DALLAS, October 4 /CNW/ - Saxon Oil Company Ltd. ("Saxon") (Pink
Sheets:SXNOF) (TSX Venture:SXN) (FWB:OVG) (BCN:OVG) has agreed to complete a
Cotton Valley development well operated by Comstock Resources of Frisco,
Texas. Saxon is the second largest working interest owner in the Arnold Rust
2-3 well with approximately 18.7% interest. The well was spudded on September
20, 2007 and reached a total depth of 10,315 ft on October 3, 2007. After
evaluating the target interval with electric logs, the operator has elected to
run 4 1/2-inch production casing and complete the well in the Cotton Valley
objective, and Saxon has concurred in this decision.
If successful, the Rust 2-3 well will be the ninth producing well in the
North Tatum portion of Oak Hill field in Rusk County, Tex., in which Saxon has
an interest. North Tatum is a prolific gas producing field with significant
historical production from the Jurassic-age Cotton Valley Limestone.
Additional infill locations appear to exist under Saxon interest leasehold and
the company anticipates additional development opportunities in this field.
Richard G. Green, President and CEO of Saxon said, "We are pleased that
Comstock has begun infill drilling of this portion of Oak Hill field. Other
operators have had excellent success with similar infilling programs in this
and other Rusk County gas fields and we welcome the opportunity to
participate. We have a significant working interest here and these wells
should be very good producers."
Previously, Saxon announced its participation in a second development
well, the Arnold Rust 1-3, which will be drilled immediately after the
completion of the Rust 2-3 well, using the same drilling rig. Comstock
Resources will act as operator on this well, in which Saxon again has an 18.7%
working interest. The success ratio in Cotton Valley development wells is
nearly 100% in Oak Hill field.
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 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 Ltd. Patrice Nazareno,