DALLAS - Saxon Oil Company Ltd. ("Saxon (TSX VENTURE: SXN) (FRANKFURT: OVG) (BERLIN: OVG) announces ongoing activity in Kansas, New Mexico, Oklahoma and Texas. In Kansas, Saxon has purchased a 50 % working interest in 1,440 acres of producing leaseholds located in Ellsworth County, Kansas in the Green Garden (Lansing) oil field and the Rathbun (Wabaunsee) gas field. The acreage has eight oil wells and six gas wells plus a gas compression station and interconnection into an interstate gas pipeline. An enhanced waterflood is planned for the deeper (3,000 ft) oil wells and significant workover and drilling activity is anticipated for the multiple shallow (2,000 ft) gas horizons. Saxon and its partner closed on the acquisition on September 30, 2008. Mid Kansas Gas Gathering (MKGG), a joint venture between Central Kansas Gas Gathering, a wholly owned subsidiary of Saxon Oil Company, and American Energies, will acquire the compression station and gas interconnection and plans to construct additional gas gathering systems and facilities in the area.
In New Mexico, the Eumont State No. 1 continues to flow oil at stabilized rates. Cumulative oil sales for the first 140 days of production exceeded 26,500 barrels of oil. Saxon owns a 15% working interest and a 12.5% net revenue interest in this well and offset locations.
In Oklahoma, the Cimarex Weber State 5-13 located in Caddo County, Oklahoma reached a total depth of 16,250 feet. The well was evaluated with electric logs which indicated multiple gas bearing sands in the Skinner, Red Fork, Morrow and Springer intervals. Production casing was set to total depth and an initial completion attempt in the Springer sands is planned for late October. Saxon owns a .002848 % working interest in the Springer completion attempt but has a 3.44385 % working interest in the up-hole Red Fork sands.
In Texas, Saxon has executed a farmout of the Heatherwood Prospect in Burleson and Milam Counties Texas to CH4 Energy II, LLC (“CH4”). The farmout calls for CH4 to drill a well on the leasehold by December 31, 2008 to a depth sufficient to test the Navarro formation. Saxon will receive a 25 % back-in after the payout of all costs incurred by CH4.
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.
Contact:
Saxon Oil Company
Patrice Nazareno
Toll Free: 1 866 515 7708
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