DALLAS, TX, May 5 /CNW/ - Saxon Oil Company Ltd ("Saxon") (TSX VENTURE: SXN) (FRANKFURT:OVG) (BERLIN:OVG), announced today it has a closed a transaction to acquire a 50% interest in 4,666.12 acres in Zavala County, Texas, in the South Texas Eagle Ford Shale play. The Eagle Ford Shale trends across Texas from the Mexican Border in the South all the way into East Texas.
The Eagle Ford Shale is a geological formation directly beneath the Austin Chalk Shale. It is considered to be the "source rock", or the original source of hydrocarbons that are contained in the Austin Chalk and the Edwards formation above it. The Eagle Ford Shale is found at depths between 4,000 and 12,000 feet.
The Eagle Ford shale is producing impressive amounts of both oil and natural gas in wells across South Texas. The northern part of the play, called the "Eagle Ford fairway", is the oil section, with lower pressure and high volumes of oil. There are reports of horizontal wells in the "oil window" producing well over 500 barrels per day. The middle section is the "condensate window" producing natural gas and condensate. The deeper section farther south, is a producer of large volumes of drier gas.
"The thickening of the Eagle Ford shale on the western edges of Zavala County is notable" commented C. Ted Wooten, President of Saxon. "We would expect this part of the reservoir to be predominantly oil and Saxon is pleased to be able to participate in this exciting project."
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.
SOURCE Saxon Oil Company Ltd.
For further information: For further information: Saxon Oil Company, Patrice Nazareno, Toll Free: 1-866-515-7708, Email: firstname.lastname@example.org