HOUSTON, Aug. 24, 2011 (GLOBE NEWSWIRE) -- Saxon Oil Company Ltd. ("Saxon" or the "Company") (TSX-V:SXN) (Frankfurt:OVG) (Pink Sheets:SXNOF) (Berlin:OVG) is pleased to provide an update on its non-operator participation in the previously announced exploration play in West-Central Texas (see press release dated October 25, 2010).
In October 2010, the Company announced its 10% participation in what has become a 35,000 acre exploration play in West-Central Texas. The operator, along with all working interest partners, has since executed a farm-in agreement for an additional 22,000 acres in this play. Drilling operations on the project area for three wells are ongoing.
The initial drilling and completion program called for; 1) drilling three horizontal wells; 2) obtaining whole cores in the vertical section on the first well; 3) analyzing the mud-logs, the electric logs, the core data on all three wells; and 4) optimizing the completion on all three wells utilizing data collected to date.
The first two wells were drilled vertically into and through the target formation. The wells were then logged and plugged back to enable the operator to drill a horizontal portion of the well into and along the top of the targeted formation. Both of the first two wells have indicated strong liquid hydrocarbon shows throughout the lateral part of the borehole. Completion operations on these first two wells will commence in the next few weeks after all data is analyzed. Open-hole electric logging operations on the vertical portion of the third well are currently underway.
The total project area currently encompasses approximately 57,000 gross acres, with Saxon holding a 10% working interest in the entire project area. All partners in the project will make a decision in the near future regarding whether to try and increase the project acreage position.
Saxon will release additional information pertaining to this project area, and the well production results when actual data is made available and when the early release of more detailed data doesn't compromise Company's ability to competitively acquire additional acreage.
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 international 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.