Saxon is the second largest working interest owner in the Rust 2-3 well with approximately 18.7% interest. The Rust 2-3 well is Saxon's ninth producing well in the North Tatum portion of Oak Hill field in Rusk County, Texas. North Tatum is a prolific gas producing field with significant historical production from the Cotton Valley limestone. Additional infill locations appear to exist under Saxon interest leasehold and the company anticipates additional development opportunities in this field, including drilling of the Arnold Rust 1-3 well later this month. The success ratio in Cotton Valley development wells is nearly 100% in Oak Hill field.
Richard G. Green, President and CEO of Saxon, said, "The strong initial production data from this well is very encouraging, and the well should be a very good gas producer. The initial production rates appear consistent with prior Saxon interest wells in the area that have generated excellent economic returns on investment."
The Rust 2-3 well is the second successful well Saxon has drilled in the last 30 days. As previously announced, Saxon is in the process of completing the Jackson-Williams #3 exploration well in the Morales East Field of Jackson County, Texas. During the drilling process the well encountered reservoir pressures in excess of 10,000 lbs per square inch.
With recent acquisitions in Kansas and New Mexico, Saxon now has working interests in 108 wells. Saxon has doubled its daily oil and gas production in the last three months. Besides the Arnold Rust 1-3 well, Saxon plans to drill several more wells in the 4th quarter 2007.
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