Saxon Oil Receives New Field Designation in New Mexicoadmin
Saxon Oil Company Ltd. has received a new field designation from New Mexico regulatory authorities for its Eumont State No. 1 oil discovery in Lea County, New Mexico. New Mexico designated the Eumont well as the discovery well in the Urssey Tank: Yates-Seven Rivers Pool. Special pool rules are in effect from the date of first production in May 2008, which set allowable production at 350 barrels of oil per day (BOPD) per 40-acre proration unit plus a discovery allowable of an additional 28 BOPD for two years.
The Eumont well continues to flow oil at rates exceeding 150 BOPD on a 16/64-inch choke and cumulative oil production has surpassed 30,000 barrels of oil. To optimize ultimate oil recovery, the operator has elected not to increase the flow rate to the allowable limit at this time. The operator does plan to drill at least one offset well on an adjacent proration unit in the first quarter 2009. Saxon owns a 15% working interest and a 12.5% net revenue interest in this well and offset locations.
Richard G. Green, president and CEO of Saxon, commented: “The new field designation for our Eumont well is very important to Saxon and our partners because it establishes the rules and maximum rates of production for our future development of this significant field discovery. The Eumont well has exceeded our expectations and we look forward to continuing our development of this oil field in 2009.”
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.