Saxon Oil announces new Lasley Well

Saxon Oil Company Ltd. participates in a new well in the Lasley Field area of Oklahoma. The Lasley Field – which is one of Saxon’s largest U.S. holding in terms of acreage, reserves, and production – has potential to increase Saxon’s future reserves and cash flow.

Saxon currently owns working interests in 26 producing wells in the Lasley Field, with four existing producers in the section being drilled. Saxon expects drilling of the DG Williams 3-9 well to start in November 2007 and anticipates additional developmental drilling in the Lasley Field in 2008.

Saxon has various working interests in four existing producing wells in close proximity to the proposed well. According to Saxon’s year-end 2006 reserve report prepared by the independent engineering firm of LaRoche Petroleum Consultants, the gross estimated ultimate recovery of these four wells average more than 3 billion cubic feet of gas and 9,000 barrels of oil.

The operator, Western Oil and Gas Development Corporation, anticipates cost to drill and complete the DG Williams 3-9 well to be $2.4 million. Drilling should start in November 2007 and take approximately 30 days to reach the proposed target depth of 13,900 ft. Saxon currently owns a 1.6% working interest in the proposed Williams 3-9 well.