DALLAS, September 24 /CNW/ - Saxon Oil Company Ltd. ("Saxon") (TSX
VENTURE:SXN) (PINK SHEETS:SXNOF) (FRANKFURT:OVG) (BERLIN:OVG) announced today
that drilling has commenced on its Arnold Rust 2-3 development well. Saxon is
the second largest working interest owner in the 10,400-ft Cotton Valley well
with an 18.7% interest. The Rust 2-3 well, operated by Comstock Resources, is
located in the North Tatum field in Rusk County, Tex., which is a prolific gas
producing field. The gross completed well cost is estimated to be more than $2
million USD. Saxon expects this well will reach target depth by mid October.
A second development well, the Arnold Rust 1-3, 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 Rust 1-3 well costs are anticipated
to be the same as the Rust 2-3 well.
Saxon Oil Company commenced drilling on the Jackson-Williams #3
development well in early September, in which Saxon owns a .085% working
interest. The operator, Tri C Resources of Corpus Christi, Tex., has set
intermediate casing below 10,000 feet and intends to continue drilling to a
proposed total depth of nearly 14,000 feet. Drilling is expected to be
completed by early October.
The Eumont State #1 well, in which Saxon previously announced its
participation, has now been staked by the operator in New Mexico. The well is
located in Lea County and will be drilled later this year. Saxon has a 20%
working interest in this well.
Earlier this month Saxon acquired interest in 30 Kansas wells in two
previously announced transactions. These acquisitions, combined with the
acquisition of non-operated working interests in 17 wells in New Mexico,
nearly double Saxon's net production in barrels of equivalent oil per day.
Workover and basic maintenance activity have been completed on three leases in
New Mexico with successful results, and Saxon has begun work on several of its
wells in Kansas. The company hopes to maximize production and decrease lease
operating expenses with the Kansas work, which should take several months to
complete. Further, Saxon anticipates drilling several development wells on its
recently acquired leases in Kansas during late 2007 or early 2008.
Saxon currently owns interest in 108 oil or gas wells in Texas, Oklahoma,
New Mexico, North Dakota, Kansas, and Louisiana. Saxon has completed four
acquisitions since June 2007, with plans to acquire more properties that
complement its existing production and technical capabilities.
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,