DALLAS, June 30 /CNW/ - Saxon Oil Company Ltd. ("Saxon") (PINK
SHEETS:SXNOF) (TSX VENTURE:SXN) (FRANKFURT:OVG) (BERLIN:OVG) announced today
that completion work has commenced on the Eumont State No.2 well in Lea
County, New Mexico. The Eumont No.2 well is the first development well in the
Urssey Tank Seven Rivers field discovered in 2008. The Eumont No.2 well
offsets the Eumont State No.1 discovery well, which has already produced over
60,000 barrels of oil since its completion in May 2008. The Eumont No.2 well
encountered the same subsurface zones of interest as the Eumont No.1 well, and
Saxon expects the Eumont No.2 well to produce in a similar way. Saxon plans to
monitor the production from this well for several months but it appears likely
that the Eumont No.2 well proved up additional drilling locations. Saxon owns
a 15% working interest in the Urssey Tank Seven Rivers field.
Elsewhere, Saxon scored another success with the completion of the
Williams 4-9 well in the Lasley field area of Oklahoma. The Western Oil and
Gas Development Corporation ("Western") D G Williams 4-9 well was drilled in
Caddo County, Okla., as an offset development well to the Williams 3-9
producer. The Williams 4-9 well was completed in the Red Fork sandstone
formation and began flowing to sales on in late May. The well is flowing
through casing on a 12/64-in. choke with a rate of 1,152 Mcf per day and 8
barrels of oil per day with over 2000 psi of flowing casing pressure. Saxon
owns approximately a 1.9 % working interest in the Williams 4-9 well.
Also in the Lasley field area, Saxon is participating in the Western
Rosser 2-11 well. The well reached total depth in mid-June and is been
completed after logging gas in multiple Red Fork sandstone objectives. Saxon
owns approximately a 1.5% working interest in this well. Saxon has also agreed
to participate in the Western Kardokus 7-10 development well in Caddo County,
Okla., which should commence drilling in mid-July. Saxon owns approximately
10% interest in Kardokus 7-10 well, which is planned as a 13,700-ft Red Fork
sandstone development well.
In addition, Saxon plans to drill two development wells in Stanton
County, Kan., in the second half of 2009. These development wells are in the
prolific Arroyo field where prior wells have produced both gas and oil from
several Morrow sandstones. Saxon owns a 75% working interest and will operate
both of these wells. Cost estimates and permits are currently being obtained.
Workover activity on several oil wells operated by Saxon in central Kansas are
also planned for the third quarter and additional drilling opportunities in
the shallow gas play alongside gas gathering systems owned by Saxon subsidiary
Central Kansas Gas Gathering are also possible later this year.
Richard G. Green, president and CEO of Saxon, stated, "Although we are
focused on our very large potential properties in Europe, we are continuing to
develop our core assets in the U.S. Dramatic declines in drilling and
completion costs coupled with firming of oil and gas prices make prudent
development project economically attractive. Drilling these successful
development wells and proving up additional development drilling locations in
New Mexico, Oklahoma, and Kansas will ultimately lead to increased reserves,
cash flow and stockholder value."
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, Toll Free: