Saxon Oil announces plans to drill Eumont No. 2 well in New Mexicoadmin
Saxon Oil Company Ltd. announced plans to drill the first offset to the Eumont State No. 1, which has now exceeded 50,000 barrels of cumulative oil sales since completion in May 2008. Eumont State No. 1 continues to flow 140 barrels of oil per day and is the discovery well for the Urssey Tank Seven Rivers field. Saxon has approved the drilling of the Eumont State No. 2 well, a southeast offset well to the Eumont State No. 1. The Eumont State No. 2 should commence drilling in the near future and is planned as a 4,600-foot development well. Saxon owns a 15% working interest in the Eumont field wells and a 12.5% net revenue interest.
In Oklahoma, Saxon continues to participate in wells in the Lasley project area and has announced the Williams 4-15 commenced drilling in mid February and was drilled to a total depth of 13,739 ft. The operator, Western Oil and Gas Development, has recommended completion of the well in the objective Red Fork sand. The well is scheduled for completion next month and should be turned to sales in the 2nd quarter 2009. This is the twenty-seventh (27th) producing well in the Eakly East field (Lasley project area) of Oklahoma in which Saxon owns a working interest. The working interests in each well vary widely depending upon the section drilled and participation by other leasehold owners. Saxon owns a 2.2% working interest in this well.
Richard G. Green, president and CEO of Saxon stated “Development drilling offsetting the Eumont well makes good business sense. Saxon will continue to participate in the development of our legacy assets in the United States while we expand our low risk Central Kansas Gas Gathering project and mature the value of our European projects. We will continue to grow our reserves through prudent drilling and our project portfolio through acquisitions and development.”