FOR IMMEDIATE RELEASE
August 17, 2009
Saxon Announces Flowing Completion in Eumont #2 Development well
DALLAS - Saxon Oil Company Ltd. ("Saxon") (PINK SHEETS: SXNOF) (TSX VENTURE: SXN) (FRANKFURT: OVG) (BERLIN: OVG) announces the Eumont State #2 development well in the Urssey Tank field of Lea County, New Mexico was successfully completed as a flowing oil well on August 12, 2009. During the first 24 hours, perforations at an undisclosed depth in the Seven Rivers formation were gauged at various choke sizes and tubing pressures with rates ranging from 11 to 52 barrels of oil per hour with no water. The operator plans to decrease the choke size to maximize ultimate oil recovery and produce this well at approximately 150 barrels of oil per day. Saxon has a 15 % working and 12.5 % net revenue interest in this well. First oil sales have occurred and Saxon anticipates first revenue during the late third quarter, 2009.
Richard G. Green, President and CEO of Saxon said “We are pleased the Eumont State #2 has been successfully drilled and completed as a flowing oil well in Urssey Tank field. The Eumont State #1 well continues to produce in excess of 120 barrels of oil per day and has averaged over 4,100 barrels of oil sales per month since original completion in May 2008. The Eumont State #2 well gives Saxon and our partners another excellent drainage point for this exciting field discovery. Our group will monitor the performance of both Eumont wells to determine if additional drilling is warranted. Saxon continues to develop our core domestic assets and increase cash flow while simultaneously maturing our high potential European projects.”
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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