zone of the LKC. The "J" zone is
an excellent producing interval in the LKC in Gove County and the log response
appears analogous to producing wells in the area. The re-entry is planned to
remedy the casing leak and then perforate and test the "J" zone. Saxon will
have a 25% working interest in the Cheney #4 well which has an estimated
completed cost of $138,600.
"Kansas is proving to be an excellent area of growth area for us," said
Steve Moore, CFO of Saxon. "We feel the area offers relatively low drilling
costs, solid reserves, and excellent potential return on investments in a
known producing area with established infrastructure. We've added a field
office in Hays, Kansas, to handle these new wells, as well as the wells and
leases we already operate in central Kansas. We will participate as
non-operators in these two wells but plan to operate in some future drilling
activity on the leases we previously acquired."
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. Saxon has plans to drill more several additional 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,